WEBVTT - Episode 12: Could the U.S. Make College Free?

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<v Speaker 1>It's all about hard work down here. The stuff you've

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<v Speaker 1>heard about Sydney being a lifestyle bureau, don't believe it

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<v Speaker 1>for a second. This episode is brought to you by Nadex,

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<v Speaker 1>The future of trading is here now at n A

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<v Speaker 1>d e x dot com, futures, options and spots. Trading

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<v Speaker 1>involves risk and may not be appropriate for all investors. Hi,

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<v Speaker 1>and welcome back to Bloomberg Benchmark, a podcast about the

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<v Speaker 1>global economy. It is Thursday, November nineteen. I'm Tori Stillwell

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<v Speaker 1>and economics reporter with Bloomberg News in d C. And

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<v Speaker 1>I'm joined this week by my co host, Dan Moss,

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<v Speaker 1>our executive editor for International Economics Coverage, who is a

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<v Speaker 1>very early to join us from Sydney this week, and Ako,

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<v Speaker 1>our editor for Benchmark in San Francisco. Hey everyone, it's

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<v Speaker 1>great to be here. Dan. When are you going to

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<v Speaker 1>move me to the Sydney bureau. I've been asking for

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<v Speaker 1>this for years. You know, those requests might just have

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<v Speaker 1>escaped my attention, Tori. It's all about hard work down here.

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<v Speaker 1>The stuff you've heard about Sydney being a lifestyle bureau,

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<v Speaker 1>don't believe it for a second. Okay, that's great to know, Tori.

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<v Speaker 1>I have a two announcements before we start the show today. One,

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<v Speaker 1>there have been a lot of really cool people tweeting

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<v Speaker 1>with at us with feedback about our show. Special shout

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<v Speaker 1>out here to Mike Lamp from South Carolina and Dan

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<v Speaker 1>Levine and San Francisco, So please keep writing to us.

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<v Speaker 1>We love to hear from you. And second of all,

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<v Speaker 1>we are throwing a swanky cocktail party on December one

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<v Speaker 1>in d C, U celebrating both this podcast and also

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<v Speaker 1>the print section of Schmark, which you can find on

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<v Speaker 1>Bloomberg dot com. And it's going to be a bunch

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<v Speaker 1>of economists and policy experts, DC journalists. And we're also

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<v Speaker 1>holding a couple of free tickets to our loyal listeners.

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<v Speaker 1>So if you live in d C and you'd like

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<v Speaker 1>to come, send us a tweet with what you think

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<v Speaker 1>of the show and we'll hold a ticket for you.

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<v Speaker 1>We'll be announcing our Twitter handles at the end of

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<v Speaker 1>the show. So first off, we want to offer our

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<v Speaker 1>sympathy to the people of Paris and Beiru and other

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<v Speaker 1>cities that have seen terrorists attacks in the past week.

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<v Speaker 1>What took place there was both horrendous and tragic, and

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<v Speaker 1>often when events like this unfold, concern starts to percolate

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<v Speaker 1>that an economy will also be harmed up. Colleague Simon

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<v Speaker 1>Kennedy wrote about this this week, and the people he

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<v Speaker 1>spoke to concluded that in a large, diversified economy like France,

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<v Speaker 1>it's very, very tough to find any kind of significant

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<v Speaker 1>medium to long term economic consequence from these events. It

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<v Speaker 1>doesn't mean they're not tragic, it doesn't mean there are

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<v Speaker 1>long term policy consequences. There may well be, But for

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<v Speaker 1>those of us who are concerned that on top of

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<v Speaker 1>the human tragedy there will be economic damage, at least

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<v Speaker 1>you won't have to worry about the latter. Gosh, seems

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<v Speaker 1>to be almost crassed to be talking about the monetary

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<v Speaker 1>impact of what's such a human tragedy here, But you know,

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<v Speaker 1>at the same time, if an economy worsens because of

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<v Speaker 1>these attacks, it's definitely a double punch to a country

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<v Speaker 1>that's already reeling from these human losses. So I'm really

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<v Speaker 1>glad to hear that even these attacks in Paris are

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<v Speaker 1>unlikely to harm the French economy as a whole. That's right,

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<v Speaker 1>Terrorists who want to disrupt modern economies often have a

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<v Speaker 1>pretty difficult task ahead of them. So, transitioning back to

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<v Speaker 1>the US, we want to take a look at an

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<v Speaker 1>issue that's been grabbing an increasing share of headlines lately,

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<v Speaker 1>and that is student debt. Presidential candidates are promising free

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<v Speaker 1>public college. Last week, you guys may have heard about it.

