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If you have a student loan or you're thinking about getting a student -- listen up the house approving sweeping changes to the student lending industry.
What might this mean for the price of a -- you have -- wanna get joining us now is one of the champions of that bill.
Representative George Miller of California is also chairman.
Of the house education and labor committee a congressman's Brian Sullivan and Dana McDowell thank you very much for coming on Fox Business.
Good morning why should be private student lending industry go away.
Well I think what we have is we have a way to think federally financed in the federally subsidized in the federally guaranteed program today.
They can no longer work with -- just -- major disruptions in the credit market in the foreseeable disruptions.
In the credit market these that of the the private money went away from the student loan market.
So we're taking is this federally financed at least subsidize.
And federally run program -- simply -- -- seen the savings that we can realize by taking the last bits of this program.
Back into the -- into the federal government that saves us 87 billion dollars that we can put to work on behalf of parents and students were struggling to finance.
A college education -- providing them lower interest rates by providing forty billion dollars.
In pell grants by expanding the Perkins loan program is so important campus based program.
To help finance student's education from various from various colleges and many other benefits that will with -- will go to these families and to the students.
But congressmen and how is this going to bring down the overall cost of college.
Because over the last twelve out of thirty years 127.
Of those years the -- -- college is gone -- faster than the cost of health care.
And people argued that it is much it did more credit the government provides.
For people to go to college the more colleges are gonna raise the calls.
We have Friday and we have continued and we have intensified on -- bipartisan basis and our committee attacking the issues about the cost of education.
Last year in the higher education bill we put in and maintenance of effort to make sure that states don't walk the walk away from their obligation to support these institutions.
We will be engaging in any major review both the role and the financing and the cost.
Of of education and higher education in this in this country if you're quite right.
These these rates are going up much faster than that the cost of living and have to be addressed it -- We're trying to make it more affordable given those costs but we're also seriously concerned them about -- cost of the rising cost of that education.
But the more the government is involved in the easier it is to get credit to go to college the colleges are just.
-- keep it's not easy for families to get ready to make -- if you're making an assumption that this is easy for families this is a struggle for individuals and families.
Even with the government programs.
Video with a lower hey -- place.
80% of the government if you make your back just in the -- how people.
Got a -- that's my case.
-- you're you're you're -- making the suggestion that somehow this is cavalier and an easy decision to take on this debt.
Talked to students talk to families and what we saw over the last couple years as hundreds of thousands of students.
We're fully qualified and competent to go to college are deciding not to because of the cost.
So with -- you know what what would you suggest to be that we don't make money available to to help finance education.
No of course that's not anybody suggested that the suggestion.
That's private loans dropped to the debates in the lenders all the private how many people in America that are as long as I did occasionally to go to college -- academic we do not get a loan.
And and it's guaranteed everybody don't look behind you don't get a look -- that.
Everybody gets along right now if I call it.
If you call it.
If you're if people well if you apply for -- you can get a loan.
How much how much loan you can get is dependent upon the income of your families what's available to you have you have that that testing of a family assets and qualification.
So why don't we say like -- you -- -- more loans available love it you're saying -- the cost not the availability could you disagreed that everybody can get alone.
Right we're not we're where we're making we're making we're trying to make loans available in the lower cost.
We're expanding the Perkins loan to many campuses that they don't that aren't allowed to offer that loan today -- turned out to be very valuable source of of financing for four students and we're increasing.
The that the value of the pell -- for the lowest income students were fully qualified to go to college so that they will in fact.
Perhaps not have to borrow as much money as they otherwise would that's how families assemble a package to pay for education.
On an annual basis that's -- decision families go through.
Well illicit congressman I don't disagree that OK as somebody went to law school at night.
I the united had a job and so like you know I was I would love who worked full time I didn't have to think alone because I work full time all of them -- well hi everybody I'm powerful emotion I work full time also also but I -- you know toward the end night I heard double full time.
You know we can -- you know we we're not gonna argue about who work the hardest during lost -- what I'm trying to -- is that.
I had to take a private.
Okay because you know my career his -- well I I guess -- you know two successful for the government decide to go borrow money from.
You know big company in.
You know -- -- pay more interest which is fine I guess that I had a job so you know you're gonna penalize the people work I guess.
But I know I send my check everybody that -- and anybody well I'd I'd -- -- higher interest rates and if I got a government loan which I.
Couldn't get anyway so -- I've paid my money every month the company in South Dakota.
What happens to those people -- they get laid off.
No is under this -- of provisions of this of this bill what we've already seen and went in Wall Street analysts have seen.
Is that it is the vendors were many of them will compete now service these loans which has been identified as Wall Street -- -- people in and major source of growth.
For these companies when Nelnet and Sally -- won the competition to services that the federal loans -- stocks went up appreciable.
So this old growth there because these are now federal loans to be serviced here they will have to be.
You bring back jobs that they've outsourced overseas but those loans and that there will be that -- same high quality of service -- and growth for those for those companies.
But there's there's there's no point is continuing this myth that somehow this is a private program.
And we're providing all of the capital were providing all of the guarantee and -- -- we're paying for all of the defaults.
That's a federally run program that's -- exist.
Today I agree and I guess -- Maybe -- never gotten to that point if banks make Smart but but you know there's an education the most viable thing we can do you learn that I learned that they -- that so.
Good luck in your efforts representative George Miller -- -- -- all right.
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