Also in this playlist...
This transcript is automatically generated
Uncle Sam pushing loans on our students across the country but it's doing anything to help our nation's college kids.
One student -- -- is devising a one of the kind plan involving the private market.
And many in Washington are starting to take no -- -- A medical student attending the university of Iowa's carver College of Medicine joins me now with details -- welcome to the show it's great to have you here.
Now I imagine -- you probably have a lot of experience with student dead at your medical student.
How did you get started down this road of coming up with a solution.
Surge there that you so much for having on the so this is a huge honor -- thirty years ago I was running for national medical student known.
Position it was one of my platform ideas to help bring down the cost of tuition.
That's ultimately what caused -- student debt right there's two factors -- today you're gonna have a high.
Tuition that's set by the university or be -- high interest loan rates so few years ago we went down spoke with state legislators and we asked them what -- we do with the help bring down cost of tuition.
So clearly balloting and go anywhere we're learning more getting any -- from state to -- -- -- They had certainly had a prayer is that they're shouting out hey what's one -- the beds are it's OK I mean there's there's so many projects over got to work on this country.
So my idea that I proposed three years ago was what what are the -- and go ahead -- are talking about the part B of it the par via the interest rates.
What do medical students go to get their loans to get from direct loans from the US government.
Those interest rates Jerry.
8% for -- first 32 brand and it jumps up to seven point 8% after that.
Turn league average medical student is graduate over a 160000.
Dollars in debt and that's just the average people regret doing well over 200 failure.
And so that's a problem because that's pushing I would assume puts a lot of students away from medicine and caused a lot of how we choose.
Yeah we clearly is -- medicine what you're saying is really interesting your solution is to find people who want to invest in you.
And if you want to lend you money now -- let me ask you this.
Why -- as an investor would I be willing to give you a loan for less significantly less.
Particularly when I have to wait so long to get the money back.
That's a very point that -- are so.
Sort of -- can tell you write what I can tell you're gonna get a pretty good return your investment you're also gonna get some tax credits potentially and you're gonna be helping out the future of medicine.
I think that those three reasons are great reasons for any investor -- wanna gamble.
Shani Shani actually I didn't wait whoa whoa whoa -- A lot of investors what they want is return on their money.
Right that's what I know -- -- so if if the federal government and and -- and lenders generally are getting.
6% 7% 8% 9% why would they settle for three.
OK so do you sort of lenders register his or corporations against -- but the average investor that's living down the street from -- at the University of Iowa.
They're not even playing in that game so we treat this tuition pot right where money is gonna be invested in private investor and low enough to students at is significantly lower rate.
They're gonna get all those returns as I can do all the mess and we're gonna -- tuition -- structure after twenty years student art via the investor.
There's gonna get about a 50% return but it's when you hear the four years ago before your zero coupon bond and then after that it becomes a coupon bond that the student pays every month.
Now that's -- -- and 18% and I got sent by the fifteenth year 50% is generated and nestled in -- of investor.
So yeah really where your money in the market he really it's -- -- and the nice thing about it is it really.
It used is private well.
You know go after this issue of college debt and I'm sure there would be people out there willing to play that game and get involved.
Mostly because of sort of the charitable consequences.
And that the fact that it can help young people across the country.
What do you think -- the present system now I'm curious about what you say did you you're involved in at the present system of financing.
Yeah I think it is turn on him the senator Marco Rubio is thought about many times people on both sides -- -- spoken about it.
There's a problem six point 8% that's how much repent and we're almost guaranteed a job after graduate.
In our -- medical school again to match that it so we're guaranteed job why are we -- six point 8% and people are going into debt.
Thirties to their forties and that's causing a big issue from students choosing against Madison as we know we have 32 million new patients coming into the health care system where.
And yeah -- doctor is not enough dozen others.
And people with that kind of -- they put off getting married they put up having kids they put -- buying homes the sacrifices they have to make for that money are.
-- thanks for coming I'm -- and -- EO here a lot of fun what happened back.
All right student promised that net effect aren't they didn't promise -- that we got to thank you look at -- --
Filter by section