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<v Speaker 1>There is this event called the Million Student March, and

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<v Speaker 1>people are demanding tuition free public college, a cancelation of

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<v Speaker 1>all student debt, and also a fifteen dollar minimum wage

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<v Speaker 1>for all campus workers on top of that. So on

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<v Speaker 1>today's show, we want to talk about a couple of things.

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<v Speaker 1>We want to talk about just how big the student

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<v Speaker 1>debt burden is, and then we want to walk through

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<v Speaker 1>this idea of free college, whether it's actually possible here

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<v Speaker 1>in America now or in the near future, and could

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<v Speaker 1>we actually have a US without student debt at all?

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<v Speaker 1>And if not, what can we do to reduce the

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<v Speaker 1>student det burden. So let's start with the lay of

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<v Speaker 1>the land on US student debt, that we can understand

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<v Speaker 1>just what we're dealing with here and why this issue

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<v Speaker 1>has become such a hated one, with some even calling

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<v Speaker 1>it a cross tory. You have a couple of numbers

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<v Speaker 1>for us here, right, For those of us who don't

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<v Speaker 1>know student that really well, can you give us a

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<v Speaker 1>brief overview of how they work? Yes, so there are

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<v Speaker 1>private sector loans that you can use, of course, but

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<v Speaker 1>also most student loans in the US are federally guaranteed

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<v Speaker 1>or are direct loans made by the Department of Education.

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<v Speaker 1>You know, some are based on financial needs, with some

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<v Speaker 1>interests or cruise while you're in school, with others it doesn't.

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<v Speaker 1>Some are available to the parents of students, so there's

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<v Speaker 1>sort of a variety of loans to choose from. With

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<v Speaker 1>most loans, repayment begins after about a six month grace period,

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<v Speaker 1>and people generally have like a ten year window to

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<v Speaker 1>pay them back, but that can be pushed out, especially

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<v Speaker 1>when when the debt that you have is especially large.

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<v Speaker 1>So let's zoom out a little far. There is one

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<v Speaker 1>point two trillion dollars abo outstanding student loaned it that's

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<v Speaker 1>as of June, and so there's more student loaned it

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<v Speaker 1>than any other type of household debt except mortgages, and

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<v Speaker 1>the level of student loaned it has more than tripled

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<v Speaker 1>over the past decade. Has a quality of education multiplied

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<v Speaker 1>by the same factor over the same period, um, I

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<v Speaker 1>would say that's a that's a lot harder to quantify,

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<v Speaker 1>but certainly tuition has been going up. A lot of

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<v Speaker 1>that is because on a per student basis, states have

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<v Speaker 1>been cutting back their funding of higher education for quite

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<v Speaker 1>a while. You know, they don't have a lot of

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<v Speaker 1>extra money floating around, So a lot of public schools

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<v Speaker 1>especially have been using increased tuition revenues to replace declining

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<v Speaker 1>state funding. But with private schools, a lot of them

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<v Speaker 1>lost a ton of money in the crash, and they're

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<v Speaker 1>also spending more on things they didn't used to, more programs, facilities, research,

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<v Speaker 1>all types of stuff, and they're also giving a lot

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<v Speaker 1>more financial aid. This issue of student debt, it does

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<v Speaker 1>seem in its scale to be somewhat unique to the US.

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<v Speaker 1>In Australia, for example, for a couple of decades we

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<v Speaker 1>had free f R double a tertiary education. Students now

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<v Speaker 1>pay some of the cost of that, but it's nothing

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<v Speaker 1>like the figures bandied around for the US. How did

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<v Speaker 1>it get to be this way? We do know a

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<v Speaker 1>couple of things. We can tell you a little bit

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<v Speaker 1>more about who's borrowing, who's doing the borrowing. We know

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<v Speaker 1>that low income households often are the ones that have

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<v Speaker 1>to borrow the most um. But when we look at

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<v Speaker 1>the real increase over the last couple of years, that's

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<v Speaker 1>been driven by higher income families borrowing a lot as well. UM.

