NewsNation | June 26, 2012
>>> it's showdown time again, as if showdown time ever left. we have been talking a lot about student loans and unless congress acts, interest rates on federally subsidized loans will double this saturday to 6.8%. there is a partisan battle over how to pay the nearly $6 billion price tag for extending the rate for another year. we have law professor glen harlan.
>> i always -- the bottom line is for people who have student loans , the mere thought of your rate going up by this significant amount could put you out of your home, could keep you have having a vehicle, maybe even going into repo, this is real dollars, when you talk about billions, people can't relate to that. but you're talking about --
>> current student loan payers, the average student loan borrow borrower will be affected to the tune of about 1,000 throughout the loan. but the average student loan borrower is not the one that has a six figure loan.
>> i don't know the exact percentage, it's a significant number and i personally have had students graduate with as much as $400,000 in student loan debt. it's just really quite distressing and i think that's really the mistake of arguing about student loans , the problem is not so much student loans , but the fact is that college costs have gone up so high. college costs have gone up faster than income, faster than medical costs and housing costs and it's something that can't go on forever, and this just can't go on forever.
>> when you talk about higher learning , people feel that perhaps we are to fault meaning people who want to go to prestigious universities or universities with these higher costs and they don't select out these yuan universities that don't cost quite as much.
>> for a lot of people a prestigious college has been a buy in to a higher level of the american cast system. and student loan debt the crippling. if you ran up several hundred thousa thousand --
>> we know that the boogie man used to be credit card debt , but after the recession, many people pulled away from credit cards , but to your point, student loan debt is very different.
>> yes, it absolutely follows you more or less forever, it's extremely hard to get out from under. and right now, there's actually more student loan debt than there is credit card debt in this country and a substantial portion of it is late, people are not paying on time, they're not paying their balances down. there are $279 billion in student loan payments that are more than 30 days overdue. that's pretty serious.
>> that is very serious.
>> we will see if congress acts before it is too late for those students who could be affected by this. glen reynolds, i certainly appreciate your time.