Another grand idea that we can’t afford.
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Sen. Elizabeth Warren (D-MA) has introduced a bill to cut college student loan interest rates to just 0.75%, a move that progressive Huffington Post writer Robert Kuttner says could spark a “counter-revolution against austerity politics.”

Kuttner calls on progressives to mount a “mass movement for relief of college debt.”

Warren’s proposal would tie Stafford Loans to the Federal Reserve’s bank lending rate. Lawmakers have warned that interest rate on subsidized Stafford student loans will double July 1st for loans taken out by new student, not those with existing loans.

Critics, however, say the issue is overblown.

Mark Kantrowitz of says over a 10-year repayment period, a student borrower would incur just $761 in added cost. And as CBS News Money Watch points out, “While Americans have roughly $1 trillion in outstanding student debt, only about 3 percent of student debt will be impacted if the Stafford rate doubles.”

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