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<v Speaker 1>We know that the bulk of increased borrowing in the

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<v Speaker 1>past few years has been driven by students who went

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<v Speaker 1>to for profit or two year colleges like community schools UM.

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<v Speaker 1>And I think we should also put some parameters around this.

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<v Speaker 1>I feel like, and a lot of the conversations I

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<v Speaker 1>hear about student debt, it just feels like everybody has

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<v Speaker 1>student debt and everyone's rocking like two hundred thousand dollars

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<v Speaker 1>worth of student debt um and that's just not the case.

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<v Speaker 1>We know that when we look at young households, households

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<v Speaker 1>under the age of forty or so, about of those

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<v Speaker 1>households have education debt that's as of according to the

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<v Speaker 1>Federal Reserve. And among those young households. The median debt

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<v Speaker 1>was about seventeen thousand dollars, so that's much lower than

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<v Speaker 1>I think what a lot of people think about. Now,

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<v Speaker 1>does that depend on the type of tertiary institution people

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<v Speaker 1>have been to? I mean, would your average Harvard, Yale,

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<v Speaker 1>m I T, Stanford, Cornell grad be carrying that kind

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<v Speaker 1>of number or is it exponentially high? Is that just

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<v Speaker 1>an average? Well, definitely depends on what school you go

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<v Speaker 1>to and also what level of education in that you're at.

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<v Speaker 1>Grad students are going to be borrowing a lot more

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<v Speaker 1>money than um someone getting an undergraduate degree. So to

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<v Speaker 1>help us with our second goal of this show, which

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<v Speaker 1>is to determine the feasibility of free public college, could

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<v Speaker 1>we actually have a US without student debt? We're going

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<v Speaker 1>to bring on one of our colleagues who's been covering

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<v Speaker 1>higher education at Bloomberg since two thousand and eight. But first,

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<v Speaker 1>dot com futures options and swaps trading involves risk and

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<v Speaker 1>may not be appropriate for all investors. We have Janet

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<v Speaker 1>Lauren with us, a colleague in New York who covers

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<v Speaker 1>higher education, and Janet actually won a George Polk Award

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<v Speaker 1>for her reporting on student loans a couple of years back,

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<v Speaker 1>so super excited to have her with us. Hey, Janet, Hi,

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<v Speaker 1>thank you very much for having me. So, Janet, let's

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<v Speaker 1>run through some of these ideas that people are tossing around. Um,

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<v Speaker 1>the amount of student debt out there is more than

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<v Speaker 1>a trillion dollars higher than ever and that's sparking a

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<v Speaker 1>lot of these conversations right now. Can you talk about

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<v Speaker 1>some of the other countries that have actually been able

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<v Speaker 1>to make college free. Well, we heard from Dan in

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<v Speaker 1>Australia about his experience there where it had been free.

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<v Speaker 1>And Australia has also done something that the US has

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<v Speaker 1>been trying to do in its repayment plan called income

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<v Speaker 1>based repayment and student repay their loans based on their income.

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<v Speaker 1>And more students have been taking the government's offer up

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<v Speaker 1>here to do that because they've been struggling. But there's

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<v Speaker 1>one very important distinction between programs in Australia and New Zealand,

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<v Speaker 1>and that is there are price controls on the front end.

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<v Speaker 1>In the US. We don't have that, and uh, the

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<v Speaker 1>cost to attend college has really skyrocketed. It's increased faster

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<v Speaker 1>than inflation for decades. The problem starts with the price.

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<v Speaker 1>And to give you a little bit of perspective to

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<v Speaker 1>add what Torre had mentioned before, each year the Education

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<v Speaker 1>Department disperses about one hundred billion dollars in education loans,

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<v Speaker 1>mostly to students but also to parents. So you're talking

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<v Speaker 1>about a lot of money that people borrow to go

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<v Speaker 1>to school. So this idea of free college, um, the

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<v Speaker 1>question is, well, if the students aren't taking it out

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<v Speaker 1>in loans, where does it come from. And we've heard

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<v Speaker 1>two plans this year from the Democrats Bernie Sanders, the

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<v Speaker 1>Vermont Senator, has talked about eliminating undergraduate tuition and fees

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<v Speaker 1>and all public colleges and universities, with the government putting

