Senator Elizabeth Warren is taking another swing at student debt. She's pushing a bill to allow student loanholders to refinance:
Warren said Tuesday that many of those with outstanding loans have interest rates of nearly 7 percent or higher for undergraduate loans while students taking out new undergraduate loans pay a rate of 3.86 percent.
The Massachusetts Democrat said the nation’s $1.2 trillion in student loan debt is “crushing young people and dragging down our economy” ["Warren Files Bill to Allow Refinancing on Federal Student Loans," AP via CBS Boston, 2014.05.06].
South Dakota's Democratic candidate for Senate Rick Weiland says Warren's plan is a great idea:
The lone Democrat in the crowded race for the seat being vacated by retiring Sen. Tim Johnson says that loans are used to pay for technical schools, not just colleges and universities. He says three-quarters of South Dakota graduates leave school with some debt.
Weiland says South Dakota's young people would benefit tremendously from Warren's legislation as they struggle to begin their careers ["Weiland Says Grads Should Get Help with Loans," AP via KDLT, 2014.05.07].
The Warren plan will not pass, of course, because it would pay for this refinancing (the federal government would buy these loans back from private lenders, then issue a lower rate) by taxing the Republican base, the plutocracy:
To help pay for her plan, she would enact the ever-popular Buffett Rule, which would impose a minimum tax rate on millionaires [Jordan Weissman, "Elizabeth Warren’s Smart, Flawed, and Obviously Doomed Plan to Help Student Borrowers," Slate, 2014.05.06].
The GOP will block Warren's plan, because as we all know, and handful of millionaires do much more good for the economy than hundreds of thousands of young workers and entrepreneurs who will plunge their few dollars a week in savings directly into the economy.