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Well because yesterday interest rates on student loans set to double in the the future this will cost students 1000 dollars more in here.
And now for the first time the Federal Reserve is saying student loan debt is a serious problem for the nation's economic growth.
The reason why take a look right now there's more student loan debt and credit card debt America the only thing larger is home loans.
Joining us live now part to the story Fox News legal analyst Peter Johnson junior so there's some new information that came out since we were talking about that increased yes.
Yes and in the Federal Reserve is now saying what we was saying yesterday that this is a terrible terrible burden.
On younger Americans and on their parents and grandparents who are helping him with these loans.
Of people graduating college with the average -- of -- 2324000.
Scheduled to look at six point 8% the Obama administration.
Came up with a proposal -- today.
By which student loan rates would be tied to the ten year treasury rate.
Depending upon the type of -- So if interest rates are high and low rates are gonna -- -- and a lot of student leaders as saying there needs to be kept.
Because if you took the Obama proposal and went back -- couple of years that people would be paying ten.
And eleven and 12% in a lot of students are saying.
Wow that's too much this really needs to be kept going forward.
It's -- a problem for a lot of families because I think this is one of the reasons that you're seeing a lot of these kids come home to live with their families number one unemployment so high for.
Kids in their twenties even after they graduate from college but then they have this huge debt facing them as are trying to enter out into the world.
Of students graduate with some amount of debt.
And -- in the medical associations the United States are now saying that it poses a terrible burden.
And conflict for a lot of people who want to be physicians in this country because they can't go forward and assume 200 or 225000.
Worth of debt to go to medical school I talked about the same issue I have with the young -- my office who wants to be.
And he's trying to support his family at the same time it's an intolerable burden but now the federal government is realizing.
We just can't ignore it and the government cannot act as if it's a loan shark what's happening Gretchen is that they are borrowing.
And 110 of 1%.
And then -- this out to Americans come July.
And almost 7%.
Other people would go to jail for that and that would be called -- being a loan shark and so we have to understand that it's important that for our economy.
And our future -- kids and their families have the opportunity and move Ford.
What are we talking about tomorrow.
Is answering questions about how people can get out from under.
The student loan burden what they can do in terms of deferments what they can do unfortunately in terms of bankruptcy.
What they can do to renegotiate.
So we'll be talking about real solutions.
For real kids and real families tomorrow -- an -- in new ways that I don't think people will be explored on national television before.
All right let me -- the keys out there for folks if you're getting crushed by student loans -- -- address some common questions tomorrow.
Are you taking email questions or you're just gonna take questions that you have -- we'll talk about deferments we're going to be talking about forbearance.
Really tell -- bankruptcy.
We need to -- renegotiating.
We have to tell -- all the ways.
In which you can make a go of it as a student.
In America I think it's really really important.
And I'm afraid of the repercussions if we don't take these measures in this country going forward -- will look forward to that -- -- he addresses.
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