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The government will help you pay them a federal regulator looking to help struggling graduates by financing refinancing or actually restructuring their loans.
But as -- struggling Massachusetts senator Liz Warren wants to make it easy year for new students to get those same loans proposing a plan.
That would dramatically reduce federal rates.
Her former opponent Scott -- It easier for kids to get these loans could lead to -- big a big bailout.
Senator welcome to -- -- you know it's it's -- that's earlier this week other Federal Reserve came out with its consumer credit report.
And the only thing that's skyrocketing on there are sub prime auto loans and student loans.
And the government's holding up these consumer loans and it seems to me that at some point every -- watching this show may have to pay those.
Well listen don't remember that the government took over the student loan business they're getting the money in a very small -- and charging a larger rate to students and -- getting millions of sorry billions and billions of dollars.
If you want to lower the rate -- I was part of a -- compromise a bipartisan compromise but we kept it at 3.4 percent for another year.
To think that we're gonna -- give it to go to the kids at point 75%.
I don't think takes into account the realities of the lending market.
In that there are costs associated -- doing business student loans do have a higher interest as are a higher default rate.
And as a result you know you need a way to pay for those things we got to -- a way to do all this stuff without.
Breaking the bank as well because we as you referenced will be responsible for a lot of these defaults.
So senator what what about the idea of bringing a private sector back and to let them assume some of -- risk why is a risk on taxpayers.
Who by the way -- I gotta tell you something in and and Mitt Romney kind of alluded to this the idea that student loan forgiveness was promised or insinuated to run a presidential run.
In Obama kid out there taking out 2000 a -- I cannot believe I'm never -- the paid anyway.
Well if you had a 100000 I think you're here and in good shape because a lot of these kids have.
Much larger -- to 3400000.
Dollars especially if you're in medical school for example.
Listen bottom line is this is going to be the balloon the new housing crisis if we don't get our hands on it.
This should not be a problem with the having kids refinance their rates to take advantage.
Of some of the lower interest rates as we do with our our home mortgages and the like but once again we have to find a way to pay for -- so it's not.
Being born on that on the backs of taxpayers -- really have.
No skin in the game so to speak I was against getting the and then the secondary market out of the the -- business because the government is basically as I said borrowing at a very low rate and then charging students and that keeping that float.
To go and find that -- that money just go right back into the general treasury.
So is it to lead you know the put the -- back -- into space so to speak his -- away.
Do you think there may -- way to -- the private sector -- spread some of this risk.
Have more competitive rates and maybe mitigate the damage that's already seem to be built then.
Well I think we need to do something very quickly and is gonna take a bipartisan bicameral approached actually.
Move before and I and I commend senator -- for coming on boarding and doing it but don't forget what's the real reason get the high cost of education we have presidents and teachers.
Teachers -- teach one course getting out 34500000.
Dollars president is getting millions of dollars and every time the costs go up -- student loans go up.
We need to lower costs of education -- -- you know streamline consolidate.
Get them to get back to reality as well because education you're either very wealthy or very poor the middle class is being.
Is obviously being you know crash in between.
So we got to find a way to do it together and it's not just by another handout is gonna have to be with everybody having a little bit -- skin in the game.
Yeah you know it's amazing because college costs have run I think something like five or 600% above inflation for the last couple of decades.
And you do bring up a great point you brought up a great point then as I let you go up.
The idea that you know the administration is always sort of there's always portrayed as being very kid friendly college student for -- And yet they've hiked up these rates to a point where they're making a lot of money but everyone else is taking on all the risk -- brown and that's what a guy broke wake you very much.
-- I I filed a bill that actually -- for the transparency of those colleges and universities to let people like you and me and the taxpayers know what they're charges are going to.
We gonna have full and transparent disclosure by these universities -- state schools so we -- money's going absolutely appreciate appreciate taking out the time mostly general's son.
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