Also in this playlist...
This transcript is automatically generated
Right scary joining me now -- Amazing how much money is going into the student loans right now college loans and while on the -- -- -- good.
A lot of people would argue this is a massive ticking time bomb right.
Thanks for having me on -- -- -- something we've been watching over the last couple of years really because as colleges have increased their costs.
Most of that cost has been transferred onto the consumer -- this student in a -- student borrowing because they don't have home equity loans.
And -- since or even borrowing on credit cards to pay for college.
And at home -- me they're borrowing on credit card so it's no surprise to see that the debt numbers are rising.
I you know it's no surprise -- I guess that'd be the debate and hearing your expertise -- impart.
Higher education at some point.
It is it worth the risk and by the way.
I also want to talk about the risk not just through the students because I think ultimately that isn't -- taxpayer possibly on the hook for four billionth about a trillion dollars.
Well I think the latest numbers that we've seen in this list from that third quarter report put out by any art Federal Reserve Bank.
I think that the number was about 870 billion but I believe Charles that that number.
Included not just federal student loans are federally guaranteed student loans but other forms of student borrowing as well.
But but but but give the rest -- evidence is what I think we're concerned about because.
Everyone keeps saying okay you know there's a lot of money blown around out there now we see a strike.
And sub prime auto loans I don't know that that's gonna -- -- the economy but we start talking about a trillion bucks.
That may not get paid back -- -- a large portion of it we've got to be worried.
Now -- it is something that me we are worried about in -- the reason we put out a recent report called the affordability crisis we are in fact wary because.
Far colleges who don't have the money to offset the rising cost.
It's really incumbent on students to borrow for the remainder of the cost right now I think this statistic that we see.
Show that student dad is actually the number one form of consumer debt and our economy.
Followed by credit card debt and then followed by on -- lines.
-- -- -- -- Mary I've seen charts over the last 1020 years talking about inflation.
And nothing I mean there's nothing comes close to tuition fees.
What I can be done about this why why why are these universities why -- they need so much money wire professors getting.
More money every single year taken that sabbaticals why are they in this position.
Particularly because they always come across as you know so caring and understanding about the circumstances of the average person.
Right you know it's interesting because for higher education -- -- a particular index called the higher education price index.
And it routine me exceeds the rate this CPI so it's always high here.
They inflation for higher education costs than it is for general inflation.
I think the reason people Mastny -- at number of times why are higher education costs escalating so much I think.
For one thing is it's very expensive to provide some types of education now we're seeing a growth.
In what I would call cheaper -- -- education education that's cheaper to provide -- mean you could look at the growth that Community Colleges.
You can look at the growth of some of the for profit institutions on by the way.
A lot of this student debt that's been issued has actually been issued for students who attend even that cheaper forms of higher education a for profit institutions.
It's a real complex.
Diverse -- Seventeen million college grads doing jobs that you don't need a college degree for busing tables.
Parking cars as parking lot attendant -- It is it still is it worth the risk is it worth the risk for the individual taking alone.
For the taxpayers who ultimately could be on the hook for this to continue at this rate of paying this amount of money for college tuition.
We know it's interesting Charles because that data in the reports and I -- show that it really does still seem to be where things.
I -- to pursue a college degree I mean we -- saw that inflation for college grads aren't aware that unemployment rate.
For college graduates during a recent recession -- actually much lower.
Then it wise for high school grant itself from from that the data that we see it in fact it is still worth it.
It's just how do you get over it -- rising costs and and as long as college costs keep rising.
I think we're gonna see that -- -- student debt continue to grow as well.
And you know what and there are going to be people worried about that ticking time bomb aspect of it because someone's -- ultimately pay it in a disputed campaign that maybe will be on -- -- -- thanks so much event fabulous -- eloquent dot up recipe we appreciate it thank you channel.
Filter by section