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Rep. Hansen Clarke argues the Student Loan Forgiveness Act will give relief to students not able to make payments and create jobs.
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-- island on Tuesday about calm down -- listen to this is all okay great great story democratic congressman Hansen Clarke of Michigan.
Introducing a new bill that we're forgive.
More than 45000.
Dollars in student loan debt after a -- -- makes ten years of payments.
-- just 10% of and com congressman -- Joins me right now integrated -- to be here could go then picked forgiveness loan -- congressman pig then it's the loss.
The taxpayer.
Well -- right now we're -- a big costs right now because our student loan borrowers and their parents.
-- they don't have the disposable income buy a home by a car start their own business so we're losing jobs right now by -- reducing the student loan debt.
My point is what this bill all the -- -- that's this requires a mandatory repayment of their student loans according to their income for a period of ten years.
By that time that loan is likely going to be paid off if there is they balance will likely be a very small balance that would then be eligible to be -- Yeah but that's why it -- -- want is what I don't understand the limit that you set though.
Is well above its more than 45000 dollars in average student line that now.
Is only 25000 dollars and when I said the tax Payer.
The federal government -- backs or loans the vast majority of student -- -- in this country so yeah you're forgetting that if you're forgiving that debt.
The taxpayer ends up eating that.
Well here's what happens the text here right now.
Is on the hook for trillion dollars worth and not get any cannot do probably no I don't know we're not I have -- an individual bar half yeah back here yeah.
It.
These borrowers are not be able payback they're defaulting at record rates.
So we need to find a way to give the borrower a chance of paying down pay off their -- majority incident I'm paying this is exactly what I majority of Pitt former and existing students.
Are paying their -- back.
They're not defaulting they're -- they're not every part yes they'll faults are increasing at a higher rate than ever before parents that they -- are struggling right not a pit.
So if our well the -- why aren't -- able to pay down these loans but that taxpayers on the hook right now.
-- the borrowers are not able to pick up these loans.
The taxpayers have to pay for my van did she think this theory -- -- not -- -- I checked it did you know 45 -- another -- of the why not just -- -- -- -- responsibility.
Because that's not responsible everyone should be able look -- down on their debt according.
To what they make.
But also to their already -- -- and I just didn't have that.
-- that I -- went -- the congressman.
Incoming phase three payment.
You can get you can only pay back 15% of your and come and by the way your 10% is less than what income based repayment is today.
See your email here and play it and even -- them to repay yet.
I make it easy -- -- so people can actually have more of their own money that they make.
To invest to start their own business the -- -- home the -- -- current that's how we create let me hated this data from an economic stimulus.
If you -- if you.
Make the student less price sensitive by forgiving this amount of debt.
Then college costs won't go down big colleges will continue to raise the price of college this ultimately will not bring down the cost.
The cost of college and ultimately encourage people to take on even more debt if they know that 45 -- that it will be forgiven at no.
Axel absolutely wrong -- the matter of fact my bill actually puts a downward pressure on tuition rates.
Because any new loans that are taken out would be subject to a cap on how much.
The loans could be forgiven for that means borrows who borrow less money.
Pay off those loans according to their income -- likely have that that completely paid off that a put a downward pressure on tuition rates.
And also to that tuition rates are going up because state and local funding for our state universities have had dropped because our.
While we're on the other side I think it's -- crazy -- are proud that each credit is so cheap and easy just like in the housing market coming straight from the federal government.
-- encourages people to take on more debt than they'll ever need to be able to pay back.
Console we have to -- okay I do agree on real.
I can't have a -- oversupply but we need the -- reasonable way to repay these loans -- To create jobs and help give our Stanley some help right now they need the help congressman you're welcome back and we can continue to debate that's congressman thank you for being here congressman card there's little debate one trillion dollars and that is -- I may help the economy meant Americans -- make it.
But today.
