Government-funded loans hurt students ft. Andy Puzder | #TruthStraightUp
♪ Puzder: In the 1970s, during
the end of my law school career, I needed a loan to graduate.
I had to go to a bank. The government guaranteed
the loan, but the bank was involved in the credit-making decision.
The bank was involved in the process. I had to pass
their test, which meant I had to show them that
I could repay that loan. In 2008, Barack Obama
made the decision to remove the banks from the
decision-making process on student loans. All of a
sudden, the spigot was turned on. Schools began to raise tuition.
They raised administrator salaries, they raised professor salaries,
and they built new buildings. There were unlimited funds,
and it all came from students who were guaranteeing,
in effect, that debt, who were funding all of these expenses.
Over the last few years, by the times these funds
really began to build up, an education became worth
less than what it cost to get that education.
When the government gets involved in something,
costs always go up, quality always goes down.
In this case, it’s the students
that suffered. ♪