Taxpayers foot the bill for Obama's student loan agenda

Thomas talk show brought to you by network capital funding corporation your future financed. You know there's. That there's been a lot of political controversy and conversation recently about student loans the the amount of money. That people have borrowed and now hold on student loans is the largest. Personal that there is in this country and head of credit cards. And it's it's scary to see what it's doing to the cost of on a call which I mean we're in this cycle. Where because there's so much government subsidy around four colleges that the cost of college is gone up exponentially through the years. And people are stock. With this huge burden and our coming to a point where people action figure education might not be worth it anymore at a time when we need education more than. Any other time. I'm writing eloquently on the subject as a guy that we wanted to get on this show for umpteen months now although we wished. But all Haas said he was still in the United States senate. John Sununu from New Hampshire of -- United States senator and now occasional actually our regular Monday columnist for of all places the Boston Globe senator -- thanks for joining us. And good morning it's great people if you end by all means I don't want anyone to think I've been avoiding electric -- just haven't quite worked out in I would great. This is a treasure ferocity really as a sinister told me about you know -- but the alignment Tehran's right to just blessed myself I feel lucky this is great you wanna do it again I'll do it again or the name of the father son -- spirited -- -- -- -- expires lets -- set it up for I have said so we have today -- big political. Diversion here distraction I guess over the idea that these interest rates are set to automatically heal up why is that that there. That they are set in a more reasonable way is it deliberately designed this way to cars auctioneer controversy. Well I it was part of a bill that was passed I think back in 20075. Year life on the bill because of the it was written. So it expires. Ended June. The 2012. Alienated flex some low front and the interest rates important it's not to say that this -- They'll some value if you going. From six point 8% to 3.4 percent on the student loan for the new -- doesn't affect any -- -- alone today. But be sure that makes a difference on a monthly payments. But as you suggest that this -- issues it's a distraction. From the ballooning size. Of student debt update 150 billion. From the increasing. Significantly. Increasing rates of default. And the fact that the government is now. The direct lender. For only -- student loans. So they're growing default rate is gonna fall on whose shoulders. The taxpayers' shoulders. And and the -- that the apartment that you didn't match much play against the to that we've got something that hangover at risk they're growing -- -- really wants. Senator -- increasing. Writing in commentary. That the president's the availability. Of federal funding student loan student grants. Is seen is seen now by many as an accelerant. To the cost of college were becoming for media unfortunately. With colleges that -- 5558. Soon to -- breach 60000. Dollars a year. Which one makes it an affordable and unfortunately probably who leads to more federal renewable cries for federal assistance. -- -- look I don't think that the availability. And and there are growing availability. Other assistance is the only cause. Collagen and tuition rates going up but it's certainly a tractor. But it also creates. Every opportunity. Or -- a potentially -- the better way of saying it from the other things that are driving the increase in costs you know they're. Bureaucracy at the university's. The degree to which many universities don't require tenured professors to teach. Multiple courses. -- you know all of those things are raised the costs for your your average student. And what we knew that make. This financial aid available in the way that we have. It did you know it makes it less imperative that you can talk about those cost because there's always a way to find. Someone resource is to pay for these skyrocketing tuition even if it means an -- incurring an ever more debt. -- it get any sense senator that that the American people are catching on. That there's but there's a price to be paid when the government is offering freebies that your invading a marketplace and thus distorting it. I think that they are an but I don't think the first and maybe most important thing to do is to make sure that. He will be retained. You know viable alternative whether to community college system -- not for profit college system. Other things that compete with these standard you know state sponsored four year university. Because goaded into state universities and they culture and there are terrific -- as the businesses -- -- -- And criticize any one option or opportunity. But the U wanna make sure that -- the federal government doesn't suddenly say. Well you know -- -- be good for profit colleges aren't eligible for this kind of assistance Community Colleges aren't eligible for this kind of assistance. The other thing that I think that we need to start talking a little bit more about. Is that fact that. The government providing. 4550. Billion in grants every year for -- higher education. Over a hundred billion in loans. And the government for all intents and purposes doesn't care what the students spend money. So Wendy you're getting a four year degree in bio mechanical engineering. Or four year degree in puppetry you can -- Seinfeld. And I -- a puppet show as much as anyone. But you know we've we've got to be honest as we -- the same expects up to be no matter what anyone studies. Then it's hard for us to be disappointed and angry that more people don't go into a math and science in an -- is a technology that really drive vehicles. Pretty incredible to think about it you make -- point powerfully persuasively in today's column when you're in the senate if you ever raids that is -- a come curious either in committee or on the floor. How would your fellow senators react it would seem to me that and a body of a hundred. Pretty accomplished guys and gals. That you know you might get some some heads bobbing. Up and down in agreement saying you know John is absolutely. Right about this. And I want to know where you know is there ready movement out -- that we should be aware of. No I'm not really none that I know of yeah I. I don't know how people would react and sure some people would feel out your -- You're you're criticizing -- -- liberal arts education in organized and on technical field of study which are incredibly valuable and I agree on it's not to say that that. In non technical barriers are important and valuable but but I think there's got to be some way. To make a distinction to entered the strength in the support for one area without necessarily. Diminishing other areas -- -- let's face it I honestly don't think you should get the same. Same subsidy for. Some of those areas of of we researching and had degrees and obviously. Aren't driving on. As you say that president medieval languages Burress is a bio bio mechanical engineering. How how of this -- last week interesting announcement haven't MIT talked about. Now offering online courses apparently for credit. And it seems to be a growing movement once the mood down there in the senate more importantly what what's your take on. On line courses as perhaps a wave breaking their costs cycle we've been talking about. I think it's a great idea the end I think it's something that should be pursued. I think those are heard very good. Institutions to -- sort take a song. The same time. I don't I don't know how it will. And up I don't know what the structure is I don't know I get charged -- I don't know. -- exactly how you'd you'd delivered a quality accreditation at those institutions need. But basically it went -- decided it when I read a story like this the first thing I think of is. Well gee that sounds really interesting and somewhat promising I hope the government doesn't get involved. I hope they let these institutions. You know a lot of things didn't work out the kinks. Without someone from there -- -- the Department of Education or don't like that he didn't think it helped an account. To be structured in a particular way -- students. To be able. -- would have to be structured in a certain way it'll department agrees to be credited under the program a program or whatever it might be interest growing. Requirements. In the way based on how they think and online degree should well so that would be him. Wouldn't it just be better the government got out of the student loan business salt -- Well how. I'm not prepared to say god only because. There and they are so -- right now I can't stand here today and offer you. Sort of a vision. And it can set -- specific as to how that would or just I think it was a mistake that -- mean that the federal government basically can't go -- lenders out of the program. About three or four years ago yes and I think that's unfortunate again I think it's impacting that. The point the block out all the different options. In the -- you know -- students -- university choose the right option for them and unfortunately we have fewer options today. We're sort of -- is concerned and we did a few years ago. All right former senator Johnson in New Hampshire thanks are being hero you could -- good good stuff thanks for joining us senate. He's terrific isn't he has he's really Smart guys these columns amazing it's in the globe today it's there every Monday in the op Ed pages no state --