Student Loan Standoff
Chris Stirewalt and Debbie Dingell discuss the student loan standoff on Capitol Hill
- Duration 8:20
- Date Apr 30, 2012
Chris Stirewalt and Debbie Dingell discuss the student loan standoff on Capitol Hill
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Billion American dollars that.
He's the amount of federally backed student loans obtained by students last year as part of a total student loan burden.
One trillion dollars floating around out there in the the issue of student loans.
How to finance them what interest rates people should pay has become the latest.
Micro issue the the latest storm.
Election 2012 and how that works out who not only we'll have something to do with who gets elected president and who holds the house who takes the senate.
-- also have a lot to do with the future this country.
So let's talk about that very consequential subject with -- B dangle.
She is one of your very favorite guests on the show I know.
But she is the she's democratic -- there for his future strategies for and we should always stipulated she is married to Michigan Democrat John -- -- the longest serving member of the United States House of Representatives -- -- Chris great to be Arizona is now I.
I was excited when I saw that you're going to be on the big Internet telecast today because I -- to talk about this issue and you know about this issue and you know about.
Being -- -- -- you know about the struggle about how to give people the right educations.
How to get people educations that helped them.
And are just killing time before they graduated to a job market that won't absorb them.
They have to be carrying a lot of additional dead.
This is something you've worked on this is something that your home state has struggled with technical education for decades.
Well -- -- -- actually because I'm concerned that we aren't paid -- attention to hiring period in this country can be used to be Michigan Vermont.
-- my CDs you know he's been one of the top state in your students to be if they weren't there when West Virginia are out of school class -- overly diaspora.
Harry used to be so much more important is we keep cut reducing.
The budget for hiring is getting cut weight too much if you -- Houston's -- He could go there you're not getting the education they need it and is the key to their future.
And how we're gonna finance this student -- is a critical question because.
Too many people are finishing in -- in afforded to percentage -- is -- if we don't quit making some political football this student loan rate is getting double by July 1.
So this you're always going to double by July 1 and two looks -- looks back up and and figure out how we got here the way we got here was that in the 2006 election.
The Republicans were under heavy pressure because student loan interest rates under what's called Stafford loan program which provides subsidized lending and has since 1965 or so.
Provide subsidized lending for needy and disturbed -- Students which basically lower middle class to -- Qualifies as Jeff -- Doug -- you -- -- related program you're talking about a quarter or so of more than 21 million.
US students a lot of people participate in this program.
So what -- 2006 was that interest rates were very high the housing bubble.
There was inflation concerns that the Fed interest rates had gone way up over 8%.
And students were paying a lot of money because the Stafford would grant her Stafford loan program was tied to what.
Actual interest rates where they were reduced version of what actual interest rates were so under pressure Republicans in 2006 said.
We're going to and couple them from interest rates we're gonna Salomon.
-- six point whatever percent it sounded like a great deal because it was a 22% drop.
If they would have never done that.
Think about this as they would have never done that the current rate -- worse student loan -- based on how low interest rates are would be about two tenths of -- percent.
It would be eight points lower than it was in those days.
Why can't we just go back to the way -- used to be why don't why why are we having this debate this July 1 debate about is it gonna go to six point whatever is gonna say it certainly.
Yeah Aurilia doubled to six point eight you know we have an inability.
In this country to look at -- that -- outdated how we -- period.
I don't know how we start to do that but that's part of the problem of Washington it's part of the problem -- -- -- digital -- can be directly.
-- -- -- -- I'll tell me.
-- you and I are talking -- common -- and we get built into these subsidy programs we can built in so many things.
That -- -- that way for.
Decades and we can't change it.
Now what they keep you in -- exactly right -- that rate had gotten so high.
Kids couldn't have 48%.
And you're still -- too many people are just like you wait you're not going to school.
So how -- -- scrap it -- not only do we have a problem of how do we may be completely -- how do we we -- -- we -- student loans.
Even his different eating out and -- know they're tiny cuts and women's how they can preventative care in all kinds of -- -- including political issues that don't belong in there let's have a discussion of student loans let's not put to rest of this in the.
But is it fair to do pay for a dozen Democrats some Democrats -- -- pay for -- therefore.
We use that term in Washington because it's a rare.
But that you actually that there is an offset any either tax increase -- cut.
To pay for additional spending.
But people have different ideas about a pay for -- -- -- event.
-- we -- it feet deep I mean six billion dollars isn't all.
But a lot of it's -- -- it's a lot of -- and that's part of the problem and we do need to figure out how you do pay for since the same time.
What are the nation's priorities in a hurry to get -- had -- not make -- a political football and you and I both know that some people like designing some of this decree difficult -- I don't care about disgusted and that's my -- -- and knowing that.
And both sides do it -- today and both sides did to Andy you know it's a situation now I've heard about it in power play which you can have to look for the cost of the Twitter follow and a quick bit quick click.
-- cease -- -- on Twitter are ready to every weekday for you -- and it is I'm just crazy about your.
I -- there today that this is sort of a microcosm of the larger problem that we face which is.
Every issue that comes -- is immediately see neither is it political cudgel with which to beat your opponent.
And you don't wanna solve the problem because you want to exploit the problem or it's seen as something that could be weak spot for you so you just avoided altogether and you don't hate.
Appropriate action and whether it's the tax code or whether it's entitlements or anything else we've reached a point absolute stalemate.
And -- -- out for Monday morning that he brings some optimism -- toll like it's gonna get back.
We have to act -- I.
Internet I have not had a chance to meet Chris -- and we are -- the exact same thing because I think it does care about this country we care about this nation.
And he did a brilliant job summarizing what the problem he has.
If I was reading some article -- the that we can attend this industry to move legislation.
I'm not quite sure -- seen any kind of major movement -- Nat.
Delaying their session we're gonna have this year is going to be a crisis in this country what will get -- -- -- -- content hope the American people understand what's at stake in this election.
And they're gonna -- people that they elect we want action we're tired of this kind of politics and quite frankly the people I think that have told these elected officials.
Accountable by the voters and they need to -- -- -- tired it just kind of politics they're tired of people not having a bad bone in doing what's right and we need more people to run for office.
They're going to get in there and do what they think is right.
Her indignation is righteous and that's why you -- Internet Debbie -- thank you very much for being with us.
Thank you I won't give you the last word.
When I say that.
Julie ED says students would not be higher -- of the teachers were not union members costs would be lower maybe you can make an argument for that and public education.
But the tuitions at private schools are asked astronomical made even more astronomical but obviously it's a factor.
Frankly -- says the government should not be in the loan business especially since McCain even.
Pass or perform to a budget it's kind of hard to argue with.
Comment from Brian Conway says.
Where our student loans authorized by the constitution made -- guaranteed by the federal government shouldn't be done.
So you guys don't like an Internet well -- being the fact of the matter is this things you're just day we.
Don't however seem that way to administer it rationally and that sounds like the larger problem for the short term okay.