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William Brewer, National Association of Consumer Bankruptcy Attorneys president, on student loan debt climbing and why this may be the next major blow...
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Billion dollars for the first time last year my next guest says -- -- -- debt could be our next dead bomb for the US economy.
Joining me now is William brewer president of the national association a consumer bankruptcy attorneys.
Mister brewer.
We know it's a trillion dollars now and we know it's very dangerous everyone sort of throwing up the warning signs just give us an -- To what degree is this a ticking time bomb.
Well it's a ticking time bomb it is very similar to what.
-- bankruptcy attorney -- in 0607.
With the mortgage crisis where were saying.
We're getting over extended here we need to do something are warnings went unheeded.
Where once again the canaries in the mine shaft because we are where the ones to see people in financial distress -- Com and and the problem is there as tuition goes up as more and more people are having to borrow money to -- go.
And as they reward from having gotten education.
Diminishing somewhat for some people -- -- find jobs.
They get laid off after the find a job the default from going up.
And damme.
And again is going to be somewhere to the mortgage crisis in the sense we're gonna have more and more defaults.
OK so you -- this -- 20062007.
Housing.
A year later that you know what hit the -- -- we talking about some sort of major catastrophe within a year because a student loans.
Well I you know I don't want you know where it with the mortgage industry you know it it's is repercussion -- -- almost immediately and with respect to.
The -- -- the building industry and that kind of thing I think the student loan crisis.
Is gonna be more long harm from a standpoint ultimately.
What's gonna happen special where there were spread with respect to how people have to do what their student loans.
It's gonna eventually.
Have a negative impact on people borrowing money to go to scope.
And -- don't borrow money to go -- go than some of our best and brightest.
You know did we we we don't we don't get the resource are human resource as we need -- to compete in this global economy.
So your bankruptcy attorney but it sounds like you're more worried concerned.
About the intellectual firepower of this nation than the economic.
Sort of that we connect the dots the economic impact but.
Let's think -- the economic impact for a moment we know what happened when housing.
-- the epicenter of this current meltdown if fed decision alone situation does Begin the breakdown pretty severely what does it mean to our economy in general.
-- in.
I'd like -- -- reps -- lawyer I'm not an economist but but but very simply that simply means you know.
More and more did defaulted debt simply means that money's not going back -- to our economy.
I would say my concerns.
Are first and foremost with those people -- represent.
I -- people who come -- to my office who need help.
Which student loans and they just can't get it.
There's -- treatment of student loans.
From a collection standpoint is is draconian or as it yet it's that there's no statue of limitations for student loans.
And -- darn near impossible to discharge them and bankruptcy.
Arts and isn't there William right now the federal government's just -- announced that a loans like crazy it just did that just -- -- -- 27% in the population.
Has a college degree the rest of them don't.
Are are you suggesting.
Some sort of solution would ultimately be for the 73% of Americans who don't have a degree to somehow bite the bullet.
For those who do have the -- a degree.
-- you know I don't know that the 73%.
Who don't have -- will be biting the bullet.
-- the bullet.
Is bitten from a standpoint of if someone came by a student loan they can't pay a student loan.
And no matter what policy there is that loan is likely not get -- We have saying down on North Carolina where I left that you can't get blood out of a product.
And these folks many album -- products and they're never going have to buy the trouble as they can be -- -- To the great -- literally to the grave.
About having have to pay a debt they can't.
You can't give blood out of a -- -- that's that's really a universal saying but now what does a fantastic topic it's a scary topic and we're glad you're sure to what -- William brewer.
Of the national association of consumer bankruptcy attorneys thank you very much.
