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We'll have all that and more first but first our top story tonight.
Allowing all now that congress can never seem to get anything done.
But now you might say they're blowing up their homework Washington is nowhere close to a deal on student loan rates -- without congressional action on the interest rate on federal student loans Stafford loans.
Those loan rates will double the six point 8%.
This Monday but could that be a good thing here to weigh in -- Hampshire -- publisher of advisors dot com and Charlie Kirk founder of turning point USA welcome via both turley wanna start with you you say the government.
Should lead not allow these rates to double.
Why I think right now in this down economy the government has to keep interest rates -- look a lot of young people are struggling to find work.
They can't pay back their loans that is.
We see delinquency rates at all time highs if you -- to see those delinquency rates go even higher shirt don't let the rates double this is not a well thought out plan by congress to well.
Is reaching a critical and must do well thought out I ask you OK -- Running into mark mark you disagree you think that these loan rate should double lot.
Well it doesn't make that much of a difference.
The -- -- monthly home payment will go up by eighteen dollars a month.
And the real -- it's a distraction from the real problem which is the amount of debt not the the cost of the debt.
And each year students graduate -- with thousands of dollars of additional debt that's the real problem.
Charlie tell me how you respond to that.
Well look I know a lot of young people right now that are facing a lot of student -- -- and eighteen dollars a month might not sound a lot but when you add another twenty dollars a month for health care premiums and more taxes and more regulation and less jobs.
It does start to add up and like I said earlier we RTC delinquency rates of all time highs and we wanna -- -- even higher we're gonna see this student long bubble burst.
Because of the inaction of congress now if it's a well thought out plan and we incrementally increase interest rates that's one thing but it -- doubles overnight that's what's called a rate shock and all of a sudden we see this bubble burst.
Once and for all.
Let's look at this from a slightly different -- BO and that's from the federal govern from the taxpayers point of BO.
If we keep that loan interest rate at 3.4 percent it will cost the government 41 billion dollars 41 billion dollars over ten years mark -- saying that.
Well that's money that would be better spent doubling or even tripling the average -- ground which will reduce the amount of data graduation.
As opposed to -- student loan interest rates don't affect -- and -- in college or who graduates from college.
And Charlie what do you say -- that I mean he makes a good point here maybe this money can be used better elsewhere.
We I think that's a valid point but when we look at -- interest rates I'm not saying totally.
You know keep 3.4 percent for the next ten years but I'm saying a sudden.
Doubling of -- rate by July 1 that's just not very wise and a lot of students that have done their college decisions.
Based on a 3.4 percent rate and now you're gonna tell them six point 8%.
They were gonna go to a college based on that 3.4 percent rate they were.
Planning for years on that but if you just double it overnight.
That's not a wise way to go about things and again like you said earlier -- anything that congress do now I don't watch a well thought out I don't think so now.
No not generally but there is a problem with the system I mean check out this fact.
58% of students actually trying to earn a bachelor's degree get one in four years -- -- the reality is.
That the performance of of these kids who get things federal dollars it's pathetic.
Mark what should happen to the system to fix it.
Well I -- first saw the loan limits should be set more rationally based on ability to repay that debt.
As opposed to letting you borrow unlimited amounts of money through the plus loan program.
And -- we need to put more money into enabling students to access college and graduate from college.
Someone who graduates with a -- -- degree pays more than double the federal income tax a song with just a high school diploma.
So investing in college education is not just an investment in that student's future it's an investment in the future of the country.
Well Charlie I don't know I think we've oversold college education I think we put too much emphasis on -- what do you say.
-- we with talk about this before -- think you know we're gonna subsidize we're gonna give these low interest loans let's rethink the way we do it.
How do we look at return on value -- we don't -- a low interest loans -- they're gonna study something that's just made up like eastern medieval history that they go and and -- we should encourage more students.
To study that I think that's a new way we can look at student -- interest rates because.
You know one side might want to get government totally out of the way the other side wants to keep on giving these pell grants and loans but maybe there's a middle path that say hey.
Let's get these low interest loans to something that's actually -- -- -- -- job and taxpayers and future of business growth I think -- be a good middle road a lot of people can agree on.
Well like middle roads -- that I want to get your quick reaction to what's likely to happen here will congress -- or will they get something done.
By the deadline mark you first.
But -- of I couldn't do nothing -- they'll do what they do best because.
It's there -- too far apart the two sides to to reach an agreement by July 1.
They might reach an agreement a few days later and then make it retroactive.
But I don't think that they're going to get anything done by July 1.
-- Really click I I don't think that they're going to get a deal let time but he got an -- is something retroactively but let's look at why.
Again if this is a Medicare Social Security debate this would already be done because older people vote.
Young people don't let's not politicians are not feeling the pressure to do anything.
And that's the reality situation the young people don't come up the numbers that -- AARP might threaten there's no lobby group that saying hey if politicians if you double the rate they're gonna want to -- -- -- -- one answer to that young people need about.
Thanks for coming on guys appreciate your time Marc and Charlie appreciated thank they are happening.
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