Sen. Warren is Wrong on Student Loans, but Almost Right

Student Loans
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Senator Warren is wrong on her recent student loan proposal, but her instincts are right. My initial feeling is to love Senator Warren’s idea to allow students to borrow at lower rates because, well, why should Big Banks get such a great deal at 0.75%, right? As someone who knows what its like to be paying student loans at 6.8%, I can appreciate the sentiment. However, let me put my economist hat on for a minute and explain why this is a little too aggressive. I think charging students at the 10-year bond rate (around 1.80% as of today) would … Continue reading