Student loans a trillion dollar ticking time bomb?
Debt soars to new highs
- Duration 6:48
- Date Nov 30, 2012
Debt soars to new highs
Also in this playlist...
This transcript is automatically generated
Welcome back our America's -- the future of the republic Smart as -- -- watch.
-- your favorite founding father.
Abraham Lincoln Abraham Lincoln or you know upon his Brothers -- -- -- first president.
I want to get just out of tape recorder because nobody's gonna believe.
George Washington -- the kind of product tonight I learned we met what is Ben Franklin's famous 400 president.
-- she's not not Jesse -- those geniuses are racking up student loan debt at a record and dangerous pace.
In fact student loan debt now sits perilously.
-- trillion dollars and guess who gets tapped that time bomb explodes yet.
You -- daily talk about this -- -- for a long time some of the problems patrolling about 93% of student loan debt is held by the government.
That's right because and that and President Obama actually made it more so because it took out that private lending this past year so.
-- have a lot of kids are going and they want the college experience a big college experience okay they finished they can't find jobs.
I was that the unemployment -- -- -- unemployment rate is something upwards in the 40% area so it can't find jobs and so they can't pay back their student loans.
So -- when it all gets to be at this point because it picnic it's so bad.
Usually will come in and bail everybody out so then you have no incentive to pay it anyway and I think I just.
Reading the tea leaves I think that have been up for the student loans are coming.
And written about President Obama I remember this when he's campaigning he -- if you elect Mitt Romney present -- pal program at a grant program is gonna go away -- it's going to be severely.
-- we found out today.
The pal program.
Obama is bringing it back eighteen semesters now down to twelve he's actually -- -- -- program.
Are you really surprised them.
You know another thing about the student loan debacle is the universities are really taking advantage yet we have not learned anything from Freddie.
And Fannie but the universities have.
If they have a government that saying we're gonna make all this cheap credit readily available -- you don't have to pay back.
What are they doing.
They're saying we're gonna hike up our tuition every year and it's really not on the education I -- history of bubbles is a very -- course I believe -- But they're spending it on climbing walls lot -- bars expenses salaries for these liberal professors to -- the stuff down their throats.
And they're taking advantage of parents and students which brings us to a question should every kid really be going -- college or is it -- stick up for parents.
This is a very good -- I'm glad you said -- can we pull up a full screen a spokesperson for Arnie Duncan said this it's almost unbelievable said.
To make student loans that the goal is to -- -- loans available to as many people as possible.
And requirement -- among credit scores that would block many Americans from going to college spot it sounds exactly.
Exactly what Barney Frank said in 200320042005.
Get everyone in a home and a home -- It is the deal -- around this table really getting nervous here that that only 11% of the student -- Syria over ninety days.
Late which is higher than an app and -- -- -- America in it in the middle recession.
Are -- coming off a recession.
You've got it's not at all if you're not gonna have a big bomb like that these people are gonna get jobs they got to pay back to student loans and by the way -- -- just you wanted to -- at a beach.
With a bunch of clues -- and say as say that represents America.
Eight dollar priced at Brian at -- -- the now the government and I was I talked to the government demands no collateral -- no credit -- us.
Here's and that because -- -- this one parents' parents plus program.
A parent could take alone for the kids student debt the student at the big -- graduates from college.
He's on hook for the loan to parent this of the parent walks away he still keeps his job.
And alone the thought overall I think -- all that they're all hoping that they walk away in the government's gonna have to pay for everything I was staggered to find out the twenty million kids go to school.
In twelve million of them borrow money to go to school -- the question is a senator corporate brought up.
Should we be piling debt of these students the well meaning kids who want to go to school.
They get told you can get a 5000 dollar loan you let -- go become go to barber school well I think you got to do two things have you got to upgrade down -- wake of the I'm very rich I'll be very heavy like to see some -- accountability when it comes to why these schools got 55000 dollars a year number island.
Number two I would like to find out.
Number one if Bob if these students are gonna be going to these colleges in there could be some consultants -- to say listen -- with your family makes 45000 dollars a year.
I'm not sure you want to get out for years and held 32000 dollars.
But that's just ridiculous argument they make 45 does -- we don't want you to make that -- any more money than that you're kinda rising kids who to come from families who don't.
I love how on both local and NYU I couldn't afford exact so that's easy and I don't think so I don't 122000.
Following year to go to university with more -- -- I cosigned a student loan for a girl who.
Died in the podium action right -- the report I've got to pay to that's different.
Well that's different because something could you cosigned a price check your credit make sure you -- collateral that and that's that's it that's -- the system worked.
They know the other part the promise these people to walk away be no more more people -- walk away a hundred Bob says it's only 11%.
Numbers actually 120 billion dollars that -- -- -- teetering on on the brink of default.
That's right -- if -- and my instincts would have been to open up the private sector market to allow for more competitive loans and -- how to get -- government generated I also think on that gubernatorial level there -- some very -- creative things that are being suggested for example.
Governor Rick Perry recommends and is working with the state colleges there.
How can we get a 101000 dollar degree.
A four year 101000 dollar degree at state colleges are working towards -- that means that opens up a whole new world of peoples and are not saddled with debt when they try to leave because -- -- ways that there have been I didn't.
Can I ask Andrea America I know we are running out of time but.
What pres Obama when he -- pick and -- -- -- what type of energy we should be able to use a -- he tells it colleges.
You slow down the rate of increase in tuition the way it's up and outpacing everything.
Well he does that and every state of the union but again what are his words matter if they're not followed up by actually actions I think it's actually a winning issue for Republicans.
It's something that affects parents grandparents kids this would be a winning issue if they actually called up some of these universities need university.
And professors and talked about how much they're making.
What they're teaching and put them on display and why -- -- So I don't get it and it.
I think -- always -- religious.
-- out a lot of the crowd shouted loans go to auto mechanic schools.
Today airline -- schools there's a lot of trade schools here they get a lot of this -- -- that's like a bunch of liberal but I got that last word in -- coming out because this.