Schumer: 'The federal government is making profits off the backs of our students'

[Yo_Mama_Been_Loggin]

As lawmakers and advocacy groups continue to push for $50,000 in student debt cancellation, Senate Majority Leader Chuck Schumer expressed shock over the interest rates that borrowers are being charged by the government.

"The federal government is charging our students and those who have student debt 7% interest," Schumer (D-NY) said during a press conference organized by Student Debt Crisis, an advocacy group. "You know, I'm from Brooklyn, I'd use a curse word before that 7% ... can you believe that?"

He added: "You can get a mortgage for 4 or 5%, you can get a car loan for 4 or 5%. The federal government is making profits off the backs of our students and our graduates and our young people and our middle-aged people, and there were people at 50 who haven't paid off their debt. So this is just a disgrace."

Schumer is most likely referring to historical interest rates on student loans: In the 2006-7 year period, interest rates were 6.8% for undergraduate subsidized and unsubsidized loans. That rate has decreased over the years and currently stands at 2.75%. The interest rate will increase to 3.73% for 2021-22.

https://finance.yahoo.com/news/student-debt-forgiveness-schumer-interest-rates-204633113.html

[Hoyt]

1. Have no issue with reducing interest rates on loans. Personally, I think

interest rate should be reduced and repayment tied to income. In most cases, I think repayment is tied to income now, but the rate should be decreased. Also, for writing off low loans completely.