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Sen. Warren Calls Student Loan Proposal a “Bad Deal”

elizabeth-warrenBOSTON (AP) — U.S. Sen. Elizabeth Warren is finding herself in a very public disagreement with President Barack Obama on the question of student loans.

The White House is urging Congress to pass a bipartisan compromise that would offer lower interest rates for the next few years.

The White House released a statement Tuesday urging swift passage of the deal, negotiated in recent weeks. Under the deal, interest rates would be linked to the financial markets.

An hour before the White House released the statement, Warren fired off an email to supporters, faulting the compromise deal which she said keeps rates too high.

The Massachusetts Democrat called the proposal “a bad deal” that pits students against each other, adding that “this whole system stinks.”

Interest rates on subsidized Stafford loans doubled to 6.8 percent on July 1.