Warren’s on right side of loan bill

Lauren Williams's picture
Friday, July 26, 2013

After listening to Education Secretary Arne Duncan make his pitch for a Senate compromise bill that lowers a July 1 hike in interest rates on student loans, I give him a C.

It stands for “contempt” — because that’s what he showed for average American parents who are struggling to pay their children’s college tuition with whatever money they can scrounge up.

On Tuesday, Duncan hosted a media conference call to sell a bipartisan proposal that will lower interest rates for now, but raise them in the future. Given the haplessness of the Obama administration when it comes to getting much of anything out of Congress, it’s probably the best option the White House can sign onto. But Duncan’s dodge when it comes to acknowledging the money the government makes off the backs of students — as Senator Elizabeth Warren rightly describes it — is insulting.

It’s not profit, argues Duncan, because “most people” think of profit in terms of what “a company made last year”; in contrast, he said, what the goverment stands to make “is a projection.”

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