Elizabeth Warren’s student loan proposal to utilize the overnight rate the Fed loans money to banks has been widely criticized even by some liberal commentators as a “cheap political gimmick.” [Note – link is to LI and is safe, some people are getting warnings]
There seems to be an emerging deal to lower rates, which rose recently, by tying them to the 10 year treasury Note rate.
Joe Manchin is one of the Democrats behind the deal, and it has infuriated Warren:
Via The Hill:
Liberal firebrand Sen. Elizabeth Warren (Mass.) blasted a fellow Democratic senator Tuesday as a dispute over student loan rates escalated divisions within the party.
The clash, which is highly unusual among party colleagues in the upper chamber, came at a private caucus meeting about a subject that is helping Republicans land blows against their Democratic opponents.
“Elizabeth came out very strong against Manchin,” said a Democratic senator who requested anonymity to discuss the exchange. “She said, ‘They’re already making money off the backs of students, and this adds another $1 billion.’”
Warren was referring to a deal Sen. Joe Manchin (D-W.Va.) and two other members of the caucus, Sens. Tom Carper (D-Del.) and Angus King (I-Maine), struck with Republicans to peg student-lending rates to the 10-year Treasury notes.
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