at a fraction of one percent and sallie mae's using that to do private loans at a full market rate and producing enormous profits if we can lend those funds to sallie mae for those loans at a fraction percent why can't we when those funds directly to a student and enable them to take advantage of those enormous savings this approach would certainly help to reverse the trend of rising student loan debt student loan debt has nearly quadrupled since two thousand and three outpacing both credit card debt and auto loans payments on the loan start after graduation but with record levels of unemployment and underemployment for young college graduates making these payments is a struggle to neha delaney graduated from the university of virginia two years ago now she is underemployed working part time in a coffee shop to pay off her student loans i think it will take years to pay off probably. i'll be in my forty's before finish paying them off and once i get a high paying job really soon then it wouldn't be an issue saving money is not an option for her i mean i live at home which is very n

at a fraction of one percent and sallie mae's using that to do private loans at a full market rate and producing enormous profits if we can lend those funds to sallie mae for those loans at a fraction percent why can't we when those funds directly to a student and enable them to take advantage of those enormous savings this approach would certainly help to reverse the trend of rising student loan debt student loan debt has nearly quadrupled since two thousand and three outpacing both credit card debt and auto loans payments on the loan start after graduation but with record levels of unemployment and underemployment for young college graduates making these payments is a struggle to neha delaney graduated from the university of virginia two years ago now she is underemployed working part time in a coffee shop to pay off her student loans i think it will take years to pay off probably. i'll be in my forty's before finish paying them off and once i get a high paying job really soon then it wouldn't be an issue of saving money is not an option for her i mean i live at home which is ver

sallie mae borrows at one-third of 1% in a program that is supported by the federal government and then does a markup on student loans. it's time for the government to stop making a profit off our students. thank you, mr. chairman. >> be senator brown. >> thank you, mr. chairman. mr. chopra, give me your thoughts on our refinancing re-fi for the future act and answering some of the questions and concerns on the 150 billion outstanding dollars and for the future what this means for private bank loans? >> so without knowing specifics, i can say that it is absolutely important that we address the large population of existing borrowers and not just the new borrowers. many of those existing borrow or es were certainly victims of a financial crisis that they played no role in creating, and they wonder why they've been unable to take advantage of today's historically low rates. and just as in 2008 there were market failures that provided for temporary authorities to insure financial institutions could originate loans, there's no authorities currently to jump-start that sort of market. so it se

sally mae. i think that's part of the problem. sallie mae spent $6.8 million in direct lobbying.in lobby be to make sure their image stays alive. nobody is lobbying on behalf of the student or behalf of the middle class. to make sure student loans stay in place. we need to make them open to the mark and put the american dream on the walls, on the whims of wall street speculation. speaklation, gave it to wall street. speculated. saw what happened there. and the distinction here between, you know, the mortgage crisis and student loan crisis because of that, students are taking on mountains of debt. they cannot discharge it. they can't discharge it. suzie orman says student loan debt is the worst because you can't get rid of it. what do you have? defaulting on student loan debt and the banks maining making money. if irin forebearance some companies will charge you up to $8 a day to be in forebearance because you don't have a job. you are racking up interest. also racking up an $8 a day fee. students and the american dream over the coals. if there is anybody out here who wants to say

the way of student debt reform john boehner for example his daughter is actually on the board of sallie mae which is the biggest private lender of student loans in the u.s. . ok well if they don't reach a deal what could we see happen. i mean if they don't get all smelly most students will be powerless because in this country you're told that getting an education is the best possible thing you can do for yourself i mean granted there are so few jobs out there for those of us who have finished b a's and mays look at people who haven't even gotten past the high school level you know low income students feel that they have no other choice but to you know either go to college and make something themselves or join the armed forces and wishing repayment for the armed forces has been cut dramatically as well so you know there are so few options out there not everyone is able to win the sort of scholarships that go to a plus students you know the average students something speak given a fighting chance to be able to go to school make something of him or herself and get out and have their repayment

that's the kind of solution to the student debt crisis you have over there well in america they have sallie mae which is effectively the g.-man are the fannie mae freddie mac. of the student loan market and they're bankrupt as well they're seeking a massive bail out everything goes back out of the central bank's balance sheet whether it's the bank of england's balance sheet went from eight hundred billion pound losses to over three trillion under mervyn king the federal reserve bank in the united states is interrogate now something upwards of five trillion dollars worth of new debt in the last i think what twenty five twenty four months or so so this all comes back to the same kind of accounting fraud that we're see endemic throughout the world now. what's the current default rate on the forty billion pounds of student loans and what's the state of just what's the default rate because that's the one way that will judge a loan book well this is why the different loans you can actually default on them because their income contingent you pain it's like a tax you pay nine thousand over an earnings

so i called sally mae the other day, actually. right now my interest rate is 4.75. i've been paying interest since i graduated. what ended up happening is they wanted to raise my rate, my payment per month from $500 to over $900. i called them. i said i really can't do this at $900. and i tried to negotiate with them. they said i'll give you, you know, $600 or $650 a month. i can't do the $900. and they went through the supervisor and said, you know, we don't have any other programs to accommodate that. you'll just have to default. so here i am, doing what i said i would do is pay my loans. in the economy, there's no overtime now. the company i'm working for doesn't have overtime. that was my plan. in nursing, you can make a lot of money by doing what you love, but with the economy and the changes in the health care system, there's no overtime. host: apologies. i have to take some other calls before we finish up. we appreciate the perspective. pennsylvania, independent line. hello, brian. brian, are you there? caller: yes, i am. host: go ahead. caller: i think i hav

we're going to talk about that for a guy who has worked for fannie mae, sallie mae, citi, security pacificrite sources and a great trader, bob lavin. be here in ten minutes. [ male announcer ] at his current pace, bob will retire when he's 153, which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on his portfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade. >>> gold is below $1,300 and the material sector is down sharply. have a look at the figures here live from the markets. you can see it is rough for consumer staples, telecon, health care, discretionary. let's get to josh lipton. >> we are watching the materials sector closely. one of the worst in the s&p and within the materials, the miners really getting hit hard. gold, the yellow metal, hitting the lowest since september 2010. down some 30% from its recent highs in october. simon, back to you. >> thank you very m