I JUST BOUGHT A TV YESTERDAY SO
I WAS PART OF IT ALL.
MOVING ON NEW YORK DEMOCRAT
CONGRESSWOMAN ALEXANDRIA
OCASIO-CORTEZ CALLING ON HER
COLLEAGUES TO PRESSURE JOE BIDEN
TO WIPE OUT STUDENT LOAN DEBT OF
$1.6 TRILLION WORTH THROUGH AN
EXECUTIVE ORDER, BUT IS THAT
POSSIBLE?
AND WOULD THAT JUST PUSH TUITION
RATES EVEN HIGHER THAN THEY ARE?
TO FORMER REPUBLICAN
PRESIDENTIAL CANDIDATE AND
CURRENT FORBES MEDIA CHAIRMAN,
MY GOOD FRIEND STEVE FORBES.
STEVE GREAT TO SEE YOU THANK YOU
FOR BEING HERE.
HAPPY THANKSGIVING DAY WEEKEND.
I WANT TO TALK ABOUT THE
FAIRNESS ISSUE OF WIPING OUT
SCHOOL DEBT FIRST, BECAUSE IT’S
SOMETHING THAT DEMOCRATS USUALLY
SCREAM ABOUT IS FAIRNESS
FAIRNESS FAIRNESS, BUT LIZ
WARREN WHEN SHE WAS ON A
CAMPAIGN TRAIL BACK IN JANUARY
SHE WENT TO IOWA CONFRONTED BY A
WORKING CLASS AMERICAN ABOUT THE
ISSUE OF SCHOOL DEBT.
TAKE A LISTEN AND I WANT TO GET
YOUR REACTION.
>> MY DAUGHTER’S GETTING OUT OF
SCHOOL, I SAVED ALL OF MY MONEY.
AM I GOING TO GET MY MONEY BACK?
YOU’RE GOING TO PAY FOR PEOPLE
WHO DIDN’T SAVE ANY MONEY, AND
THOSE OF US WHO DID THE RIGHT
THING GET SCREWED?
OF COURSE WE DID, MY BUDDY AND
HIS SON BOUGHT A CAR AND WENT ON
VACATIONS AND I SAVED MY MONEY
AND HE MADE MORE THAN I DID AND
I WORKED A DOUBLE SHIFT, SO
YOU’RE LAUGHING AT ME.
WE DID THE RIGHT THING AND WE
GET SCREWED.
>> I APPRECIATE THE FEED BAM.
DAVID: WOW, THAT A LOT OF
PEOPLE THINK THAT MIGHT HAVE
COST HER THE NOMINATION, STEVE,
BUT THE FACT THAT THIS GUY AND
MILLIONS OF OTHER AMERICANS WORK
THEIR FINGERS TO THE BONE,
DOUBLE SHIFT, SAVING PAYING OFF
THEIR KID’S SCHOOL DEBT AND HE
SAYS AM I GOING TO GET MY MONEY
BACK?
THERE’S A FAIRNESS ISSUE THERE.
>> YES, THERE IS DAVID AND IT
MAKES PEOPLE WHO PAID THEIR
DEBTS, TOOK THEIR OBLIGATION
SERIOUSLY LOOK LIKE FOOLS, AND
IF THEY HAVE THIS DEBT
FORGIVENESS OF ANY KIND OF SCALE
, YOU’RE GOING TO HAVE
PEOPLE WONDERING WHY SHOULD I
PAY THOSE OBLIGATIONS AND TAKE
THOSE EXTRA JOBS AND WHY SHOULD
I SACRIFICE A PRIVATE UNIVERSITY
TO GO TO AN IN-STATE UNIVERSITY
TO SAVE MONEY, AND HONOR MY
OBLIGATIONS.
SO YOU MAKE A MOCKERY OF PEOPLE
WHO PLAYED BY THE RULES AND THIS
GETS TO THE BIG ISSUE WHICH
IS WHY ARE COLLEGE TUITIONS RIS
ING AT FOUR TIMES THE RATE OF
INFLATION THE STICKER PRICE?
WHY ARE THEY RISING EIGHT TIMES
THE CASH WAGES OF WORKING
AMERICANS?
IT’S BECAUSE THE UNIVERSITIES
ARE FULL OF BUREAUCRATIC OBESITY
THE VERY GOVERNMENT PROGRAMS
HAVE SHOWN, DAVID THAT ARE
SUPPOSEDLY HELPING STUDENTS
INSTEAD LEAD TO HIGHER TUITIONS
AND THE UNIVERSITY GETS THE
MONEY, THEY ADD
ADMINISTRATIVE COSTS AND THE
STUDENTS GET STUCK AND THEIR
FAMILIES GET STUCK WITH DEBT AND
IN SOME CASES RENTS BUT WITH
HIGHER DEBTS, SO THE
UNIVERSITIES GET THE MONEY
AND THE STUDENTS ARE LEFT
HOLDING THE BAG SO YOU GOT TO
STOP THAT CORRUPT GRAVY TRAIN OF
MORE AND MORE MONEY GOING TO
UNIVERSITIES AND STUDENTS
GETTING STUCK WITH THE DEBT.