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<v Speaker 1>in about two thirds of the funding and one third

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<v Speaker 1>coming from the state. And Hillary Clinton, who has her

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<v Speaker 1>own proposal, has criticized that, saying that even someone like

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<v Speaker 1>Donald Trump's kids would pay nothing for college, and he

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<v Speaker 1>could certainly afford to pay something. And Hillary Clinton has

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<v Speaker 1>offered her own proposal, and that would cost about three

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<v Speaker 1>hundred billion dollars over a decade, and it would encourage

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<v Speaker 1>students to spend their own money on public higher education,

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<v Speaker 1>and the government would help with some grants. So it's

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<v Speaker 1>basic level. Though, are we gonna have to for free

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<v Speaker 1>tuition to public colleges and universities to actually happen? That

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<v Speaker 1>seems like it would require massive tax increases. Well, we're

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<v Speaker 1>not really sure where the money would come from. You know,

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<v Speaker 1>that's the beauty of proposing grand ideas. And certainly the

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<v Speaker 1>states were able and willing to put more money um

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<v Speaker 1>towards higher education, sure it would would likely have to

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<v Speaker 1>come from another place. Both candidates have proposed that the

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<v Speaker 1>federal government could spend more right, Right, So, if we

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<v Speaker 1>as a society are deciding that we just want to

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<v Speaker 1>publicly fund higher education, that's going to have to come

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<v Speaker 1>at the expense of some other things though that would

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<v Speaker 1>be funded by the federal government. Well, the federal government already,

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<v Speaker 1>you know, funds a lot of money in terms of

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<v Speaker 1>higher education in terms of grants, and also the loans

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<v Speaker 1>haveing uh cost money to the government as well in

0:13:33.920 --> 0:13:37.040
<v Speaker 1>terms of there are subsidies you've mentioned the government picks

0:13:37.080 --> 0:13:40.880
<v Speaker 1>up the interest for some student loans during school Janet,

0:13:41.320 --> 0:13:46.040
<v Speaker 1>people all around the world, despite everything that you've just said,

0:13:47.160 --> 0:13:51.720
<v Speaker 1>lining up and killing themselves to get into US colleges.

0:13:52.480 --> 0:13:56.520
<v Speaker 1>And global rankings that have done at least once a

0:13:56.640 --> 0:14:00.680
<v Speaker 1>year show that the top universities in the world still

0:14:01.320 --> 0:14:08.080
<v Speaker 1>buy and large mainly US schools. Shouldn't we pay for

0:14:08.280 --> 0:14:11.880
<v Speaker 1>the best? Well, those schools are mostly in the private sector,

0:14:11.960 --> 0:14:13.679
<v Speaker 1>which is not the sector we're talking about a few

0:14:13.679 --> 0:14:17.400
<v Speaker 1>minutes ago, and the cost of some of those top

0:14:17.520 --> 0:14:20.680
<v Speaker 1>schools for an undergraduate is in you know, the sixty

0:14:21.040 --> 0:14:24.640
<v Speaker 1>dollar range. Now, the wealthiest schools like Harvard and Yale

0:14:24.640 --> 0:14:27.640
<v Speaker 1>and Princeton and m I T have a very large endowment.

0:14:28.160 --> 0:14:31.720
<v Speaker 1>So they're able to subsidize lower income students. So if

0:14:31.760 --> 0:14:35.880
<v Speaker 1>you fall within a threshold, say sixty dollars or lower

0:14:35.960 --> 0:14:38.880
<v Speaker 1>a place like Harvard, the school pace for everything. And

0:14:38.960 --> 0:14:42.040
<v Speaker 1>isn't that the case with community colleges to and and

0:14:42.200 --> 0:14:44.920
<v Speaker 1>really low income students around the board, if you're really

0:14:45.040 --> 0:14:47.840
<v Speaker 1>needy it is. Isn't it pretty cheap for you to

0:14:47.880 --> 0:14:51.840
<v Speaker 1>go to college in many cases to a community college? Yes, um,

0:14:51.880 --> 0:14:55.600
<v Speaker 1>there there's the Pell grant which funds about per year

0:14:56.080 --> 0:14:59.720
<v Speaker 1>and that generally will cover your tuition at a community college.

