TOO.
SO LONG, EVERYBODY.
JACKIE: THE COMMITTEE FOR A
RESPONSIBLE FEDERAL BUDGET
ESTIMATES EX-TENTING THE STUDENT
LOAN PAYMENT PAUSE WOULD COST
ANOTHER $40 BILLION.
THAT WOULD MAKE THE TOTAL COST
NEARLY 200 BILLION.
JOINING ME NOW, PRESIDENT OF THE
COMMITTEE FOR A RESPONSIBLE
FEDERAL BUDGET, MAYA MAGINNIS.
GREAT TO SEE YOU.
THIS IS A CONVERSATION WE’VE
BEEN HAVING ALL HOUR AND IT’S A
REALLY BIG DEAL FOR PEOPLE WHO
DID PAY THEIR STUDENT LOANS, FOR
PEOPLE WHOSE PARENTS WORKED
THEIR FINGERS TO THE BONE TO PUT
THEM THROUGH COLLEGE AND WE’RE
SITTING HERE RIGHT NOW AND AFTER
THE PANDEMIC, TWO YEARS OUT OF A
PANDEMIC AND WE’RE LOOKING
CONTINUED PAUSES.
THIS IS THE 8th TIME THIS
ADMINISTRATION HAS PAUSED
STUDENT LOAN PAYMENTS.
YOU KNOW, THEY WANT TO FORGIVE
10 TO $20,000 PER PERSON UNDER
CERTAIN INCOME THRESHOLDS.
THAT’S ABOUT A
400 BILLION-DOLLAR PRICE TAG.
>> YEAH.
THIS IS A REALLY BIG DEAL AND IT
IS A POLICY WHILE I THINK WE ALL
UNDERSTAND MANY PEOPLE ARE
STRUGGLING WITH STUDENT DEBT,
THAT IS AN ACTUAL PROBLEM WE
HAVE TO THINK ABOUT, THIS DOES
NOT SOLVE THAT AND IN FACT THIS
IS A POLICY THAT IS INCREDIBLY
EXPENSIVE, IT IS INFLATIONARY,
IT IS REGRESSIVE, HELPS PEOPLE
WHO DON’T NEED IT MORE THAN
THOSE WHO DO, IT IS UNJUSTIFIED
IN TERMS OF POLICY.
IT WILL MAKE THE PROBLEM WORSE.
I CAN’T THINK OF A JUSTIFICATION
WERE THIS IS THE RIGHT POLICY TO
FIX THE PROBLEM THE
ADMINISTRATION IS TRYING TO FIX
WITH THIS IT WILL CAUSE A LOT
MORE PROBLEMS, PARTICULARLY IN
THE ECONOMY, IN THE CONDITIONS
WE CURRENTLY ARE FACING.
JACKIE: WE’RE DEALING WITH
ISSUES OF INFLATION.
WE TALKED ABOUT HOW A LOT OF
BASICALLY THE INSTITUTIONS WILL
BAKE THIS INTO THE CAKE, RAISING
TUITION PRICES UNDERSTANDING
THAT THIS FORGIVENESS BECOMES,
IF IT WERE TO BECOME A PATTERN,
FOR EXAMPLE, THAT IT DOESN’T
REALLY SOLVE THE ISSUE WHY
TUITION COSTS ARE SO HIGH.
THAT IS REALLY THE ROOT PROBLEM
IF YOU WANT TO ADDRESS IT.
>> ABSOLUTELY SO WHAT YOU WANT
TO DO, IS YOU WANT TO HAVE A
STRUCTURAL FIX TO SOMETHING LIKE
THIS WHERE THE PROBLEM IS, THE
WAYS IN WHICH WE SUBSIDIZE
HIGHER EDUCATION ACTUALLY DRIVE
THOSE PRICES UP.
THAT IS WHY THE PRICE OF HIGHER
ED IS CONTINUING TO GROW FASTER
THAN THE ECONOMY OVERALL.
THEN POLITICIANS SAY WE’LL THROW
MORE MONEY AT THE PROBLEM.
MORE PEOPLE ARE NOT PRICE
SENSITIVE.
IT ACTUALLY DRIVES THE COST OF
HIGHER ED UP.
WE CALCULATED OVERALL STUDENT
DEBT WILL BE BACK TO THE SAME
LEVELS IT ALREADY IS AFTER VERY
EXPENSIVE DEBT FORGIVENESS AND
VERY UNFAIR DEBT FORGIVENESS IN
JUST A FEW YEARS.
