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Will the Biden administration forgive student loan debt?

2020-11-18 | 🔗
Former Obama economic adviser Robert Wolf, Trump economic adviser Stephen Moore weigh in on ‘Fox & Friends.’
This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
It dogs figure in my plan, I it dogs figure in my plan I have laid out in detail. The passed by the Democratic House calls for immediate ten thousand dollars. Forgiveness holding people up, they are in real trouble. It should be done immediately. Steve Forgiving student loans progressives are ramping up. Pressure on President Elect Joe Biden to forgive student loan debt Senate Minority leader, Chuck Schumer even suggested Biden, should bypass Congress and cancel fifty thousand bucks of debt per student with an executive order here to discuss former Obama, economic adviser and Fox NEWS contributor. Robert Wolf screen left and screen right. The member of the House economic Recovery Task Force, Steve Moore Guys good morning, good morning, good morning, Steve after Joe Biden said that on Monday AOC said this. Regarding for giving the loans she said on Twitter student loan forgiveness is good. Actually, we should also push for tuition free public colleges to
avoid this huge debt bubble from financially disseminating people in every generation. Also, she went on to stay is one of the easiest progressive policies to pay for with multiple avenues from a transaction tax to the ultra wealth tax, to cover it Robert. She would be hitting you to pay for that. Thats. Okay, lets focus on what President Elect Biden said, because his comments are spot on. He is stating that during the covid crisis, hardworking Americans are making these tough decisions is unlike rent and food versus student loan. So when he said, is very clearly thats part of a congressional package, not an executive order that we should look at something is unlike student loan forgiveness up to ten thousand dollars. He has also said we should look at income relief schedule and be clear to both of you guys. We have had an auto bailout two farm bailouts. We have had a financial services
bailout. We have had airline bailouts, we have had small business bailouts. There are forty five million people that have student loans. There is one point, six trillion in student loans other than your housing mortgage, its the largest debt class. So, yes, we should be looking at this and thinking about how we can make it better and look at it and restructure it, whether its part, forgiveness or part, looking at the interest rate or part in income based schedule. So there is a lot of things we should look at, so the truth is what we should do now. Is president Trump should extend the moratorium from December 31st that he has already had in place, and he said he would look to extend thats. The first thing we should do Steve. So Stephen Moore, what do you Sty Roberts suggestion that these students, who have run up a big debt, get a bailout well Steve its just not fair to the people who worked hard and did pay off their debts? Now they have to pay taxes to
pay for the debts of the families that didnt pay their debts now heres. The point, though, and I think Robert and I would agree on this- the biggest financial scam in the history of the United States, Steve, is how much our universities and colleges are charging middle class families Steve Astronomical outrageous. Forty fifty sixty. Seventy thousand dollars a year when I went to the University of Illinois thirty seven years ago, the tuition was one thousand dollars a semester. Now its fifteen thousand dollars a semester. These are ridiculous. Its outrageous especially outrageous whats happening now on college campuses, where these universities are charging families, link mine, full tuition to have the kids on campus, lock them in their dorm rooms, and they are not teaching the kids Robert. That is unacceptable. Here is how we pay off the student loans. One last point here is how that student loan debt Goedel paid off how about the universities use their tens and hundreds of billions of dollars in endowments to pay help way off
that debt, not taxpayers. The universities should pay for it. Steve, and I have talked about this before we are in agreement. Did I not say a student loan bailout Steve? We were talking about bailouts, Steve Correct. I was saying there has been bailouts not. Why not look at it this as well restructuring when I ran UBS, we looked at those types of restructuring. More importantly, steve- and I totally agree that higher education is way too expensive. I mean, I think my alma mater is seventy five plus thousand dollars now a year. I mean its outrageous, especially where right now, kids are learning virtually, which you actually there should be a reduction in the cost of education. Absolutely I think that being said, the more important thing is its one point: six trillion of debt. It impacts forty five million people.
We should absolutely to be able to think about how we can make it look better. So, for example, maybe we say no one ever pays more than five percent of their income a year and they have over ten year schedule. Maybe we put it at zero percent rates, negative rates that people are talking about, so there is plenty of ways we can go about this Robert. Can I live with those. There is some wisdom to those ideas, but lets get to the big point here. Harvard has an endowment so large, Steve right now that they could give free tuition to every student from now until forever and still not run out of money. Why dont? They use endowment money pick on Harvard thats, okay, not just Harvard the other thing to think about. Is you know I have a big problem with AOC saying lets make college free, you mean taxpayers are now going to be on the hook to pay for these two hundred and fifty thousand dollars salaries for these Steve Right
so Steve. It really would be a bailout of colleges exactly exactly it bales out the universities because they are flabby inefficient. Nobody ever looks under the hood to see how they spend their money. I mean its just not fair to the american taxpayer Steve good discussion. President Elect Biden has not supported a wealth tax nor financial transaction tax thats a relief I want to say I know you are touting what AOC is talking about. President Elect Biden has not said this Steve. That is a good point. Maybe she could be the Treasury Secretary Steve, oh manual. This could go on all day.
Transcript generated on 2020-11-18.