0:15:00.120 --> 0:15:03.240
<v Speaker 1>And those community colleges are two years. And in fact,

0:15:03.280 --> 0:15:06.200
<v Speaker 1>we heard a proposal from President Obama earlier this year

0:15:06.240 --> 0:15:09.760
<v Speaker 1>to make community college free and one criticism has been,

0:15:09.800 --> 0:15:13.480
<v Speaker 1>well already is free for lower income students. And the

0:15:13.560 --> 0:15:17.640
<v Speaker 1>challenge with community colleges is getting those students to complete

0:15:18.080 --> 0:15:21.480
<v Speaker 1>because often if you're attending a community college, you're older,

0:15:22.080 --> 0:15:25.480
<v Speaker 1>you may have children, and you need the support to

0:15:25.560 --> 0:15:29.040
<v Speaker 1>help you get through college. It's not just the tuition

0:15:29.400 --> 0:15:31.760
<v Speaker 1>um that that is a difficulty, and especially if you're

0:15:31.760 --> 0:15:34.080
<v Speaker 1>able to get a Pell grant, it's the support to

0:15:34.160 --> 0:15:36.880
<v Speaker 1>make sure you get the classes you need to graduate

0:15:36.920 --> 0:15:40.080
<v Speaker 1>on time and to finish your program and to get

0:15:40.160 --> 0:15:42.560
<v Speaker 1>help when you know you can't get that class or

0:15:42.560 --> 0:15:45.520
<v Speaker 1>you have this struggle, and there's there's somebody who can

0:15:45.600 --> 0:15:48.240
<v Speaker 1>support you to make sure you're finishing. And we know

0:15:48.320 --> 0:15:51.800
<v Speaker 1>if you don't complete college, that's when debt becomes a huge,

0:15:51.920 --> 0:15:55.960
<v Speaker 1>huge problem because you you not only don't have this degree,

0:15:56.040 --> 0:15:57.600
<v Speaker 1>so you're not going to get be able to get

0:15:57.600 --> 0:16:01.320
<v Speaker 1>a job that would enable you to earn more, but

0:16:01.560 --> 0:16:04.560
<v Speaker 1>now you also have the debt, and then the absence

0:16:04.600 --> 0:16:07.880
<v Speaker 1>of that extra credential could sort of like reduce your

0:16:07.920 --> 0:16:11.600
<v Speaker 1>motivation even to pay back these loans. So Dan and Torry,

0:16:11.720 --> 0:16:14.880
<v Speaker 1>let's put our economists caps on, and let's say this

0:16:15.120 --> 0:16:19.440
<v Speaker 1>actually happened, that public college actually became free in America.

0:16:19.920 --> 0:16:22.920
<v Speaker 1>From an economic angle, could we say that that would

0:16:22.920 --> 0:16:25.640
<v Speaker 1>be a great thing that all the student debt money

0:16:25.840 --> 0:16:29.120
<v Speaker 1>could be applied to other things. What people were paying

0:16:29.240 --> 0:16:32.120
<v Speaker 1>maybe four hundred dollars per month, Let's say they could

0:16:32.320 --> 0:16:37.840
<v Speaker 1>instead spend on mortgages, or on fancy new bikes, or

0:16:37.880 --> 0:16:41.480
<v Speaker 1>even retirement. If you're not putting that four hundred dollars

0:16:41.480 --> 0:16:44.320
<v Speaker 1>to your student loan payment, you're not able to take

0:16:44.320 --> 0:16:48.240
<v Speaker 1>advantage of putting money away towards retirement. Pew came out

0:16:48.280 --> 0:16:51.280
<v Speaker 1>with a store study about a year ago that looked

0:16:51.280 --> 0:16:54.360
<v Speaker 1>at the growing divergence between those who have student loans

0:16:54.440 --> 0:16:56.720
<v Speaker 1>and those who don't. And if you're making that four

0:16:57.400 --> 0:17:00.160
<v Speaker 1>payment every month towards your payments, you're not able to

0:17:00.240 --> 0:17:03.200
<v Speaker 1>save for retirement. And you know how much that can

0:17:03.240 --> 0:17:06.639
<v Speaker 1>grow over over time when you're ready to retire. So

0:17:06.720 --> 0:17:09.960
<v Speaker 1>that's something else. In addition to mortgages, you may be

