Senator Elizabeth Warren, that egalitarian zealot from Massachusetts, thinks that if giant banks can borrow from the government at a very low interest rate, so should college students. In an excellent Freeman piece, Richard Lorenc examines the unintended consequences of her “Bank on Student Loan Fairness Act.” Rather than solving a problem, this bill would make things worse if it were enacted.
I only wish that Lorenc had questioned the bill’s premise. The problem is not that big banks get a better rate than college students, but that the government lends money to them at all. Nothing in the Constitution authorizes the government to be in the lending business — not for banks or other businesses, not for housing, not for “green energy,” and not for students.