BOSTON (CBS/AP) — U.S. Sen. Elizabeth Warren is calling on Congress to stop student loan interest rates from doubling this summer.
The Massachusetts Democrat introduced a bill Tuesday which would let students pay the same interest rate on their government loans as banks.
Student loan interest rates are set to jump from 3.4 to 6.8 percent in July. Warren said banks can borrow from the Federal Reserve at an interest rate of less than 1 percent.
“Right now students are being crushed by loans,” Warren told WBZ-TV’s Jon Keller.
In a speech on the Senate floor, Warren said supporting college graduates is critical to a strong economy and is as much of a priority as providing banks with cheap access to credit.
Warren said her bill would let students borrow funds at the same rate as banks borrow from the Federal Reserve for one year.
“The plan is to give the students the same deal we are giving the big banks,” Warren said.