0:17:10.160 --> 0:17:12.159
<v Speaker 1>seeing a big difference between those who have debt and

0:17:12.200 --> 0:17:14.680
<v Speaker 1>those who don't. But it's not really fair to look

0:17:14.680 --> 0:17:17.000
<v Speaker 1>at that just in a vacuum. Right If we if

0:17:17.000 --> 0:17:20.560
<v Speaker 1>we do think that free college is possible in the US,

0:17:20.600 --> 0:17:22.399
<v Speaker 1>and we and we use that hypothetical that money has

0:17:22.400 --> 0:17:24.200
<v Speaker 1>got to come from somewhere, and it does come from

0:17:24.200 --> 0:17:27.360
<v Speaker 1>tax increases. That is going to be money that's that's

0:17:27.400 --> 0:17:30.719
<v Speaker 1>out of your pocket that wasn't before, unless you're taxing

0:17:30.800 --> 0:17:33.920
<v Speaker 1>someone else and not yourself. Let's answer the question, though,

0:17:34.040 --> 0:17:36.800
<v Speaker 1>could this actually happen here in the US? Is are

0:17:36.800 --> 0:17:39.320
<v Speaker 1>we just talking pure hypothetical here? Is this something that

0:17:39.359 --> 0:17:43.800
<v Speaker 1>could happen? Well? Bernie Sanders proposal, I believe is setting

0:17:43.800 --> 0:17:47.239
<v Speaker 1>a fifty cent tax on every of stock trades on

0:17:47.359 --> 0:17:51.399
<v Speaker 1>stock sales and lesser amounts. So that's one way to

0:17:51.480 --> 0:17:55.159
<v Speaker 1>do it. Um. I'll give you another example. Elizabeth Warren

0:17:55.560 --> 0:18:00.000
<v Speaker 1>proposed twice to allow students to refinance their student loans

0:18:00.080 --> 0:18:02.960
<v Speaker 1>to a lower rate, and that was turned down twice

0:18:03.000 --> 0:18:05.680
<v Speaker 1>by Congress. So I don't know that you're going to

0:18:05.800 --> 0:18:08.200
<v Speaker 1>have that kind of support. Um. And you get into

0:18:08.200 --> 0:18:11.400
<v Speaker 1>the argument that Hillary Clinton has has pushed that if

0:18:11.400 --> 0:18:15.359
<v Speaker 1>there's free public school tuition for everybody, why should you

0:18:15.359 --> 0:18:19.320
<v Speaker 1>be subsidizing the wealthiest of students? Right, do we really

0:18:19.320 --> 0:18:21.880
<v Speaker 1>want to forgive the one thousand dead of a bunch

0:18:21.880 --> 0:18:26.600
<v Speaker 1>of lawyers who already have nice condas and cars. Probably not, um, So,

0:18:26.800 --> 0:18:30.600
<v Speaker 1>I mean, it doesn't sound like this is It sounds

0:18:30.600 --> 0:18:32.960
<v Speaker 1>like we could do it, certainly, but it doesn't really

0:18:33.000 --> 0:18:37.679
<v Speaker 1>sound like it's very practical. Well, and that's you know,

0:18:37.720 --> 0:18:41.119
<v Speaker 1>looking at the undergraduate degrees, and certainly we know that, um,

0:18:41.160 --> 0:18:45.840
<v Speaker 1>if you have a undergraduate degree, your earning power is increasing.

0:18:46.200 --> 0:18:47.840
<v Speaker 1>And that was sort of the whole idea of the

0:18:47.840 --> 0:18:50.879
<v Speaker 1>federal student loans when when the program was started fifty

0:18:50.960 --> 0:18:54.080
<v Speaker 1>years ago to give young people a little bit of

0:18:54.119 --> 0:18:57.200
<v Speaker 1>liquidity to pay for college because they would be repaying

0:18:57.240 --> 0:19:01.320
<v Speaker 1>that with the lifetime of higher earnings. Now, we haven't

0:19:01.320 --> 0:19:05.760
<v Speaker 1>really talked about graduate school too much. College can be

0:19:05.840 --> 0:19:09.760
<v Speaker 1>subsidized with with aid, you know, grants from colleges, but

0:19:09.920 --> 0:19:14.840
<v Speaker 1>you don't see that kind of financial aid with graduate schools.