DAVID: THE WALL STREET JOURNAL
SAYS THE GOVERNMENT SUBSIDIZES
DEBT, COLLEGES RAISE THEIR
PRICES, STUDENTS ARE TOLD TO GET
MORE DEGREES SO YOU HAVE
CREDENTIAL INFLATION KICKING IN
AND TAXPAYERS EAT THE LOSSES AND
DO THEY GOT IT RIGHT?
>> THEY DO INDEED.
THEY ARE 255 MILLION ADULTS IN
THIS COUNTRY, DAVID, 45 MILLION
HAVE STUDENT DEBT, 210 MILLION
DO NOT.
WHY SHOULD THOSE 210 MILLION BE
SUBSIDIZING THE OTHER 45 MILLION
IT’S NOT RIGHT, SO THEY GOT TO
GET TO WHAT THE DEMOCRATS LOVE
TO CAUSE THE ROOT CAUSE, THE
ROOT CAUSE OF THE PROBLEM IS
BUREAUCRATIC BLOUT, OBESITY IN
THE UNIVERSITIES AND THEY GET
MORE AND MORE MONEY, MORE
AND MORE ADMINISTRATIVE COSTS
NOT SO MUCH FOR THE CLASSROOMS
AND STUDENTS AND THE TAXPAYERS
GET LEFT HOLDING THESE
OBLIGATIONS.
NOT RIGHT.
DAVID: YOU KNOW A LOT OF PEOPLE
SAY EVERYTHING DEPENDS ON THE
GEORGIA ELECTION, IF IN FACT
THE RUNOFF COMING IN JANUARY, IF
THE DEMOCRATS DON’T TAKE BOTH OF
THOSE SEATS, BOTH OF THOSE
SENATE SEATS IT’S UNLIKELY
THAT THE BIDEN ADMINISTRATION
WILL GET ANY OF THIS PASSED
THROUGH A REPUBLICAN SENATE;
HOWEVER, PRESIDENT OBAMA DID A
LOT IN THIS DIRECTION IN TERMS
OF FORGIVING DEBT BY JUST
CHANGING THE RULES.
UNDER OBAMA’S RULE CHANGE
BORROWERS WHO COULDN’T AFFORD
THEIR MONTHLY PAYMENTS MERELY
HAD TO AGREE TO MAKE 10% OF
THEIR DISCRETIONARY INCOME FOR
20 YEARS, OVER A 20 YEAR
PERIOD, 10 YEARS BY THE WAY IF
YOU HAD PUBLIC SERVICE.
IT’S ALL KIND OF WIGGLE ROOM AND
56% OF ALL LOANS ISSUED TO
GRADUATE STUDENTS ARE NOW BEING
REPAID THIS WAY SO BY MORE RULE
CHANGES, BIDEN COULD ESSENTIALLY
DO THE SAME THING THAT OBAMA DID
, WHICH IS A FORM OF DEBT
RELIEF.
>> THAT BE CHALLENGED IN THE
COURT, BUT YOU HIT A GOOD
POINT.
THERE ARE ALREADY PROGRAMS IN
PLACE TO HELP PEOPLE PAY THESE
DEBTS BACK, TAKING A PERCENTAGE
OF INCOME AND SO YOU DON’T GET
CRUSHED BY IT AND AFTER 20-
25 YEARS IN SOME CASES THE
REMAINING PRINCIPAL IS
FORGIVEN, ONLY 43% OF GRADUATES
ARE AWARE OF THESE PROGRAMS SO
THEY COULD TAKE ADVANTAGE OF
THOSE , BUT THEY GOT TO GET TO
THE REALLY ROOT CAUSE OF IT AND
AS YOU KNOW, DAVID, PURDUE
UNIVERSITY, RUN BY MITCH DANIELS
, HAS NOT RAISED TUITION
FOR ALMOST EIGHT YEARS, AND A
TUNE UNIVERSITY, THEY HAVE
INCREASED THE NUMBER OF TENURED
PROFESSORS FOCUS ON REAL
ADMINISTRATIVE MANAGEMENT, AND
THAT WAY, THE STUDENTS DON’T GET
STUCK WITH THESE DEBTS, AND
THEY’VE ALSO GOT SOME VERY
INNOVATIVE PROGRAMS TO HELP
STUDENTS COPE WITH THE LOW
TUITIONS THEY ALREADY HAVE, AND
SO WHY CAN’T THE REST OF THE
COUNTRY FOLLOW THE EXAMPLE
OF PURDUE UNIVERSITY?
DAVID: WHY CAN’T HARVARD AND
YALE AND OTHERS WITH BILLION
DOLLAR ENDOWMENTS HAVE FREE
TUITION?
THAT’S ANOTHER QUESTION FOR
ANOTHER DAY.
STEVE FORBES GREAT TO SEE YOU