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-- are ramping up his bush helps students continue getting low interest loans the president is calling on congress to stop rates from doubling the nearly 7% in July.
Well -- student loan debt topping a trillion.
Dollars my next guest says maybe time to turn the spigot off.
Friedman foundation president CEO Robert and Lowe joins us now Robert good to see -- -- coming it's a seven.
Point four million students would be affected immediately if these rates -- it would happen by the way in July right before the elections so.
President Obama once those -- that's one of the big reasons he's pushing for this now.
Absolutely you know it's really tragic they were politicizing initiative so important and must also be very clear road they're here.
We're not talking about a doubling of the rates the rates were reduced in 2007 to 3.4 percent from six point 8%.
All the we're talking about as those rates going back to the 2007 -- which by the way were said by com.
-- anyway but you don't have a lot of -- setting when one kind of governments have programs starts it's so hard to get rid of this just shows that we've all known that this is an example by the way.
I don't -- -- let Republicans off the hook either because they want to -- two point or seven point four million votes as well so they are unlikely to stand in the way of these these rates staying where they are artificially low correct.
Well that's exactly right you know look.
We've got a situation where the the rates are fixed by congress.
The loans are provided by congress you have a monopoly situation you know.
We live -- one -- most -- societies in the world except when it comes to education.
Now why shouldn't maybe there's a simple explanation -- as you can -- -- but.
Why shouldn't colleges.
He called in to for some kind of responsibility here I mean why is it always fall on the taxpayer if a guy doesn't pay off his loans to the -- he's -- to.
Don't colleges have a certain amount responsibly for get -- money back.
Lastly colleges should be more responsible individuals should be more responsible but really this is coming about because the federal government is basically giving free money.
It's giving yours and my money and it's gonna continue to do so for the dream of having everyone go to college education and that's great.
But if you look at it -- 40% of the kids -- are going to college don't get their bachelor's degree in six years.
We have no metrics on how this money's being spent.
You know what if we were to say okay you can get a college loan at 3.4 percent but only if you graduate in four years or did you graduate in five years.
For three years to measuring three years -- rates 2%.
That -- -- there's lots of ways to -- satisfies this incentives work out as it is we're creating a new generation indebted to the government right.
That indebted to government and you and I as taxpayers are gonna pay for that that's another one trillion dollars on top of the 103 RD out there in.
It's just gonna create this huge education bubble -- then go back to K12 education.
Because when kids get into college or spend the first year were mediating anyway a lot for a lot of kids.
You know we've are your double paying education from K12 all the way through and the taxpayers bear the brunt parents I'm halfway through pay for my daughter's college and I'm.
At the same time Paper body else's that's the way it is right now are Robert and low Freedom Foundation that named after the good guy -- -- good to see if.
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