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Right interest rates on student loans are set to double on -- -- believe it or not unless congress steps in now the house passed a bill last month to totally witness.
The senate of course has yet to reach a compromise.
-- busy with immigration I guess.
Our next guest -- sponsored the house bill and says the best thing for students is for the government to get out of the business of setting a loan rates.
Joining us now Republican congressman Luke -- and Indiana I mean that's really the problem here -- -- it the fact that these kids were able to get cheap money from the get go so why not take as much as I can university's Jack up tuition because they know the kids can get that free money.
And here we are.
Yeah that's right Tracy -- me that student loan interest rates right now -- just set by the next month less mud wrestling match and Washington and that that's not good for anybody we need to go to market rates -- be a permanent solution and we have an opportunity to do that we just need to send it to come to the table now.
-- let's give the animated background house passed the bill on May 23.
And the right now rates are set to go on the -- subsidized Stafford loans from 3.4 percent to six point 8% on July 1 right.
Yeah that's absolutely right we got five days here to get something done and what's most disappointing history.
Probably a one of the best examples going out of the challenges we now face in Washington.
Both the house and the president agree we should use market rates.
Both the house and the president agree we should have a long term solution and right now we just can't get solved over a few percentage points on what the rates might be.
One point two million people have loans of over a 100000 dollars out of your partially because of what we just discussed.
How do we stop this I mean maybe letting.
-- interest rates just go and leave them alone let them -- the navy people then will think twice about taking out money that they potentially don't need.
For -- philosophy degree.
-- -- -- -- Crazy you know you do make a great point we've had committee hearings on this -- -- asked so called experts whether they believe all the loans all the grants all the money.
That we pump and -- higher education has led to inflation of tuition rates.
They looked me straight in the face and said.
-- know I don't believe in my response would.
He really how could not believe and we all understand that this influx of money has led to.
You know major in in inflation and an increase in student loan debt.
The real challenge though for young people in America today is not just a few percentage points on their interest rate it's the Obama economy and the fact that as you mentioned we have.
Millions of students reading what.
Tens of thousands of dollars and that and no job in the market.
Replace him -- universities can cost up to 400000 dollars these days and to your point you come out with no job that's a really hard pill -- -- to swallow.
I have three coming up the ranks and I -- it every day so how do we fix this what's the answer.
Well I think there's two things -- and were trying to do some things to provide greater transparency for families -- families no.
I -- truth in lending statement in any universe easily you know how much it's gonna cost.
And what you're likely jobs are you said after coming our philosophy degree you probably shouldn't racked up hundreds of thousands of dollars in loans.
The second thing -- we've got to do is we've got to have a growing economy.
-- if that's the real problem right now for young people in America is too many folks and had to come home tell their parents.
That they can't find a job we need to get government spending under control -- tax reform that encourages growth and job opportunities mark.
Yeah -- -- fix everything comes and message thank you take an attempt to be with us.
They do great to be here.
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