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Common Core Executive Director Lynne Munson on what is needed to rein in the rising costs of a college education.
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-- -- While the economy still reeling from the effects of the housing bubble -- the next -- is already here student loan debt.
Soaring to get it's almost a trillion dollars 904 billion that's according to -- New York that that's an increase of nearly 300% over the last decade.
Joining me now -- months in a former adjunct research fellow at he nonprofit center for college affordability.
And productivity.
Meanwhile continue what are your thoughts on this soaring level of student debt to you see it is a bubble about to burst.
I do see it as a bubble about to -- -- -- I think there's definitely.
A perceived irrational relationship between the real cost of higher education today and really that the perceived value of a degree.
You know I think.
The cost of tuition has been escalating since 1980 it's gone up by ten times 1000%.
You know if we translate that and other goods you know the price of gas would be thirteen dollars a gallon today.
Exit cost nine dollars for a dozen and no could be 22 dollars a gallon you know who would who would pay for that.
That's outlandish and those comparisons a fascinating but the problem -- -- federal government with ease student loans and -- interest rates are kind of subsidizing.
-- the college costs and they're able to raise tuition prices so what needs to be done to cap that.
But it's true that that the government subsidies are -- terrible problem and you know politicians really need to stop falling.
For those bogus pitch from the higher red blobby one of the strongest in DC.
That more subsidies are needed they're not you know the blame really rests with the higher education leadership in this country.
And that access that they have engaged in the inefficiency.
Of higher education and it's really lack of responsiveness.
To public me.
So is it up today universities the educational institutions to -- to -- costs or is it.
Part of the government's job to because we know -- running up against July 1 deadline where congress -- -- doing loan interest rates are going to double.
I mean in the politicians definitely need to find their courage there's no doubt about that.
Everyone wants to look as though they're trying to address the problem of runaway tuition.
But they keep making this mistake of just -- expanding the subsidies and no that's never going to work.
But it's true all so -- -- -- -- diversity leaders need to step up.
And do things like death and said there college -- -- university endowments which is a pile of treasure.
Larger than any any nonprofit institutions.
Set of institutions have ever -- in this country.
And do something to address these these escalating costs they're 74 schools today with endowments larger than a billion.
And this is obviously far beyond the ideally 25% of them are in fact public institutions.
You know you -- -- -- raise funds.
You raise the question earlier in our conversation about the value of the degree he think there should be some correlation between how much money you take out as a student.
In creditor it.
As a student loan according to your course of study in other words if you're planning to major in something that you know is going to be tougher F he'll talk to find a job -- -- beaches got as much money and it's.
Kind of debatable.
Honestly I don't I really think it's up to individuals to have the freedom to make those choices.
I think it is legitimate to -- degree and master of fine arts degree for example.
I don't think we need just a nation entirely full of lawyers and MBAs I think would be -- for it.
But I I I do think that between politicians -- their courage and Calgene university leaders really being compelled.
To spend the date of this treasurer.
We could get closer to a solution -- certainly Wear it today.
You know another issue regarding student loan debt is that it is not forgive a -- in bankruptcy should it be -- help things.
Well he used to be I did say I think bankruptcy you know that's so far at the end of the problem for for individuals.
It's too late it's I mean it's is it just doesn't make any sense to oppose.
The problem from a policy perspective.
-- by just talking about bankruptcy the -- It needs to be approached from the very start of it and that's that they're really that the crazy numbers that they put on the cost of of higher education today that's the real problem that's the source of the problem -- to the extent to which this discussion goes on.
And doesn't include -- We're never gonna expects.
Hate to leave it there -- but thank you for your for your insights on the topic -- months and student loan debt the next bubble to burst -- talking about -- yes.
