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Who benefits from student loan 'bailout'?
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President Obama pushing lawmakers to keep federal interest rates at their current level
- Duration 3:46
- Date May 2, 2012
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Transcript
This transcript is automatically generated
President Obama pushing lawmakers to keep federal interest rates for student loans at their current level before they double on July 1.
If the low rates are extended Americans will face an additional six billion dollars in taxes a year to offset the cost.
Our next guest calls this quote yet another indefensible bailout using taxpayers to pay.
For other people's poor choices.
Charlie search is a columnist for the Washington time is Charlie.
College -- -- choice.
Well you know obviously if if you know you can -- college and you've got tens of thousands of dollars worth of college debts.
And no job then did so -- somewhere along the way -- -- has been made.
But what you know this is one of these things where politicians of both parties in Washington always can rally together behind and that is spending more money.
That we do not have that that taxpayers are Gannett ultimately have to.
To her to cough up and and they're always so good at dressing it up and making it sound like such a good idea by talking about the students.
Indeed this will help a lot of students and and you know that that that's you know makes -- -- feel real good.
But the real problem here is that you know -- -- win these people talk about banks and talk about credit card companies and talk about all of these these big businesses.
That Jack up rates and fees and things like that -- customers.
What what what what anybody talk about what universities and college yeah because they're about.
That the cost increases in universities and colleges have been going up faster than the rate of inflation for years.
It's incredible we're talking you know double digit 89.
10%.
Increases every single year and for you know granted I'm no genius about these things but I don't know what more you're getting out of college.
Today then you then you were you know 101520 years ago.
But I do you know that -- we have a real crisis in this country with us students not learn -- -- coming out of college not learning math not learning history not learning.
Important things like that but all but but also a lot of crazy sounding courses being taught which are sort of almost outed by these.
Colleges and universities.
But but.
Let's not forget this this this six billion dollars every year that this is going to cost taxpayers.
Yes you know we can talk about the students.
But who benefits ultimately from this.
The colleges and universities and what are they doing every year.
They're jacking up rates and and maybe just maybe if if they found out that that the government wasn't standing behind students.
Ready to dole out all this money that we don't have maybe the colleges and universities would stop and -- You know we should figure out a way to do this a little bit more efficiently.
Yeah so it's not a bailout of of colleges and universities -- -- but it backs up the student loans that are helping keep them afloat that's what absolutely be an -- proposed here.
And -- -- absolutely anybody and it's no different from all these tax subsidies.
Four environmental.
Schemes and things like that that that that the user guests that the user gets the tax refund.
Which is tax dollars given to that to the 22 to the user but it's all in and an effort to.
Prop up these Green industries that can't be some part supported.
In the in the in the private market.
Place and so you know if it is so essentially what we have here is a situation where these colleges and universities are -- Across our our.
-- four you know priced.
Two high.
That is such that they cannot be supported the private sector well you know maybe that maybe that that private sector -- Take an impact on those colleges universities all right Charlie hurt from The Washington Times interest -- take comment.
Try thank you thanks John.
