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Well you know the student loan debt crisis in this country is bad when universities start suing Maryland graduates.
-- that's the case three major universities including Yale that are taking former students to court for never paying back their Perkins loans now.
These are loans granted those with the worst financial situations in the country joining me now Charlie Kirk founder a turning point USA Charlie welcome back to the program.
Tell me what do you make of these lawsuits.
Well I think it's a complicated issue and people -- understand that the Perkins loans are much different and Stafford and Perkins are actually administered by the university.
For -- people that are in the lower financial brackets but.
What's interesting is that these universities are kind of between a rock and a hard place they've -- as -- to students because so many people are defaulting on these -- because -- a bad economy.
But also students are studying things that don't have a really good -- Turnaround that that's true such -- sociology class.
British show our viewers because these defaulted Perkins -- 964.
Million up 20% in 2005.
More and more people defaulting on -- loans but.
Look Charlie look I know Lear Ed you know a recent graduate -- you -- you're very young.
You're part of this world.
But shouldn't universities be more proactive about this -- why do you -- Money -- candy.
Right I think that the universities want more students to come to their of course they're learning institution but I think it has the burden -- -- young people they have to be more financially literate when they -- these loans.
They -- there's your -- responsibility I mean it's the same way when people were getting bad mortgages and 0506 people thought that they could afford.
A house that was ten times their own income right and that it's the same kind of thing that's being created the housing bubble another student loan bubble that has -- -- personal responsibility.
-- -- -- That's absolutely true and I wonder.
How much money of these universities likely to get with these lawsuits -- what is the intention to get money or they just trying to scare students straight.
Think it's a publicity stunt I mean I think University of California said that there's a very highly unlikely that kids are actually -- -- Reciprocate with him -- -- money that's owed but I also think that young people need to take this as a last send you should not take out these loans especially these.
These Perkins loans if you can't pay them back or you don't think you're gonna be able to get the income in the future.
Because student that is one of the worst things that you can incur it can't be forgiven in court.
And young people don't really realize that.
Well they they charge 5% interest rate on the -- lungs and they have a nine month grace period.
You -- the federal loans have huge grace periods you can go for a very long time without paying them.
But as -- said the Perkins loans structured entirely different -- revolving loans administered by the school's out there is this gonna be sustain a.
All -- run this kind of alone.
Now it's not sustainable at all and it's the same type of thing like I'll go back to what the mortgage crisis was when we -- Pumping in this false credit into a government sponsored initiative.
We create bubbles it's exactly -- the Morgan industry and in the ninety's -- the stock market we keep on putting in.
Initiatives that we think should be sponsored -- we think everybody should go to college we thought everybody should own a home with the same type of thing and it's not sustainable by any means.
Charlie thanks for being on with us tonight you're so Smart gimme hope for I think insurance.
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