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Student Loan Debt Soars to More Than $1T

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    Friedman Foundation CEO Robert Enlow on the rise in student loan debt as well as defaults.

  • Duration 3:00
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That is now reaching a record I believe -- when I heard it really about one trillion dollars.

Nearly 9%.

Of that Barlow all those dollars are in default right now that's why my next guest is worried.

This could be the next bail out getting the votes -- -- CEO of the Friedman foundation for education it's oysters are right now.

On boy that's this money looking to its -- burn up business.

It's totally looking much to burn up it's not about whether there's a bubble is about how big this follows gonna -- and when it will burst but student debt is up.

Student defaults -- the government borrowing is now they've nationalized borrowing -- tuition is up.

Children rendering more debt and younger more unemployed the number this is a dangerous cocktail and we should be worried -- surprised I don't this statistic is.

Is accurate Robert that this.

Student loan debt eclipse is that a credit card debt.

Absolutely and in fact what credit card debt has gone down in the last few years because people more person responsible for their -- their debt.

Student loan debt has increased and why is that because in the health care reconciliation bill the president nationalized our student loan industry.

-- Friedman said it best when He said when you spend someone else's money on someone else you don't care how much you spend and what you spend it on.

-- worried about that too because -- -- more it does lessen the stigma attached to defaulting on anything these days by the way.

On so for a lot of students many of them and in the -- -- Wall Street crowd.

They're probably -- Wall Street got the big bella.

On.

I want mine -- and -- other words are these prior rescues.

Actually.

Fostering this mentality today go -- walk away.

Well absolutely I mean that's why default rates are up and why people want there are a loan forgiven.

But the fact is is the taxpayer in the economy is the one who's in trouble here we keep going on this road.

Just think about what happens if you forgive all the student loans.

People delay purchases in their homes or delay cars people in mid thirties and forties and of having debt the size of their mortgage.

You know no personal responsibility means no no long term economic growth.

You know what -- worry about too is it just feeds on itself we're looking for another mortgage rescue program and a widening to many more eligible.

Possible as you know record on this is is shabby at best.

Now I guess we'll consider something akin to that on the president is only in his vaguest way -- -- for educational loans.

This is a runaway train.

Well it's a huge one -- trying to and that's what happens when you're spending taxpayer money in and you're not caring about the personal responsibility mine is not just student loans either think about this isn't what -- calling -- it's an education bubble.

So K12 spending has been increasing dramatically since the seventies.

And let's not forget the huge unfunded teacher pension liability.

Now we have this huge student loan debt we've got a huge education bubbles gonna drag states and the federal government down with it.

We'll watch Robert thank you very much -- -- unload the Friedman foundation for educational choice.

Thanks -- been warned that you've been warned meanwhile the president.

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