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Fmr. Secretary of Education on Student Loans

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    Former secretary of education William Bennett on what's driving up student loans.

  • Duration 3:44
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On the front.

Some of the world's biggest business lines descending on Beverly Hills -- too shabby for the -- -- conference not to shabby at all David -- is out there with.

One of those people right now William Bennett take it away David.

Thank you very much guys -- Bill Bennett was the secretary of education course and Ronald Reagan's administration.

And would the issue of student loans really hitting the newspapers -- we thought we bring amended talk about.

What is driving up student loans between 1982 -- -- good to see building talk about your book -- a moment thank you between 1982 in 2008.

College tuition increase.

439%.

That's four times.

The amount that inflation went up.

You see a connection between that -- that incredible escalation costs and federally subsidized student loans what's the connection.

I mean does it.

At the end of the federal government subsidized -- -- get more of it I mean I think so yeah I said and 87.

Apparently this was -- -- discovered.

And I said the more we make Federal Student Aid available the more tuitions -- book where the prices for the book.

-- -- 25 years of growth supply we're waiting to believe it may be true you said -- an 87 you where education's secretary then why couldn't -- about something about it because it could secretary has a great title at a nice car but really very little power now they're trying to do so a lot -- that the Obama administration.

But I didn't want him more power I was happy with the Mike couldn't you have done and -- -- from -- some other secretaries couldn't you have sort of eliminated your own position Alfred minded that did that with the CAD with a similar not export.

I couldn't Ronald Reagan couldn't and in fact Lowell Weicker out of remember Lowell -- senator from Connecticut.

So I'm not gonna confirm you to be secretary of education so Ronald Reagan sends me a letter saying that he won't abolish.

I went present nice that you can abolish it I don't terrorists have this job and no I don't have the votes to get rid of it this in the Reagan revolution.

He said maybe you can makes sense sort -- -- -- so whoever can change is if we know.

That federally subsidized student loans increased costs because colleges can do what they want -- tuition -- -- sure they're gonna get paid by taxpayers.

Who's to stop that the consumer -- in the and the consumers and that won't happen right away but I think it's beginning to happen.

People are now putting it together -- costs us on average we borrow 170000.

Dollars of debt -- should graduate.

We got a trillion dollars in student debt out there.

You pointed out the other day all the college graduates half of them have no job at all or have a job that they could have gotten with a high school diploma.

They put off marriage they put off buying -- house.

Is it -- and so now the hard questions are being asked.

And I think some people are gonna look at it may answer the -- say there may be a better way so you think that your customers will boycott I think they'll have to because they'll doing.

Cost benefit analysis.

There's there's a certain magic about colleges and we all know at least to say back way back in the eighties you know we're running out of people in the family to put to work to pay for the Jewish business and its it's worse today that means that the colleges.

There's a debate -- right now.

But we're gonna keep to have the subsidies low pretty since -- -- subsidy hide in the interest payment low for the student 3.4 percent.

What I've said is if you keep that 3.4 percent -- think the university's school described by keeping their tuition level.

-- no they never have they never will.

-- got to promote the -- yes please let's look of man is that name of the latest book that you bring you've written about 500 books of 500 -- escorting the -- kids what -- books what does this book about quickly this is a book about the condition of men and how we need to get men back to what they used to be.

They're not cheapen up the need to shape up and do better.

Bill Bennett wonderful to see you -- my grandmother much for being here.

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