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FBN’s Gerri Willis on the rise in student loan debt and its impact on students, the government and the economy.
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President Obama back on the campaign trail today promoting his plan for the looming student loan debt crisis.
This country has always made a commitment to put a good education.
Within the reach of all more willing to work -- that's what makes us back.
That's what made us.
Economic superpower.
What kept -- that the core run a business and -- And technology and medicine and that's a commitment we have the real -- But how much should we spend.
Student loan debt a huge problem now over a trillion dollars more than credit card or auto loan debt in this country.
But the -- solution extending the super low federal loan rate 3.4 percent interest right now could double.
Obama thinks we should spend six billion dollars on a one year.
Election year -- pay attention to that now this does nothing to address the rising cost of college.
Which is going up -- -- going up that is it three times the rate of inflation.
President's plan just makes it easier to take out a huge amount of government backed debt and easier for colleges to raise prices.
But if we spend more money.
Do we get a better education.
Out -- landmark study nearly half of students showed no significant gain in critical thinking or writing skills after two years in college.
House that -- value that's awful.
These students are having trouble finding jobs because they don't have the skills to work.
So where's all the money going well.
Check this out the university of -- GM.
Boasts an indoor river and waterfall.
Surrounded by -- -- that's really nice looks like you're on vacation right.
-- what's the point.
Are you going to learn about fluid dynamics I think I -- What's the lesson here today schools are an arms race building fancy new facility is vying to win over -- more students and their government backed loans.
It's the new entitlement.
Go to apparently school goof off and let Uncle Sam be responsible for the bill.
The rate of students defaulting on their loans has been going up every year since even before the recession hit.
This could be the next debt bomb and our economy has not equipped to handle it.
Not went eight out of ten student loans are backed by the government it's time to hold students and the schools accountable.
Throwing more taxpayer money at the problem.
It's never -- solution.
At.