WHAT YOU REALLY NEED TO LOOK AT
IS, WHY ARE WE SUBSIDIZING
EDUCATION THAT ISN’T PAYING OFF
FOR STUDENTS?
IS IT BECAUSE THE UNIVERSITIES
ARE NOT THE RIGHT ONES FOR THEM?
THEY’RE NOT GREAT HIGHER ED
INSTITUTIONS?
HOW COME THOSE INSTITUTIONS
DON’T HAVE SKIN IN THE GAME
WHICH WOULD MAKE SURE THEY WERE
MORE IN LINE WITH MAKING SURE
PEOPLE GRADUATE AND MOVE ON TO
JOBS WHERE THEY’RE ABLE TO
AFFORD WHAT THEY BORROWED AND
NOT BORROWING TOO MUCH?
JACKIE: THAT IS A GREAT POINT ON THE SIDE OF THE INSTITUTION.
THE SIDE OF THE INSTITUTION.
THERE IS ALSO THE MOTHER-IN-LAW
MORAL HAZARD PART OF THE
ARGUMENT.
YOU START SETTING A PRECEDENT
YOU TELL PEOPLE YOU CAN GET OUT
AND BORROW, IF YOU GET IN OVER
YOUR SKIS, WHETHER EDUCATION OR
SOMETHING ELSE THERE IS A
BACKSTOP THERE, THERE WILL BE A
GOVERNMENT CHECK TO HELP YOU
OUT.
THAT IS A VERY SLIPPERY SLOPE.
>> ABSOLUTELY.
RIGHT NOW YOU WILL HAVE ALL
SORTS OF COLLEGES AND
UNIVERSITIES TO TAKE ON DEBT,
WINKING THE CHANCE OF THAT BEING
FORGIVEN IS QUITE HIGH.
IF YOU LOOK WHAT IS HAPPENING
NOW WHERE THE BIDEN ADMINISTRATION KEEPS ADDING ON
ADMINISTRATION KEEPS ADDING ON
MORE POLICIES, PROGRAMS THAT ARE
REGRESSIVE AND EXPENSIVE THAT
DON’T MAKE SENSE WE CAN’T AFFORD
THAT IT IS NOT FAIR, YOU
MENTIONED THIS IN THE BEGINNING
IT IS NOT FAIR TO THE PEOPLE
THAT WORKED REALLY HARD, PAID
OFF THE DEBT AND IT CREATES
TERRIBLE INCENTIVES IN THE
ECONOMY OVERALL.
YOU CAN’T DO ENOUGH TO POINT OUT
INFLATION IS AT A 40-YEAR HIGH.
WE SHOULD NOT BE DOING THINGS
THAT ADD TO THE DEBT AND CAUSE
PEOPLE TO SPEND MORE RIGHT NOW.
WE NEED PEOPLE PAYING DOWN THEIR
DEBT.
THE IRONY WE’RE SAYING WE’LL
FORGIVE THE STUDENT DEBT BECAUSE
WE’RE NOT PAYING FOR THIS POLICY
YOU WILL HAVE GOVERNMENT DEBT
THAT IS MUCH HIGHER ON THE OTHER
SIDE.
WE’VE JUST STOPPED PAYING FOR
ANYTHING THESE DAYS.
AS THOUGH WE CAN’T GET ENOUGH OF
BORROWING.
WE HAVE TO BRING IN FISCAL
RESPONSIBILITYS IS THIS REALLY
WORTH IT? HOW WILL YOU PAY FOR
IT?
I CAN PROMISE YOU THE
ADMINISTRATION HAT NOT SAID ONE
WORD ABOUT PAYING FOR THE
EXPENSIVE, REGRESSIVE POLICIES.
JACKIE: MANY FOLKS ACROSS THE
COUNTRY ARE WORRIED ABOUT.
PRESIDENT BIDEN USING EXECUTIVE
AUTHORITY TO FORGIVE THE LOANS.
THAT IS BEING CHALLENGED IN THE
COURT SYSTEM.
A FEDERAL JUDGE IN TEXAS SAYING
NOPE, YOU CAN’T DO THAT NOW
THEY’RE SAYING OKAY, WHILE IT IS
UNDER REVIEW, WHILE WE’RE
FIGHTING THAT DECISION WE’RE
JUST GOING TO PAUSE THE PAYMENTS
UNTIL JUNE 30th OF 2023.
MAYA, WE’LL SEE WHAT HAPPENS.
WELL CONTINUE TO FOLLOW IT AND