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Part 2
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Then we examine the reasons behind the doubling of interest rates from 3.4 to 6.8% on federal student loans set to go into effect on Monday, following the failure of the Congress to agree. House Republicans insist on tying the rates to U.S. Treasuries with a cap of 8.5%, while Senator Elizabeth Warren’s proposal to set rates at 0.75%, which is what big banks pay for money from the Federal Reserve, didn’t even make it to the Senate floor. David Halperin, a senior fellow at Republic Report and the founding director of Campus Progress joins us to discuss a dysfunctional government making money off the backs of indentured students.
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