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OurTime.org’s Matt Segal on student loan rates being kept low, and the ability to claim bankruptcy for student loans.
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Tie -- with us student debt hitting record levels is over a trillion dollars in outstanding now.
How will we painful all of this.
Another new development design is that now congress has introduced legislation that would allow you to wipe out student loan debt through bankruptcy.
Interesting stuff.
Matthew -- from our time dot -- is here Matthew welcome back good to be there now.
This -- -- this issue festival the president and the Republicans they going to keep.
The interest rates on student loans -- student loans down 3.4 percent.
That will cost six billion dollars.
We know how the Republicans will pay for it that would take the money out of Obama cat how will present my 4% of you approve of this -- fair enough.
-- hop -- congress -- it couldn't.
Be clear on that the how to pay forty issues and debate but finally we saw a rare moment of bipartisanship -- -- Romney and the president both agree.
That.
Not raising -- doubled student loan interest rates is a step in the right direction for our party debt strapped generation but it has now people.
Yes now in terms of how it's paid for there's been discussion on closing tax loopholes -- -- something -- intersect.
My generation actually supports this notion.
Of one dollar in revenue for every three dollars in cuts which the nonpartisan and bipartisan.
Simpson Bowles commission came when we use -- highlight its belated second I'd like the idea generation you so -- -- everybody else I'm looking at what I'm looking at polling.
Okay and I'm saying of course you know -- speaks for an entire anything.
But if you look at the broad consensus.
There was wildly popular support for that notion.
All of a little bit of revenue and with a bit of -- people want a consensus in this product I think we can take it -- you look through real issue is at college.
He didn't college access and affordability -- -- You want follow -- student loans now that right as what you want.
I don't want more loans I want.
More affordable education.
So -- want do you want colleges to get the cost down.
Yes absolutely why have -- so far a couple of reasons this is a great discussion 147.
States have cut public funding for education.
Two colleges are not always using their money well there is just an outrageous story and I'll agree with you hear that the University of Florida.
Cut one million dollar from their computer science department while spending two million dollars investment.
In their football field and in the I'll -- came -- they cannot and now -- but while that wait a second.
Record.
-- and generations for college is -- money goes back into the universe what is the most likely career field to get a job today -- computer science.
If computers on why are we cutting computer science.
Computer science will need to job placement for graduate looked -- -- -- engineer our best part of -- generation.
The cost of a college education is going straight up.
Yeah continues to goes cigarettes outrageous I agree with you don't want to outpacing the cost of living I wanna know why we should keep subsidizing student loans and we -- to the tune of billions of dollars a year -- colleges will not help the basic cost of going to college it won't do it Walter I'll tell you something I support.
I think colleges ought to disclose.
Job placement statistics.
And obviously debt levels for graduates so that the consumer can choose.
More visual lately I'm I want I wanted -- college or why college based on the amount of debt I have.
And the -- and and that tendency for graduates to get jobs and make when they leave school but -- Would you suggest would you support a move that -- walked up yet that -- let me rephrase this there was an article in the sun times out of Chicago.
Showing that if you went to certain -- a college courses.
Your chances of getting a job that would pay off your debt was slim and known.
In other words they wanted to push people towards courses that would result in a tangible job of the -- and which would pay off the -- -- in favor of that.
I think.
It comes down to personal decision which is something I think we can all support you need to have a decision with your family and your friends and you need to say.
Look is this career right for me am -- likely to get a job when -- graduate or not history.
Some people haven't attacks sociology Milwaukee action architect of differences in a liberal arts education their historical basis in our country that if you have a liberal arts education -- -- your talk criticism how to analyze problems.
All kinds of solving of issues that need to skillful placement to become lawyers and to become public policy makers -- become.
Almost in businessmen great businessmen who majored in the liberal arts diligently -- substance.
But we did -- -- -- and we will wait a minute.
We're subsidizing the debt the interest rate that is paid on college loans why should subsidize but it but it is inferior argument to say that people should not pursue higher education in our country when we're gonna be more competitive internationally you know they are -- -- about subsidies.
You've got a government present which subsidizes student loans and we've got it for -- but is typical of this country and on other countries how can you possibly withdraw some kind of entitlement some kind of subsidy.
You never can.
Once you've got it you've always got it and your generation's gonna have to -- Our generation.
You back when our parents went to college my parents went to college of 87 dollars a semester for public universities now it's ten to 151000.
Because everybody you didn't feel they were entitled to go to college now please note regarding government -- to go to college now have been you know we're government subsidies that are out there at the higher the -- -- -- goes up.
Can afford to go to -- subsidize it will also says -- Dominican a -- day because this investment in public education.
And a lot of that actually have to go to voter turnout.
If my generation turned out to vote in greater numbers politicians would be funding.
Education and got a -- volume trawler and its other than -- it was ten years -- -- again what that is the government more involved in the got in the long process for students say that let's look at South -- money where you -- hello hey wait a second if they dominated -- -- -- not allowed -- today it's all government additional thousands die and that's -- -- -- -- -- second.
Now that's for all you want as the subsidies subsidies subsidies and July subsidy I'm saying.
That people obviously are taking out enormous personal debt to go to school because the government's been driving up the price of tuition governments are driving up price of tuition SEC colleges.
Subsidizes the -- and why is it going -- cut deep a lot of reasons one like I said that every school is using their money in about half the cost of learning -- class you can take.
Eight YouTube course now from people like Solomon kind you can get free to wait a free classes online at MIT C.
And -- I agree.
But so.
Meanwhile while the cost of learning this -- why has college gone up well because colleges are in this race to the top for prestige many times.
Until they're competing to have the most for speed which they know build the biggest buildings and they have to have the biggest football field you need to deal there numbers but there -- some -- Let's hear what I'm standing here subsidies subsidies encourage people to take out loans which they -- and why should -- not encourage people to go to college that's my questions -- why should -- -- -- deal and I don't wanna pay for -- that's why you know what you -- subsidy program you can never -- work -- paid back when we're qualified workers who can grow the economy and innovate once we have an education but it's not walking -- It will be it's not working we inherited when he something inherited debt to 24000 dollars point 8% compound -- -- -- -- trillion dollars in Hispanic and now we've got legislation that will allow -- to go bankrupt so that -- have to but it is a mathematical back.
He is a mathematical fact.
-- when you have a college degree.
You are likely to have much larger lifeline that's I can't see that -- it that is not yet know how relates to people of a different -- -- cannot current agenda cannot take the last two to three years in the recession.
In say that that will dictate everything.
There's historical precedence for this that you cannot ignore well.
That subject -- good -- after we have a FaceBook comment that I can get to yes we do it together we've got to have a FaceBook viewers are watching on this and -- -- we -- Greg -- this.
You know -- on human -- week when you have an.
