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This is serious stuff college tuition college costs continuing to skyrocket and student debt.
Is reaching all time -- how long can this continue and what can be done to change it.
Marc Canter with your president -- consulting.
He has this is big man you wanna talk to about student lending about -- -- he -- -- at Washington and private lenders to make college education more affordable.
And he joins us now from Pittsburgh Pennsylvania to discuss.
Markets -- a pleasure to be here you look down the road and you city families.
In just a few years it will be burdened with debt to the point that.
Parents aren't out of debt even by the time their own children -- way to college.
It's significant percentage of current students.
Are choosing toying between five -- thirty year repayment terms.
Which means they'll still be paying off their own student loans when their children are graduating from college.
Guys it's talking a lot of them are here markets have been it's -- out there right now.
But yet we're told go to college get an education start saving.
Are we going to be in for and we just had a guest -- -- -- a little more nervous about the economy we -- be in for just huge portion of the population.
Being saddled with lows of education related debt for for the majority of their -- time.
Well as significant portion I'm almost concerned about low income students where half to two thirds of their total family income.
Goes to paying out of pocket costs.
And the students to receive the programs.
Are twice as likely to graduate with that as students who are wealthy are.
And the data graduation is about 3000 dollars more for these students so where were not -- in helping the neediest of our student.
Role do you think that government funding with so much -- -- me the most.
Of borrowing student borrowing coming from government loans what role -- Uncle Sam had and driving up the cost.
And I just think about the ease of of credit and -- helping create -- the housing bubble or even government involvement health care driving costs up there.
How how much of a contributor has the government been driving up.
Well the the pell grant is less than that Tippett the annual increase in the poker and it's less than the typical increasing college costs.
So I don't think that for traditional college's increases in Federal Student Aid has driven.
Increases and -- the cost of tuition for example.
With the for profit colleges.
There is something called the 9010 rule.
That forces the colleges to increase their costs whenever the government increases -- student -- so for the for profit colleges.
It's an unintended consequence of this regulatory rule.
That's designed to ensure that students provide at least 10% of cost of attending a for profit college.
-- a lot of talk a lot of action around Sallie Mae and and -- the other governmental agencies what's going to be the outlook for lending you thinking you know five years got a kid that's approaching college.
-- twelve years old now with what's going to be the outlook.
Following current plain students graduate with about 45000 dollars and and the debt at graduation increases by a few percent a year.
The it's it's a largely driven by increases in tuition.
And federal loan limits tend to being fairly stagnant and we just had our.
First increase in loan limits.
And I don't expect the federal government to increase the loan limits every year.
So we're probably going to see students graduating with 3540000.
Dollars in debt.
Within the next five to ten years.
And that makes it more difficult for them to repay that debt since in -- have been stagnant for the past few years.
Mark please come back we'd love to see you again soon and talk more about this matters to every family in this country.
Market to with president MK consulting thank you.
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