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Student Loan Debt Hits $1T

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  • Description

    FBN's Liz MacDonald on the White House taking note of spiraling student loan debt.

  • Duration 2:36
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Hang on the assets right yes.

Our -- truly alarming development student loans are passing credit card and auto loan debt.

Now above a whopping one trillion dollars this startling number has now reached the level of the White House Liz MacDonald joins us now with the details so.

Who the White House is taking note the vice president -- Alyssa Miller vice president Joseph Biden is saying about this very issue.

Tuitions have gone up -- potentially.

Over the last twenty years about 300% of I'm not mistaken.

-- -- -- This year periods.

Can you weren't -- that perfect storm.

So we should have to do some about it.

Yet taxpayers could be in that perfect storm too because eight out of ten.

I'm a student loans are either government issued -- government backed so the issue is as what is causing the rise in tuition cost.

Moody's analytics this is saying -- sense that look it's not cost effective -- -- government subsidies.

Because college tuition just continues to go up and we've even got talk to people who did research college college -- people the College Board -- that the third of the increase of the rate tuition is due to financial laid.

So the president wants increased increased tuition tax credits.

But at the same time we see colleges doing things like behaving like Donald Trump.

Hotel finance years that that as if they're running a hotel empire and -- spending a lot of money.

On college -- like white elephant college football stadiums or you know five star restaurants for their cafeterias are great -- And the issue is is that the -- it is that there would be the reason why tuition is going up.

Is it also because -- -- student faculty.

Ratio is now lower than student to administrators is more bureaucrats in colleges than ever before.

So what's the solution -- what is the solution I mean there has been serious debate because colleges -- -- tax exempt status in this country.

So in other words because they get more financial aid and and -- -- they rise it raise tuition.

Then more financial aid is needed for that tuition -- do you reduce the level of their income tax exemption by the rate of increase.

In tuition costs though you know.

That's a tough one -- but it is certainly -- throwing more money at the problem the solution that's our question I don't and there are a lot of people that are wondered relieve the value of a college education right now when you see so many people getting liberal arts galleries in the coming out they can't find -- -- it was sort of what was all that war Vietnam right Melissa you know -- -- -- parents out there.

Are doing this are sending their kids -- two year community colleges and and switching them to blue chip.

Schools to get our tenant -- we get back to vocational education and -- Liz MacDonald thanks so much for joining us.

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