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Double trouble in less than ten days the interest rates on student loans may spike from 3.4 percent.
To six point 8% that's when a government subsidies set to expire.
A lawmakers are rushing to strike a deal to keep the subsidy going but on the flip side.
Rich says -- rates double -- rich.
Well look we're looking at trillion dollars of possible student loan deeds also is even six point 8% probably is way too low.
-- cost a lot.
-- I went was able to go to at Stanford University but only after I spent my first two years.
At a community college three blocks from my home.
And while I lived at home -- spent nothing my first two years and still have a degree from a pretty nice college there are so many ways -- -- That we can cut the costs of education without asking taxpayers.
To fund these low interest loans.
It's okay well and it is a subsidy you make no mistake Rick and interest rates are based on risk.
Student -- have a lot of risk.
That's I don't want to get all bleeding heart about this I obviously very much disagree with with rich.
Listen it's and it's about this to me.
If you create a situation were only people who have a lot of money can go to the better schools and let's face it the better schools in the most expensive schools.
Ivy League schools cost a lot of money.
What does that do to this country if only people who can afford it can go to those schools this has they would want to her -- horrible thing that.
When I mean it's about what -- hardly -- any -- The -- -- I date to be personal about I I got into Columbia graduate school but I couldn't afford to go to Columbia as I went to northwestern.
And I did very well northwestern but I had to make a choice.
Based on how much I could afford to -- -- is that natural seems.
It is David and that people have to make these are tradeoffs and in terms of -- one of the problem one of the reasons why in addition to government subsidies tuitions are skyrocketing.
Is institutions feel apartment is charging 60000 by golly we've got a charged fifty or 60000 people think we're not providing good education.
What do you think Morgan.
Added an old saying I'm getting using here penny wise dollar -- I think I think that's -- this debate is about where student loans -- -- concern there's two reasons.
That I don't think we should let interest rates rise the first reason is we're only talking about subsidized Stafford loans which are paid for.
By the government as long as the borrower is is in school also these are essentially -- raising the rates on taxpayers more spending by taxpayers.
The second reason is because.
Un subsidized Stafford loans and private loans this has nothing to affect those and un subsidized Stafford loans are already at six point 8% interest rates it's not making a difference.
On the colleges people -- Marino we're not talking about pennies here we're talking about millions and billions of dollars and is as rich pointed out you know about -- the entire student loan problem.
Could -- to trillions of dollars of debt -- taxpayers.
-- and -- the entire student loan problem that we're actually talking about here right because it's government intervention that has allowed all of these colleges and universities to drive up their tuition costs of these obscene levels.
That -- push out.
I'm kids who can't afford them.
I'm look we have -- we have people owe more -- -- get these days in a few in credit card debt inning -- this is something is very concerning the idea that you.
And your job market today.
I'm only about -- we have one trillion dollars worth -- a student loan debt that's sort of unheard of for a country like that.
So bill I went to breed is saying is that sometimes these government lousy subsidized government -- sort of leverage up the price for everybody on what college -- yes but you don't have to sucker -- the innocent students with the doubling of their interest cost is another way to get taxpayers off though it's very simple.
You have the colleges guarantee the debts because -- would be a lot more careful about burying people.
With 50000 dollar graduation debts and lot more careful what -- -- good exit.
Would not very voluble degrees like anthropologists -- that's -- where -- how far.
-- -- -- -- Is this your loan rates a -- about -- what about putting the onus on the colleges rather than taxpayers.
Yeah I think that's probably a pretty good ideas always bill finds a bank shot to make a good argument.
But I think you know again I would go back to the point where the online.
Opportunities and they under use community college resource is in this country there -- so many ways.
That people can bring down costs and still have a first class education and that's -- we should be looking.
Morgan you wanna get it going in the senate Republicans propose something earlier this month and I'm -- for and that's tying interest rates to the treasuries which we do and all of our other types of -- loan interest rates I say we do that and it would.
Actually lives war but the problem that Steve is that as we mentioned before it is rich mentioned.
These are risky loans very often for the student loans you don't have to give a credit history like you do for other loans that's why there's so risky.
Yeah and this is why I think Sabrina is right we got to see this as a whole thing and not just the specific issue interest rates.
The government is driving up college costs which has kids leaving school.
Like a it's servants who have working for the government for ten or twenty years.
Instead of going out and having a great career they start with a mortgage -- a house I got to point this out there you know because I think it gives total proved my arguably got two people sitting here.
Both very successful both very Smart both anthropology major.
And both of -- -- had student loan and now I.
No wait a minute -- guess what I have to go to the -- so I've made the decision to go to the cheaper -- and I ended up doing is playing well you did but you had a student wanted to do it and its rich pointed out he spent two years in the community college and therefore he got a good education and didn't spend an extra fifty -- 100000 -- of the David Edwards and an avalanche.
I think marriage would win that debate are.
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