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FBN’s Lou Dobbs weighs in on college costs and President Obama’s support of low interest rates on federal student loans.
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It offset the cost it is it really gonna help a college grads can't get jobs anyway.
Lou Dobbs joins us now with his take people don't realize that when you offer more federal loans it just makes the price of college go up.
Debt that has been the experience -- there is a direct corollary between.
They offering up financial aid and tuition and -- all the ancillary costs are going to school.
It there is no relationship whatsoever between the typical general.
Inflation rate and the rising cost of higher education in this country unfortunately there's also no correlation.
Between the cost of education.
And the Euro and the resultant.
Test scores are compared to other nations isn't.
Part of the problem the lack of jobs for these college graduates -- -- a lower the interest rate or keep it low rather does that really help them in their cause to be successful in this world.
I think it helps at least at the margin.
Because we've got about.
Somewhere around forty million folks out there are still carrying student loan debt -- to see this thing doubled above 6% is crazy.
And it's interesting that only now is President Obama getting excited about it and only then -- is governor Romney getting excited about it.
Because it's a giveaway to go to voters.
That matters will be handing out hundred dollar bills and your money in mind of course -- those what -- -- it's.
Buying votes and that's -- simple but it does also at least at the margin.
Helpful -- -- we've got to go far deeper and our public policy when it comes to education.
It's entirely.
I think an appropriate role for the federal government to be in the business of making it possible for talented gifted Smart.
Students to be going to school.
But there have to be standards and there have to be there has to be some of them procedure.
That is fair and equitable but based on talent.
And skill and merit.
I mean it's become a serious question among people of our generation saying like does it make sense to send your kids to coasting -- -- it doesn't have the same value that it did before.
Now there are so many colleges that essentially -- the same.
Accredited and not an offering different values but it's also expensive.
What does it really work -- And that's really the issue because it's that the you know the time honored discussion.
You know everyone knows the price of something very few understand the value.
-- -- except in the case of higher education.
We know that it is depreciating in value now -- -- prices escalating.
But it's that.
Public institutions and private institutions right right should the federal government do you think -- get involved in managing tuition costs.
As they are with a -- no I don't -- I really do not I think at some point we have to understand that higher education in this country is an anachronism beauty is it is -- -- Outmoded by technology and and that the federal support of these outmoded -- -- you require them to be.
Efficient to be productive.
In the delivery of their product and their service which is education.
We're we're watching brick and mortar.
Providing education that could be done so much more efficient place and just every bit as well if not better.
Through modern technology.
A lot of both -- the next bubble as well is is the federal student loan program -- -- again this is that this is the next thing to really burst for us.
What's over a trillion dollars in debt and whether we style it is the bubble or are higher education itself as the bottle bubble.
Is is the result of the calls legion which is federal aid to education.
It really doesn't matter much it's unsustainable.
Over a trillion dollars in student loans out there are going to have to be paid in some fashion or forfeited either way you.
You and me we're all gonna be paying for.
And raw -- for -- we jobs.
Thank you so much we're gonna drag out here every day at this time I assure you illuminate issues for us thank you.
