tv Washington Journal Melissa Emrey- Arras Discusses Income- Based Student Loan... CSPAN January 30, 2017 1:29pm-1:42pm EST
>> the white house briefing starting shortly. briefing starting shortly. we'll have it live for you here when it gets under way on c-span. until then a conversation from this morning's "washington journal." looking at student loan cost. hi. host: each week in this segment "washington journal" we look at how your money is at work in different federal program. talking about how much certain student loan repayment costing federal
taxpayers. melissa emrey-arras the governmentth accountability office. take us through the balance sheet for the federal government to student loans. how much has been loaned out, how many borrowers are out there? sure. we looked at cost of the student loan program and found that for loans, loans he that are called income driven repayment loans, the cost is to be $74 billion for the federal government. represents over 5 million it is a program are helps people who struggling to repay their loans be able to afford to pay back less each month. host: and this is in the universe of a whole lot of loans, something on the federal $900 billion in direct loans given out. how many student doeses that represent? 24% of the students are participating in these direct loans and that is over
500 million people. we have quite a few people, uite a few loans and many are struggling to repay them back. host: let's go through the repayment process. delinquency, how often does that happen in general when it comes loans?ent guest: 20% of people are loans.uent on over one million borrowers are areefault, which means they delinquent by 270 days or more. experience real challenges with student loans. host: in an effort to stave off the federal government created income-driven repayment plans? guest: correct. host: what do they do? uest: change mechanics of the student loan repayment plan. borrowers pay back their loan years, in urse of 10 this case,hatierd es lgetime pio 2 ar5 art paes ea monthhepapeenge bad tirnce d d
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twpotseaui. on ueranwh'srong th arins vislwee ilg o gh soo bauseheyo si a not youregrino y atert ouorw. d'tarwhetheyoar yi aarho, ayg r urolge i idorywnolge i rkro0: anit unl 60 m. in eorng we sait to ho. dghr st gduedhi stea shaid fohe soo anifeoe wldust pa what they age to p, we wouldn'taveroblem it'she samthing that caused rousingrisisroblem peopleave a probmaying r thin because tyon't dersta when theyign on notehat they owthe money. thank you. host: thanks for the call. default rate is what he's discussing there. are kids today defaulting more than the kids -- students ofester year? guest: that's a good question. default rates have fluctuated over time. yet the consequences can be pretty significant for those who are in those situations. people who default can have
their credit scores affected t can be difficult for them to get a mortgage. it can be difficult for them to get a car. get a job. so there are real negative effects to defaulting on your student loans. host: jeffrey, auburn, new york. good morning. caller: good morning. yes. please don't cut me off. i am a graduate of the art institute of pittsburgh. which "the new york times" called the biggest fraud in academia, a while back. the government just settled a lawsuit. there was $11 billion lawsuit against edmc corporation. and a 40% shareholder is chase manhattan bank. currently owe $25,000 on $6,000 in principal. my interest rates and penalties come first. i am not even touching the principal. i am in repayment for the last three years.
which i have paid about $2,500 per year and it is only touching interest rates and legal penalties and collection fees. i still haven't touched the interest -- principal on this. i'm a cook at the county jail. i make $12 an hour. of which i am paying $250 a month in student loans. the reason i defaulted is they guaranteed lifetime placement and a job in art career. graphic artist. and the art institute of pittsburgh swindled me. i can't get he recourse. i have written my congressman over the last 20 years or more. they didn't finally succeed in collecting from me until my daughter was full grown because they couldn't garnish my wages while i was paying child support as a single father. i'm making a pitans of that $12 an hour, i'm making probably
take home about $7.50 after paying student loans. i am in poverty. i shop at the salvation army. i shop at flee -- flea markets and dollar stores. i don't get any assistance except for section 8 and heat. but i'm living on next to nothing and i'm 58 years old. ready to retire in seven years. and i don't expect to even touch the principal on my $6,000 of outstanding loans by the time i'm 67. host: do you think those loans are going to outlive you? caller: they are totally unfather. i can't declare bankruptcy. yes, they will outlive me. would rather spend a year in debtor's prison, seriously, and declare these bankrupt. i can't declare bankruptcy on student loans. i have contacted my congressman. i have written obama. schumer. gilly brand. -- gillibrand.
my congressman gave meet rush out of the office. i have written everybody and their mother. including the afl-cio which i was a union member. and the american civil liberties union. i have written all kinds of lawyers. attorney tten the generals of new york and pennsylvania. i should be included in this lawsuit which is forgiving student loans that were taken out on art institute of pittsburgh. they are bankrupt. host: thanks for sharing your story. give melissa chance to comment. guest: i would be happy to. thank you for those points, jeffrey. i can't speak to the specifics of the situation, i think there's some important issues that you have raised. one is the concern about fraud and how that relates to student loan payments and the borrowers who have been defrauded by schools. there have been some provisions put in place for some of those
borrowers to get relief from their student loans. and there are new regulations issued this past fall along those lines as well. in addition, one thing to think about if folks have defaulted on their student loans, although they are not -- >> welcome back. great to see everybody. thank you-all for coming. good to see interest is still there. i want to start off by noting the president got off the phone a short time ago with canadian prime minister trudeau to discuss the vicious attack on a quebec city mosque last night. the president offered his condolences as well as his thoughts and prayers to the victims and their family and all