She should sit on her hands and not open her mouth so she may seem only half the dope she really is. m/r
Warren’s Student-Loan Demagoguery | National Review Online
MAY 28, 2013
By Ian Tuttle
As in her campaign, she ignores the truth to stir populist anger.
‘If the Federal Reserve can float trillions of dollars to large financial institutions at low interest rates to grow the economy, surely they can float the Department of Education the money to fund our students, keep us competitive, and grow our middle class.”
That is the logic behind the first piece of legislation from Harvard Law School professor-cum-Massachusetts senator Elizabeth Warren, introduced in the Senate two weeks ago. The Bank on Students Loan Fairness Act seeks to extend to students the same loan interest rates allegedly offered to the country’s chief financial institutions. Among the problems with the bill? Said interest rates for said greedy banks do not exist. But that is a minor detail in Warren’s latest exercise in cheap populism.
During the summer of 2012, as Barack Obama and Mitt Romney competed in a game of “How Low Can You Go?” on federal student-loan interest rates, Congress tussled to a stalemate on the issue, settling for a one-year extension of the 3.4 percent interest rate on subsidized Stafford loans, those available to students with demonstrated financial need. The government pays the interest on subsidized Stafford loans while the student is in school (hence “subsidized”). But the current rate extension is set to expire July 1, and if Congress does not act, the interest rate will double for 7 million students.
“We can’t afford to wait,” Warren has said, doing her best to rally supporters to action in a made-up crisis. We are in need of a long-term solution, but Warren’s bill is not it.Brookings Institution fellows Matthew M. Chingos and Beth Akers dismiss the proposal as “a cheap political gimmick.”
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