(CNSNews.com) – Sen. Elizabeth Warren (D – Mass.) begged progressive students attending the 2013 Generation Progress conference in Washington Wednesday to boo what she called “obscene” government profits on student loans.
Referring to a stalled deal between congressional Democrats and Republicans to lower interest rates on federally subsidized Stafford loans, which doubled from 3.4 to 6.8 percent on July 1st, Warren told conference participants: “Instead of helping our students, government is making a profit on student loans.
"We could hear some booing at this point,” Warren prompted the audience, adding that the government stands to make a $51 billion profit on student loans this year alone.
“There you go” she said as the crowd, following her lead, loudly booed. “And I want everyone to understand, that is true profit,” the Massachusetts Democrat added.
She also likened a Republican plan to revamp the student loan program, which includes some of President Obama’s ideas, to the Freddie Mac and Fannie Mae scandal, in which mortgage loans were given to individuals who could not afford them.
Warren noted that the student loan plans sell students lower “teaser” interest rates for the first few years which then double, much like they did when the housing market crashed.