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SmartCredit.com Consumer Education President John Ulzheimer on student loan debt and a report that 10 million households do not have a bank account.
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In focus tonight the growing student loan crisis.
Number of students -- taking out loans that is backed by the federal government as you know -- skyrocketing but so was a number of students falling behind on payments.
According to a recent report one in six borrowers are currently in default.
Which leads to the question who's responsible for all its debt the colleges the students.
John Alzheimer president of consumer education for Smart credit dot com is actually here on set he's not hologram -- they're a real person.
So this story.
Our attention because -- death really whining version of it in the New York Times and which they said that.
All of these debt collectors we're going after these poor students and collecting the money they.
Of course they -- it's -- to collect state -- defaulted student loan debt and it is to just to collect for example to falter credit card debt.
Student loan debt is going to be paid -- gonna pan triggering a die with -- it's its -- Hawaii cannot discharge in bankruptcy -- you have some.
Really catastrophic problem and and even then it's up at the fight.
So -- of the day you have that choice do you get into the debt it's voluntary right I -- on hold a gun to your head and says he will take out 90000 artist who don't want it to get this masters and -- Right that's -- -- that's the challenge OK so.
Go with me here because I think at the end today its income students who have to be more responsible and decide hey given the job that I want that eventually -- what can I afford to pay out.
I I don't disagree with you but like -- These are eighteen year old right you just got finished telling all the paperwork to get your college -- -- to the college of their dreams it's also extraordinarily expensive and it feel like based -- makes you have to go.
The parent has to step in and -- -- Time -- let me tell you what is going to happen after four years you were going to be in a mountain of debt.
What do you think of community college or something local state college future -- dying then transfer to the big time college and get the degree with a nice symbol on -- Blood says it's a good idea but boy hat that was a funny story I am right now when I both laughed at that.
Ask you about another story that also caught our attention FDIC report from the federal government nearly ten million US households do not have a bank account.
More and more people outing in getting out of -- the official bank system.
And doing other things what are they doing and is this a good idea it is.
It that is bad news that that really really concerns me any -- It a lot of people are leading voluntarily a lot of we're getting kicked out because they don't know how to properly managed bank accounts the banks sank to four washing our hands -- -- you know he's so open end.
The prepaid debit card -- -- so open an axis of finance that -- -- We can -- on banks and nausea.
In the cows come home at the end of the day you want to have -- a nice relationship and a bank he need to be part of this is you have hit hard outside -- the system because at the end of today.
You -- -- credit score you wanna get loans you know wanna buy -- house trying to have kids all of that takes money in the only way to do that.
I brought a bar someone else's money to buy -- and write a big fat check in at the end of the day I've got to have a relationship for the bank and it's not a right I've got her bonnet.
I can't wait ten million people -- accident affected just -- -- where they're gonna get their funds from how expensive it's going to be.
More small banks have fortunately they're going underwater to China alzheimer's every time you can -- got a call us and come on set I love that -- to be here.
