Student bank loan proposal prompts Port Angeles rally Thursday

PORT ANGELES — A protest of a planned interest rate hike on federally subsidized Stafford student loans is planned Thursday.

The rally, organized by MoveOn.org, will be from 3 p.m. to 5 p.m. at the corner of First and Lincoln streets.

The interest rate on the student loans is set to increase from 3.4 percent to 6.8 percent Monday.

The rally will be in support of a petition drafted by U.S. Sen. Elizabeth Warren, D-Mass, that calls for Congress to not only halt the scheduled rate increase but also to lower the rate from 3.4 percent to 0.75 percent.

That low rate is what retail banks pay the Federal Reserve when they need cash, according to Warren’s petition, which is in support of her proposed Bank on Students Loan Fairness Act.

“The biggest banks in the country — the ones that wrecked our economy and cost millions of Americans their jobs — pay next to nothing on their debt, while students pay nine times as much. That isn’t right,” the petition says.

“The Bank on Students Loan Fairness Act lets students take advantage of the same low rates offered to banks for one year while Congress finds a fair, long-term solution on student loan interest rates,” it continues.

The petition is to be delivered to the U.S. House of Representatives and Senate, it says.

To find the petition, visit http://tinyurl.com/kx5uc5o.

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