During an interview on “Mornings with Maria,” Thursday, personal finance expert Dan Roccato discusses President Biden’s action plan to combat student loan debt, arguing that it will only raise tuition and inflation rates, thus further depleting the U.S. economy.
DAN ROCCATO: …Good politics it may be, bad economics it certainly is. So, you know, it’s hard to say exactly how much tuition will increase, although I saw one estimate this morning, somewhere between 0.1. 2% will be the overall increase in the inflation rate. But here’s the deal. All colleges aren’t the same. Many of them are focused on value. I happen to work for one that really spends a lot of time and effort focused on value and outcomes. Good stuff. Unfortunately, however, they’re not all there, and we see a lot of times that colleges are essentially churning out students or worse, enrolling students who never get churned out, Maria.
We know we have one third of student loan holders who don’t even have a degree, right? And that really is egregious. But we see some colleges churning out students that in many cases are underemployed. Right. So according to a Fed study, we’ve seen over 20% of recent graduates underemployed. They’ve got that basket weaving degree that costs a couple of hundred grand, but they’re making lattes. Nothing against basket weaver. So that really fundamentally is the issue. We have to have more accountability at the college level as well. And this bill or, sorry, this action by the president doesn’t do that.
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WATCH THE FULL INTERVIEW HERE: