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And they need to realize that when they take out debt that they are liable to repay that debt. - someone might say, listen, you took out a loan. you pay it back. it s simple. like, don t be irresponsible. what do you say to that? - i think i would have said that totally makes sense eight years ago when i was 17. - let s not forget. these are kids being told to sign on the dotted line. no parental consent necessary. - my 17-year-old self was very unprepared for all of those details. - but some in the media say that s no excuse. - the students knew exactly what they were getting into. - you knew what you were getting into. when someone says that, they don t get it. - most people don t know what they re actually signing up for. there s a whole series of gimmicks played in the industry that attempt to cloud what the actual picture looks like. - the lenders become very creative in how they can inflate a loan. - what they do is, they give you the teaser rate to start. it s artificially low. ....
Essentially at will. - and you re paying for it. and college lenders know that. so the more obscene the tuition, and the more ridiculous the gimmicks that colleges play, the richer college lenders become. - so just having the threat of bankruptcy forces the lenders to behave rationally and with a modicum of good faith. - and without those bankruptcy protections, we re left with a self-perpetuating system of greed. - you know, from the outset, this was a legislatively manufactured crisis. - it was the 1998 reauthorization of the higher education act. - the senate will now vote on the adoption of the conference report accompanying hr-6. - mr. biden, mr. bingaman, mr. durbin, mr. feingold, mrs. feinstein, mr. ford. - was there, like, an uproar when this happened? was this, like, a big headline at the time? - there was no headline. in fact, i don t think most congressmen even knew that it happened until probably weeks, months, ....
Essentially at will. - and you re paying for it. and college lenders know that. so the more obscene the tuition, and the more ridiculous the gimmicks that colleges play, the richer college lenders become. - so just having the threat of bankruptcy forces the lenders to behave rationally and with a modicum of good faith. - and without those bankruptcy protections, we re left with a self-perpetuating system of greed. - you know, from the outset, this was a legislatively manufactured crisis. - it was the 1998 reauthorization of the higher education act. - the senate will now vote on the adoption of the conference report accompanying hr-6. - mr. biden, mr. bingaman, mr. durbin, mr. feingold, mrs. feinstein, mr. ford. - was there, like, an uproar when this happened? was this, like, a big headline at the time? - there was no headline. in fact, i don t think most congressmen even knew that it happened until probably weeks, months, ....
All right, to be fair, they do deserve a fresh start. mostly. but student borrowers deserve that option too. now that doesn t mean everyone s going to run out and file bankruptcy, or that they even should. there s something much bigger at play here. - in the absence of the threat of bankruptcy, you open the door for widespread abuse by the lenders. - without bankruptcy as an option, college lenders now frivolously lend out as much money as they can to anybody who wants to apply because repayment is guaranteed. it s up to the student to pay it back no matter what. there is no bankruptcy option. - the lenders know you can t run, you can t hide. so this essentially gives them a license to steal. - when lenders have no incentives to restrict who they re lending to or how much to loan out, guess what happens to tuition costs? - the colleges raised their price, ....
And they need to realize that when they take out debt that they are liable to repay that debt. - someone might say, listen, you took out a loan. you pay it back. it s simple. like, don t be irresponsible. what do you say to that? - i think i would have said that totally makes sense eight years ago when i was 17. - let s not forget. these are kids being told to sign on the dotted line. no parental consent necessary. - my 17-year-old self was very unprepared for all of those details. - but some in the media say that s no excuse. - the students knew exactly what they were getting into. - you knew what you were getting into. when someone says that, they don t get it. - most people don t know what they re actually signing up for. there s a whole series of gimmicks played in the industry that attempt to cloud what the actual picture looks like. - the lenders become very creative in how they can inflate a loan. - what they do is, they give you the teaser rate to start. it s artificially low. ....