Government-funded loans hurt students ft. Andy Puzder | #TruthStraightUp


♪ Puzder: In the 1970s, during
the end of my law school career, I needed a loan to graduate.
I had to go to a bank. The government guaranteed
the loan, but the bank was involved in the credit-making decision.
The bank was involved in the process. I had to pass
their test, which meant I had to show them that
I could repay that loan. In 2008, Barack Obama
made the decision to remove the banks from the
decision-making process on student loans. All of a
sudden, the spigot was turned on. Schools began to raise tuition.
They raised administrator salaries, they raised professor salaries,
and they built new buildings. There were unlimited funds,
and it all came from students who were guaranteeing,
in effect, that debt, who were funding all of these expenses.
Over the last few years, by the times these funds
really began to build up, an education became worth
less than what it cost to get that education.
When the government gets involved in something,
costs always go up, quality always goes down.
In this case, it’s the students
that suffered. ♪

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22 thoughts on “Government-funded loans hurt students ft. Andy Puzder | #TruthStraightUp

  1. You did hit the nail right on the head..These kids aren't just funding their educations but also their lifestyles with student loans.. and now the bill comes due..

  2. We've had this ongoing here in New Zealand for many many years, well before Obama did what he did to America and the student loan scheme. Around 728,000 people here in New Zealand now owe over 15 BILLION dollars. New Zealand is a small country so a debt this big for this topic for this size of a country is major. At the end of 2018, the New Zealand IRD (Inland Revenue Department – much like America's IRS) lost track of thousands of student loan debtors that had left New Zealand to live and work in Australia, and that wasn't even the beginning. I myself have gone through this process of getting a student loan out to cover my expenses.

    What has happened over a period of time is that everything became more expensive, lessons were cut back or cut off completely so you could not learn certain subjects and teachers/tutors/professors were laid off, and not due to the lack of student interest in such subjects as was widely claimed by the media here in New Zealand, but because they wanted to make it seem that way.

    While I studied, I met a number of students who were jumping onto a course for a few weeks so they could get the course-related costs, get all the perks you could get within the first few weeks, then they would leave and jump on another course the following year, many of those students having done this numerous times.

    The sad reality is that a majority of the students that have taken out loans will not ever pay that money back either because they are not able to get a job that would enable them to make enough to meet the threshold to make repayments, because they cannot find a job they're qualified to do, or because they chose not to look for work and expect the government to pay for them with social welfare, or there is the smaller group that for one reason or another have mental health or physical issues and are not in a position to be able to work.

    As someone who has seen the steady decline of this scheme which was established in 1992, let our country stand as a warning against continuing something that only increases the national debt instead of lowering it and finding a different way for people to still get some type of education that benefits them and helps to get them into work.

  3. Student loans have not been credit based for a long time before obama. HERES the real deal. ONLY federal loans should be protected under BK not private loans. Talk more about private loans and bridge loans made by BANKS that have the same protection against BK that the Feds do. Why shouldn't anyone be able to include a student loan in bankruptcy that is made by Bank of America or any other bank for that matter. Fed loans are safe but private loans can be 11-15% which is a floating rate not even fixed. Best shadiest deal bush and and those like biden ever put together!

  4. Yup he just s exactly right. I started college in 08 and I saw it happen. And they never explained how much I was projecting to be indebted to the government by the time I graduated. I guess that’s my stupid fault,right?

    By 2010 I saw a low level administrator driving a brand new Mercedes SUV, I started to become suspicious of a scam.

  5. Not just the students suffered. All citizens did. My tax dollars went to fund high college rates. The government paid off loans if you took certain government jobs. How is that fair? The loans took millions of people out of the work force. Lots of other examples I can give if anyone is interested.

  6. And the government is not just providing loans, but pushing them like a schoolyard drug dealer. The government lies about the benefits, claiming a future need for certain jobs that truly doesn't exist.

  7. Couldn’t agree more. When banks were involved you had to have a reliable history of debt repayment, a degree program that would generate sufficient income for loan repayment and a grade point average that would indicate your ability to secure such employment. None of those requirements remain for student loans today. When I graduated high school it was still possible to work and pay your way through college debt free but with student loan fueled tuition hikes today that is effectively impossible. Get the government out of the student loan guarantee business NOW!

  8. Our young generation's brain is literally hijacked by the drugs, crossing the borders as we speak & ruining the lives of millions of the families & we think we can afford to have OPEN BORDERS? 1 brick of Car-fentanyl, 4,000 times stronger than Heroin, it's original value of $1,000 with the profit revenue of $5-10 million? I give lectures to my colleagues, patients, their families, the real data had been hidden for a long time & it's not pretty! Under Obama's presidency the ratio of the facilities to help children with addiction vs.prisons for kids was @!
    Former President Barack Obama’s top immigration chief in charge of removing illegal immigrants said that the “cages” Democrats have accused President Trump of housing children in were the brainchild of the Obama administration.
    Pay attention to Democrat rhetoric on illegal immigration.They want us to pay for their healthcare & education. They want them to vote.They want them to escape law enforcement. But how many do they want to let into the USA? 5 million? 15 million?
    25 million? Everyone???
    Europe thinks it has an illegal alien problem!
    Until Trump, we had 1,200,000 illegals/year & some say it's more like 2,500,000/year!
    If Democrats take power in November, all illegals will be declared legal & immigration will top 10-15 million/year.Totally fed up with Chuck's false outrage & pathetic, condescending snobbery!
    Yes, I've identified the party to myself, it's called "ANTI-LIBERAL"!!!
    Yes, my choice is clear, & I'm very comfortable, that my vote will go to the non-perfect & non-flawless man, the president of USA, Mr.Donald J.Trump!

  9. Amazing why students never ask why is education costs so high …… Yet they vote for the very same leftists that keep the costs rising , these kids won't even research their own schools to see how their own school is funded , most all have millions and billions in surplus .
    Get the government out of education , the costs plummet to being actually affordable .

  10. My husband and I are buried financially by paying back our student loans. It makes our life so hard and I am sick of the government killing the middle class. We were so dumb and naive when we signed for them. What can I do now to get the government out of the business of student loans?

  11. Demographic shifts means Virginia is now in the Democratic column for presidential elections. www.usnews.com/news/politics/articles/2018-11-14/midterm-election-confirms-virginia-is-a-blue-state

  12. It is one thing to have some limited government support for non-commercially viable degrees that benefit some broad need or interest of the citizenry. But that should be in the form of grants, not loans. Everything else should be done by banks, and be based on commercial viability of the program and the ability of the individual to achieve. Certainly perhaps some government subsidy or guarantee for particularly impoverished or underprivileged persons on a case by case basis, but still only for commercially viable degrees.

  13. When ever government gets involved in what should be a private enterprise responsibility, everyone suffers. In this case students, educational quality, and the taxpayers. This explains the popularity of our youth for socialism. All this can be traced to Obama's intervention into education when he opened the gates for easy loans for students via the government. After a while every student needed to take out a loan since it became finanically impossible to get an education since the universities raised costs so high! Please recirculate since most people don't understand how this vicious cycle started.

  14. He just said that when the government guarantees things, private companies will raise the prices on things…

    You know what fixes these price hikes? Government regulation. More of it.

    This has nothing to do with government ineffeciency, idiots.

  15. Bernie is winning because most people don't blindly believe what the previous CEO to Carl's Jr tells them on YouTube.

    Billionaires don't want Bernie to raise their taxes and other countries have free college.

    Plain and simple.

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