0:19:14.920 --> 0:19:18.920
<v Speaker 1>And they are much costlier and students are often expected

0:19:18.920 --> 0:19:21.680
<v Speaker 1>to bear the entire cost. And if you're going to

0:19:21.760 --> 0:19:25.760
<v Speaker 1>say law school, it could be eight dollars total, and

0:19:25.840 --> 0:19:27.880
<v Speaker 1>because of the laws that are in place, you can

0:19:28.000 --> 0:19:30.760
<v Speaker 1>borrow up to the cost of attendance, and that includes

0:19:30.840 --> 0:19:35.200
<v Speaker 1>living expenses. So when you see that um some students

0:19:35.200 --> 0:19:37.720
<v Speaker 1>have a lot of student debt, it's likely not just

0:19:37.840 --> 0:19:42.760
<v Speaker 1>for college, it's likely graduate school as well. Right right, Well,

0:19:42.800 --> 0:19:46.040
<v Speaker 1>I want to leave our listeners with some suggestions. You know,

0:19:46.040 --> 0:19:48.560
<v Speaker 1>if we're not going to have free public college, what

0:19:48.680 --> 0:19:51.080
<v Speaker 1>can we actually do to reduce the student that burned? Now?

0:19:51.480 --> 0:19:53.520
<v Speaker 1>One of them is just to make sure that more

0:19:53.560 --> 0:19:55.919
<v Speaker 1>people know about income based or payment that we've been

0:19:55.920 --> 0:19:59.560
<v Speaker 1>talking about. It's been far under utilized historically, although that

0:19:59.640 --> 0:20:02.960
<v Speaker 1>is starting to change. Also, no federal loans for you

0:20:03.040 --> 0:20:05.560
<v Speaker 1>if you go to a school where it's shown that

0:20:05.760 --> 0:20:07.560
<v Speaker 1>your outcomes aren't going to be that great. You know,

0:20:07.600 --> 0:20:10.240
<v Speaker 1>a lot of for profit institutions have high rates of

0:20:10.320 --> 0:20:13.560
<v Speaker 1>non repayment student debt. If that's the case, maybe we

0:20:13.560 --> 0:20:15.680
<v Speaker 1>should stop paying for people to go to those schools.

0:20:15.720 --> 0:20:18.479
<v Speaker 1>It's it's just something to think about. And also, like

0:20:18.520 --> 0:20:22.040
<v Speaker 1>we mentioned, really really focusing on this completion of college,

0:20:22.160 --> 0:20:24.600
<v Speaker 1>making sure that if people are taking out debt to

0:20:24.680 --> 0:20:27.000
<v Speaker 1>go to college, they need to be getting that degree.

0:20:27.520 --> 0:20:29.280
<v Speaker 1>And with that we are going to wrap up. Thank

0:20:29.280 --> 0:20:32.320
<v Speaker 1>you so much Janet for joining us. It's great to

0:20:32.359 --> 0:20:34.960
<v Speaker 1>be able to have such an expert on this stuff

0:20:35.000 --> 0:20:38.920
<v Speaker 1>with us, and thanks to you all for listening to

0:20:38.920 --> 0:20:41.800
<v Speaker 1>Bloomberg Benchmark. We'll be back next week and until then,

0:20:42.000 --> 0:20:44.520
<v Speaker 1>you can find us on the Bloomberg terminal and Bloomberg

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0:20:56.680 --> 0:20:58.520
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0:20:58.680 --> 0:21:01.000
<v Speaker 1>You can talk to us and follow us on Twitter

0:21:01.160 --> 0:21:04.560
<v Speaker 1>at Akta seven, at Daniel mass d c at Tori

0:21:04.720 --> 0:21:08.239
<v Speaker 1>Stillwell and for our guest Janet at Janet Lauren Um,

0:21:08.280 --> 0:21:10.320
<v Speaker 1>you cannot let us, So let us know what topics

0:21:10.359 --> 0:21:12.840
<v Speaker 1>you'd like to hear more about. And if you are

0:21:12.880 --> 0:21:16.159
<v Speaker 1>free in December one, and if you are in d C,

0:21:16.840 --> 0:21:19.120
<v Speaker 1>let us know and we'll hold a ticket for our

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<v Speaker 1>swanky cocktail party. Not to twanky now any this episode

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