By Patrick Cochran
During Bernie Sanders’ appearance at City College this past Friday, he talked about his plans to provide free college tuition and to lower student loan interest rates. In the “On the Issues” section on berniesanders.com, it elaborates on this subject by listing the six steps Sanders will take to make college debt free.
- Make tuition free at public colleges and universities.
- Stop the federal government from making money off of student loans. Over the next decade the government will profit an estimated $110 billion from student loans. Use that saved money to lower student interests rates on loans.
- Substantially reduce student loan interest rates. Average rates would drop from 4.29% to just 2.37%.
- Allow Americans to refinance student loans at today’s low interests rates. Allow millions of people to refinance from their current 5-7% rate to the current 2.5% average offered on auto-loans.
- Allow students to use need-based financial aid and work study programs to make college debt free. Low income students would be able to use federal, state, and college financial aid to cover room and board, books and living expenses.
- College would be fully paid for by imposing tax on Wall Street speculators. This would pay the programs estimated $75 billion a year by imposing a fraction of a percent tax on Wall Street speculators.