I mean yes we are going to be living i mean i have an economic forecaster but everything i read suggests we are going to be living with an unusually high levels of unemployment, a lot of pain from over indebtedness and a quarter of the country is on food stamps. I mean its not a great depression. We are not repricing exactly what happened in the 30s but its a version of that. See the Consumer Financial Protection Bureau estimates that Student Loan Debt is more than a trillion dollars. Up next the Senate Budget committee looks at how that that affects borrowers and the economy as a whole. This is an hour and a half. [inaudible conversations] see this hearing will come to order. I want to thank senator johnson who is filling in today for my Ranking Member senator sessions. Welcome to you and all of our colleagues who are joining us today as well as a roomful. Welcome to all of you on a really important topic today. We are going to be talking about a challenge that 40 Million People aroun
People have to turn to Student Loans to help finance their education. In just a few moments you will hear from britney jones. Shes going to be talking about how taking out Student Loans made it possible for her to get a College Degree and britney id look forward to hearing more about your experiences. You were to start a teaching career and the same time paying down the student loan the but later college. Of course britney is not alone. Dealing with overbearing student debt is becoming a reality for growing number of americans. Statistics are staggering. Today the average College Graduate will have to pay back around 30,000 in Student Loans and a Record Number of young households owe student debt. Back in 1989, 16 of young households have student debt. By 2010 that figure had more than doubled according to the pew research center. More young people than ever before are dealing with more student debt than ever before and that can have lasting consequences. Americans who took out school
Witnesses today. Theres a lot of attendance today. Obviously a discussion that many people are interested in. We do have a series of four votes beginning in a halfhour so im going to be very strict with the time clock today in allowing five minutes to each senator and well be calling on people in order of arrival. So with that, ms. Jones, i wanted to start with you and thank you for sharing your story and being here today to testify. Your story actually really resonates with me. All of my brothers and sisters and i went to college on pell grants and Student Loans to finance our education and i taught Young Children early on in my career which is actually what got me into politic to pe begin with. But the financial burden of Student Loan Debt is considerably more than when i graduated. So i share your understanding and appreciate your being here. In your testimony you said that you paid over 600 dollars a month to cover your federal Student Loans. How much was your monthly take home pay
Programs. Rising income inequality has been associated with more federal Student Financial Aid Assistance and i dont think that is coincidental. In my written testimony i shall concerns about several Administration Initiatives including the College Rating system and gainful employment regulations but i want to briefly comment on the proposal of senator warren to lower Interest Rates on loans to pass borrowers. I think this is a bad idea for several reasons. Beginning with the fact that it does utterly nothing to address College Tuition inflation. Conscientious payers and debt obligations end up getting punished relative to nonpayers who get lower Interest Rates, a bad message. It will also add tens of millions of dollars to the deficit and national debt. There are other objections as well. We may be a senator johnson hinted over investing in some ways in Higher Education. The advantages of getting a degree are actually starting to decline not increase particularly for young graduates.
To be suggested, by my friend from rhode island, that dr. South is part of a fringe into me, this is the very kind of public intimidation and insulting rhetoric that professor lee gates has talked about experiencing at the university of delaware. I take exception to it. Now dr. Lee gates, your signatory of the petition, are you not . Yes sir. That petition says there is no scientific no convincing Scientific Evidence that Carbon Dioxide or other Greenhouse Gases are causing a real and perceivable can conceivable heating of the earths climate. I believe there are 30 some thousand people that sign the petition. 30 some thousand people . Would you describe them . Many of them are scientists, phds in other disciplines. People connected with Climate Change and doing research in the areas. I have to say, i appreciate someone standing up and challenging the conventional wisdom. Martin luther did that. Martin luther king did that. I appreciate people that are willing to hold up their hand and