Senator Elizabeth Warren (D-MA) visited The Daily Show last night to discuss the impact of Washington’s rich and powerful on student loan debt—and an entire generation of Sallie Mae-terrorized millennials raised a unified fist in the air.
Senator Warren said while there are payoffs for the big banks of this country, student loans are punishing college-bound Americans.
“If your parents can’t afford to write a check for college,” Warren said. “You’ve got to pay a much higher rate because you can’t afford your student loans. If we would reduce the interest rates, young Americans would have a lot more money to spend.”
“And then they can buy more weed,” Stewart quipped. “And then they’d be quieter.”
Citing the Federal Reserve, Warren clarified that these young Americans could buy more homes and start more businesses. (But Stewart isn’t necessarily wrong, either).
“We’re in a low interest rate environment,” Warren explained. “You can refinance your home, you can refinance your business loans but you can’t refinance your student loan debt. The government keeps you locked in with the interest rate you got so that the federal government can make money off of them.”
According to Warren, the loans between 2007 and 2012 are on target to produce about $66 billion in profits for the United States government. Meanwhile, the “tender fannies” of the one-percent are “carefully protected in every rule that’s written.”
Watch the entire interview below: