A Fighting Chance

Epilogue|

student loan debt got a little bigger: While there are grace periods for some types of student loans, many loans have no grace period, and the grace period time for all loans is limited. For example, Direct Subsidized and Unsubsidized Loans have a six-month grace period after graduation or withdrawing from school. There is, however, no grace period for certain PLUS loans. For more discussion, see http://www.direct.ed.gov/leaving.html. Some federal loans also allow borrowers to apply for forbearance in certain situations, which can include financial hardship. However, interest continues to accrue. See http://www.direct.ed.gov/postpone.html.

$1 trillion in student loan debt: Rohit Chopra, “Student Debt Swells, Federal Loans Now Top a Trillion,” CFPB, July 17, 2013, available at http://www.consumerfinance.gov/newsroom/student-debt-swells-federal-loans-now-top-a-trillion.

nine times higher: At the time of the speech, the interest rate available to the big banks through the Federal Reserve Bank Discount Window was about three-quarters of 1 percent. “Federal Reserve Bank Discount Window and Payment System Risk,” Federal Reserve, available at http://www.frbdiscountwindow.org.

At that time, the rate for subsidized federal Stafford loans was slated to double to 6.8 percent, which was approximately nine times higher than the rate charged to big banks. Shelby Bremer, “It’s Official: Student Loan Rates Will Double Monday,” ABC News, June 29, 2013.

off the backs of our students: “The U.S. government is forecast to generate $185 billion in profit over the next decade from students and their families under an overhaul of the federal student loan program endorsed by the White House and approved by the Senate on Wednesday.” Shahien Nasiripour, “Obama’s Student Loan Profit Guaranteed as Senate Approves Deal,” Huffington Post, July 24, 2013.

more than a million people: Jim Puzzanghera, “Elizabeth Warren’s First Grilling of Regulators a YouTube Hit,” Los Angeles Times, February 18, 2013.

over the next ten years: Republican senator Coburn introduced the initial student loan bill for 2013, and the final bill was modeled on the Republican variable-rate proposal, but with two key differences: the original bill had a large markup over the government’s borrowing costs and no cap on interest rates, while the final bill had a smaller markup for most loans and included a cap on the amount students could be charged if interest rates rose. The Congressional Budget Office determined that the Coburn bill would have produced an additional $15.6 billion in extra profits for the government over the next the ten years. See the CBO score of the Coburn bill: http://www.cbo.gov/sites/default/files/cbofiles/attachments/s682.pdf. By contrast, the bill that ultimately passed is estimated to produce $0.7 billion in extra profits. See the score for the Bipartisan Student Loan Certainty Act: http://www.cbo.gov/sites/default/files/cbofiles/attachments/Bipartisan%20Student%20Loan%20Certainty%20Act%20of%202013.pdf.

The difference between the two bills is nearly $15 billion, which would have been additional profits to the US government but are now staying in the pockets of students. All these profits are, of course, calculated on top of the estimated $185 billion in profits that will be produced from student loans over the next ten years from all the student loan programs.





Index The index that appeared in the print version of this title does not match the pages in your e-book. Please use the search function on your e-reading device to search for terms of interest. For your reference, the terms that appear in the print index are listed below.





AARP


Abaunza, Bonnie ABC News Abney, Wilson abortion Adeyemo, Wally Affordable Care Act (ACA, “Obamacare”, 2010) Afghanistan War





AFL-CIO


African Americans

financial meltdown of 2008 and



home foreclosure and



predatory and deceptive lending and





AFSCME


AIG


bonuses



Akin, Todd Albright, Madeleine Alix, Jay Ally Financial All Your Worth (Warren and Tyagi) Alzheimer’s Amalgamated Transit Union American Bankers Association American Crossroads American Express American Family Voices American Federation of Government Employees American Federation of Musicians American Federation of State County & Municipal Employees American Federation of Teachers American Postal Workers Union American Prospect

Americans for Financial Reform (AFR) Americans United for Change American Sustainable Business Council Andy Griffith Show (TV show) Antonakes, Steve Armisen, Fred asbestos victims As We Forgive Our Debtors (Sullivan, Warren, and Westbrook) Atkins, Paul Aurora autism auto bailout auto companies,. See also car loans Axelrod, David Aykroyd, Dan Bachus, Spencer Bair, Sheila Bakery, Confectionery, Tobacco Workers & Grain Millers International Union Bale, Christian bank bailouts. See Congressional Oversight Panel; Troubled Asset Relief Program; and specific individuals and institutions