Who Is Elizabeth Warren Yelling At Today?

It is a day ending with "day," so obviously it is time for Elizabeth Warren to open her shrill harpy yammerbox and yell at some poor soul just doing his or her job. Who is getting "the business" today? Is it the bankers? Is it the people who are supposed to be regulating the bankers? (Haha, just kidding, "supposed to be regulating the bankers" is not a thing.) Is it Scott Brown, to rekindle the passions of yesteryear? No, Elizabeth Warren has moved on from those things -- for now! -- and is yelling at the people who do the student loans, instead.

In her letter to the FHFA (PDF), she inquired why the student lender was borrowing from taxpayers at “0.23%-0.34%” interest when it has been charging students”25-40 times higher” on fixed-rate education loans.

The Federal Home Loan Banks were “intended to bolster the banks’ support for the housing market – not to be a backdoor way to subsidize highly-profitable private student lenders,” she wrote last Monday. “It is deeply worrisome that the Federal Home Loan Banks may be undermining their mission by extending billions of dollars in cheap credit to private student lenders.” [...]

“The new loans will make a profit of $184 billion over the next 10 years, and it turns out that even the so-called subsidized loans make a profit of about 14 cents on the dollar,” she said. “The student interest rate is scheduled to double July 1, so the question I have is, why do we call these loans subsidized? I don’t get this.”

“This just seems wrong to me, Mr. Chairman,” Warren concluded.

Clearly, Ms. Senator Warren does not understand how capitalism works: Sallie Mae and the FHFA get taxpayer muneez for like negative dollars and then they charge all the dollars to the students who borrow the muneez, and then President Romney tells the students to do like him and live off their portfolios for a while, while the stay-at-home wifey makes some ironing board pasta, it's cool. And then Congress can't get any action done, and so we double the student loan interest rate to 6.8% because, sorry, but Obamacare is not going to repeal itself.

[ RawStory ]