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Loans -- are reaching an all time high and for the first time it is actually topped credit card debt so will this lead.
To the next bailout let's ask Santa Smith she joins us now from Fox Business Network thanks for being playing us for having me.
-- problems is the rising cost of college tuition is increasing at a rate -- higher than the cost of living we have a graphic and show.
And also higher than even health care costs which are also -- -- the cost of inflation.
And you know the caller says that economists are blaming.
The federal government entering the student loan market because it's just creating a bubble like housing -- absolutely in no in the -- school year in 93%.
Of all federal loans all student loans -- government issued loans.
So these are private loans that were talking right here this is big government getting into -- college.
Business and this is what's driving up tuition prices it's not you have more and more folks falling behind them these payments.
As overall student debt skyrocket in this country while by the weight -- and the overall level of consumer debt -- -- -- weighed -- since the recession this is the one area that's ballooning.
An amount of folks falling behind on payments is guaranteeing those that are behind on their -- -- ninety or more days right now.
Stands at 11%.
That's up from the normal rate of -- 9% so people just can't afford to pay off these debts coming out of college especially when -- can't get a job that's for sure and does -- this is making people call for loan forgiveness the problem is as we've said.
The federal government -- these loans so the taxpayers foot the bill.
They certainly could -- there's a couple of things that can be viewed as a bail out here and that's we've certainly heard President Obama talking about capping those interest rates that are going up.
They doubled in many circumstances.
They could -- them they could forgive those interest rates altogether.
-- -- even talked about forgiving some of these student loans that exist out there today.
But as you're saying because 93% of all student loans in the last year were issued by the government.
It's not about taxpayers on the hook for this and that that -- if it goes away.
Were all paint for it.
So this is a huge problem in this country nearly a trillion dollars in outstanding student that right now 956 billion.
On the table so what is the solution.
Well they certainly that the president has talked about the interest rates and a big problem right now.
-- -- survey just showed that more than 50% of eighteen to 24 year old.
Aren't moving in with their parents when they graduate college they can afford to live on their own.
So -- -- the interest rates they forgive them for some time or they forgive a certain amount of debt or.
They back off of issuing those federal loans -- and that's one of the biggest answers that's out there.
Let these loans -- more private and maybe then we won't have those colleges.
Jacking up the tuition rates in making it harder for ever going to go to school because those that can't afford to pay for it.
The -- really paying the price yeah all right Sandra Smith Fox Business Network thank you thank you.
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