Sen. Elizabeth Warren (D-MA) told Conan O’Brien the government profits too much off the student loan system to ease the staggering debt faced by many young Americans.
The liberal standard-bearer said Wednesday night on “Conan” that she had run into a major obstacle after introducing a bill to reduce interest rates on government loans from up to 12 percent.
“The government has already pre-spent all the profits on student loans,” Warren said.
Interest rates were “set to produce tens of billions of dollars in profit,” including $66 billion for the five-year period ending in 2012, Warren said.
“The United States government should not be making profit off the backs of kids who are trying to get an education,” she said.
Warren, a rumored 2016 presidential candidate, said lawmakers were unwilling to set the interest rate on student loans to just the break-even point.
“If you want to reduce the interest rate, you’ve got to find somebody else to put the money in to fund the government over the next decade or so,” she explained.
Warren said she and some other Democratic lawmakers want to set tax rates for millionaires and billionaires to the same rate that middle-class families pay to help ease the student loan debt burden.
“As a government, we can decide we’re either going to spend the same lump of money either to keep tax loopholes open for billionaires or to reduce the interest rate on student loans — and you want to guess who’s winning right now? The billionaires, and that’s wrong,” she said. “That’s why we have to fight back.”
Watch her remarks posted online by TBS: