Last Week Tonight With John Oliver (2014) s11e05 Episode Script
Student Loans
Welcome to "Last Week Tonight"!
I'm John Oliver.
Thank you so much for joining us.
It has been a busy week.
Haiti's prime minister agreed to resign
amid deepening unrest,
Joe Biden and Chuck Schumer
soft launched a breakup
with Benjamin Netanyahu,
a certain someone's Adobe free trial
expired in a pretty public manner.
But we're gonna begin in Congress,
where the House passed a bill
that could eventually ban TikTok,
the wildly popular app
some of you are using to watch this
very content in three minute chunks.
And for those who do choose
I'm never doing that again.
But the House bill
would effectively ban TikTok
unless it breaks ties with its
Chinese parent company,
something Nancy Pelosi
summarized like this.
This is not an attempt
to ban TikTok,
it's an attempt
to make TikTok better.
Tic-tac-toe, a winner.
A winner.
is it a rule that to be in Congress
you have to be one of the weirdest
motherfuckers to ever live?
I would ask how that happened.
She went to her speechwriter and said,
"I have the line for the Tic Tac vote".
- "Did you just say Tic Tac?"
- "You're gonna love it."
- "Again, did you say Tic Tac?"
- "It's a winner. It's a winner."
Then marched to the floor and alienated
every American under the age of 35.
Across the aisle in the House,
Republicans have been in disarray.
Colorado's Ken Buck became
the latest congressman to resign,
and he doesn't seem
that sad to be going,
given how he summed up
the mood of the place.
It is the worst year of the 9 years and
3 months that I've been in Congress.
Having talked to former members,
it's the worst year in 40, 50 years
to be in Congress.
That is not great!
For one thing, the last 40 to 50 years
included 9/11 and January 6th,
two moments in American history so
bad, they ruined their dates entirely.
I do get the desire to leave,
Congress is pathetic right now,
passing 27 bills into law last year,
making this session
the least productive in decades.
And Buck has been there
a long time.
2015 doesn't seem like that long, but
you know what happened back then?
Left Shark. Yeah.
Do you remember a time
when we could collectively celebrate
the joyful stupidity of something
like Left Shark, as a community?
Could you even imagine
seeing Left Shark today and saying
"I love this thing",
without immediately worrying that
you'd see headlines the next day like,
"The Insidious Nature
of Left Shark Privilege"
or "Left Shark's Overall Deal at Amazon
in Jeopardy After Anti-Vax Claims"
or "Leaked Flight Logs Reveal
Left Shark Took 75 Trips
on the Lolita Express?"
We didn't worry
about any of that stuff back then,
we just looked
at Left Shark and said "Yes".
That is how long Ken Buck has been
having a bad time in Congress.
And his departure is symbolic of
a larger discontent within his party,
though luckily for House Republicans,
they had a retreat this week,
a chance to mend fences
and come together.
But there was a hitch.
Fewer than 100 members
are even attending the event.
That's less
than half of the conference.
One lawmaker telling Axios, quote:
"I'd rather sit down with
Hannibal Lecter and eat my own liver".
There is nothing wrong
with not wanting to hang out
recreationally with your coworkers,
but you must really want
to avoid an event
if your answer expands
beyond "No".
At a certain point,
more details become hurtful,
that is why every wedding
RSVP doesn't read,
"Will attend", "Will not attend",
"Will not attend because I'd rather be
the middle part of a human centipede".
And the Hannibal Lecter excuse
wasn't the only elaborate no.
Carlos Gimenez told a reporter
that he wouldn't be coming
because "he'd bought the material
to clean his boat this week."
Which makes sense.
We all know how important it is to use
boat cleaner before it expires.
But lawmakers didn't skip the event
because their coworkers are,
broadly speaking, a bad hang.
There was also grumbling
that, instead of the usual
retreat destination of Florida,
Mike Johnson picked
the Greenbrier in West Virginia,
whose recent reviews online
are, at best, mixed,
with travelers complaining
that "Greenbrier is sad",
"The bed and pillows were
among the worst we've experienced",
and one simply labeled
"Don't do it!"
There is also this photo
on their website right now,
which looks like the last thing you see
before being brutally murdered
at an abandoned Cadbury factory.
That looks like the Wes Anderson
remake of "The Shining".
Although, I will say, there is one
amazing feature under that resort
that makes it a perfect setting
for a party in crisis.
During the Cold War,
in case of a nuclear disaster,
this is where our House and Senate
would have relocated,
to continue doing their job.
How heavy is this door?
This door is actually 18 tons.
This was a dormitory
with 60 to 65 beds.
And there would also be riot gear.
The riot gear is to protect
the people in here from each other?
From each other.
Yeah, and it says a lot
about your opinion of the people
in charge of the government,
the ones those planners
were expressly trying to save,
that they thought
that if left in an enclosed space
for an indeterminate amount of time,
they'd inevitably murder each other.
It is pretty clear House Republicans
need to be reminded
that there are bigger things
than themselves,
and that there is
a lot at stake here.
And maybe what Mike Johnson
needs is to find a way
to get the entire party
to that resort,
head down to the bunker,
and step through that 18-ton door
so they can marvel
at the weight of their role
in restoring order
to a world gone mad.
And then, while they do that,
the rest of us can close
that door behind them and run.
I don't want to say
it's a perfect plan,
but I will say,
tic-tac-toe, it's a winner.
It's a winner. And now, this!
And Now:
Coming Up on "Inside Edition".
Next, the mom wrongly
accused of child trafficking.
Is this your child?
That's her kid.
Pickleball scandal.
These women say they were
swindled by the pickleball king.
Shame on you, Rodney.
Plus, orca versus shark.
And, what happened
to Nicole Kidman's knee?
Plus, gimme back my dog!
And, opening night mishap
at the Spongebob musical.
And, you won't believe what's trapped
inside this shipping container.
It's scratching, dude!
Plus, warthogs,
how dangerous are they?
And, claw machine rescue.
And, dude, where's your pants?
Then, college students
who want to look hot.
Plus, put a ring on it, if you dare.
And, watch out, buddy!
Little golden girl sensation.
why everyone's saying she looks
like one of the "Golden Girls".
Moving on. Our main story tonight
concerns student loans.
The biggest thing
you leave college with,
besides a diploma
and a drinking problem.
Student debt is such a massive issue
in this country that a few years ago,
Burger King had a program
dubbed "Whopper Loans",
where lucky people could get up
to $500 of their loans repaid,
which they promoted
with video of their mascot
incinerating loans
with a flamethrower.
And just the year before,
KFC did this.
If you name your baby Harland,
you could win
$11,000 in college tuition.
All part of a contest by KFC
to honor its founder,
Colonel Harland Sanders.
The chain will give the prize
to the first baby born on September 9th
named Harland.
September 9th was the colonel's
birthday and the $11,000
is a nod to his chicken's
11 herbs and spices.
First, that laugh is delightful.
But also, someone actually did that!
They named their baby Harland
for $11,000 in college tuition money.
Which is dark, but to be fair,
Harland's not the worst baby name.
The worst name would be Derek.
Think about it!
you saw a baby with cheeks like clouds
and an innocence unparalleled
and you thought "That's Derek, my
little second-string lacrosse player.
I can't wait to hold that junior sales
associate in my arms."
But as wild as those offers are,
you can see the appeal.
Currently, over 43 million Americans
have student loans.
That's about 13%
of the U.S. population,
for a total outstanding debt
of $1.7 trillion.
That's higher
than the GDP of Australia!
One of the countries you know.
Sometimes to illustrate a point,
I have to use a country like Estonia,
and you have to infer from my tone
whether that means
a number is big or not.
But now, because I've successfully
traumatized you over the years,
you're probably wondering,
is that really Estonia?
I don't know, you tell me.
Maybe you should've paid
more attention
at that school that you paid
so much fuckin' money for.
For many struggling
to pay their student loans,
the debt can feel overwhelming.
I started with 80,000.
I have been paying for 10 years.
The grand total
is I have paid $120,000
and I still owe 76.
How the fuck is this possible?!
That is the appropriate response!
No one should be working
for 10 years
only to end up worse off
than when they started.
Physically worse, sure.
That's a given.
It's completely understandable.
But not financially.
Now, you might remember, Joe Biden
campaigned on tackling student debt.
But his most ambitious plan,
to wipe out over $400 billion of it,
was struck down
by the Supreme Court last summer.
Another banger decision
from the gavel gang,
who are really playing the hits
these days.
Honestly, you guys should probably
take this show on the road,
and if you do, I've actually
got the perfect tour bus.
For another 48 hours,
it can be yours.
One of yours. If the rest of you
get invited is kind of up to him.
And for many on the right,
the court's decision was a good thing,
because all along, the very idea
of student loans getting forgiven
had made them furious.
He may pull the trigger tomorrow
on even more
student loan forgiveness
for pointless,
useless baloney liberal arts degrees
like the cultural significance
of soap operas.
Why stop at student loans?
Why not pay off people's car loans,
their home loans,
their loans to get a tattoo?
Why should I have to pay
for my neighbor's dumb daughter
who went to, I don't know,
grad school for anthropology,
who just backed her car into my
car and didn't leave a note?
I'm not paying for that!
What a bunch
of weird made-up bullshit
followed by one thing
that definitely did happen.
I'd never considered how
that cufflink of a man has neighbors.
He lives in a community,
among people who have to see him
on the streets and at the store.
And yet, he thinks someone hit
his car by mistake?
And that there's only one suspect?
That's absurd!
The whole town probably
takes turns driving into his car!
Also, for the record,
Jesse Watters went to a private
liberal arts college in Connecticut.
Which really
shouldn't be surprising.
That is the most Connecticut bitch
face I've ever seen.
Season five Rory Gilmore would
have wrecked her whole life for him.
But for all the scorn heaped
on people who took on student debt,
it's worth noting
that this number only got so big
because of a lot of shortsighted
policy choices over the years.
In fact, one of the original architects
of the federal loan program in the '60s
was asked a few years ago how
she thought her proposal turned out.
And she said, quote,
"We unleashed a monster".
So, given that, tonight,
let's look at that monster,
how it got so big,
and what we can do about it.
And let's start
with how we got here.
Because there's two key issues
that got us into this mess.
The first is the loan program itself.
Federal money
for higher education
started with the introduction
of the GI Bill.
For years after it,
lawmakers argued unsuccessfully
for more federal funding
for education.
Then, Sputnik happened,
and suddenly,
everyone from Eisenhower on down
decided that scientific education
was key to keeping up with Russia.
Eisenhower signed
the National Defense Education Act,
which created the first loan
program for students
who wanted to study math,
science, and engineering.
And over the years, one president
after another expanded the program.
LBJ opened up lending to more people,
regardless of their area of study,
Nixon launched Pell Grants
and created Sallie Mae.
Clinton started the process of shifting
away from banks issuing student loans,
to having them come
directly from the government,
all while pushing repayment ideas
like this.
The Democrats
ought to be for a program
that gives every American person
the chance to go to college
and help for everybody
who needs it,
and they should pay the money back
in one of two ways:
either as a small percentage of their
income over a long period of time,
or by giving three or four years
of their lives back to their country
through national service as teachers,
or policemen,
or family service workers!
Sounds pretty good.
In exchange for an education,
graduates could give back by doing
two of the hardest jobs I can imagine,
and one that's mostly staring
at your phone in the New York subway.
Under Clinton, and later Bush,
we passed versions of that proposal,
pegging student loan repayment
to income or national service.
And some of these tweaks
genuinely had the goal
of making access
to education easier.
But the only thing
they definitely made easier
was ensuring
that anyone going to college
could now access
an absolutely massive line of credit.
And theoretically,
that would have been manageable,
so long as the price of college
didn't get out of hand.
But that brings us
to this second issue.
Because up until the pandemic,
which brought tuition freezes,
the price of an education
crept up steadily over the years.
It's now at the point
where the average net cost
of attendance for in-state students
at public schools,
that is after subtracting
financial aid and grants,
and adding in costs for things
like housing, food, and books,
is around $20,000 per year.
And while a lot of factors
contributed to that rise,
one key one was a dynamic
that accelerated
after the 2008 financial crisis,
when states began slashing funding
for public colleges and universities,
where the vast majority
of U.S. students go.
Those declines in funding were
followed by large increases in tuition
and fees to cover the gap.
Here is the former head of LSU,
in 2016,
explaining how,
in just a few short years,
the ratio of what the government pays
to what students pay had shifted there.
I'd say, in '08, we were 70-30,
70% state, 30% student.
We're 80-20 right now.
80% student, 20% state.
We're quietly privatizing public higher
education throughout the country.
The children in elementary school
are not gonna have
a public affordable option by the
time they get out of high school.
It's true!
And you can frankly add that
to the list of things
that elementary school children
aren't gonna have
by the time they're 18.
The list is now: affordable public
college, summers below 100 degrees,
and their grandparents, probably.
Sorry, kids! Olds die!
And when that reporter asked
the then-governor of Louisiana
to justify those cuts, his response
was less than inspiring.
I have a constitutional obligation
to deliver a balanced budget
and the cuts have to come
from somewhere.
So, the cuts are coming
at the expense of higher education
and also at the expense of students
in order to keep
those universities afloat.
Students have access to money.
So, do lawmakers think, well,
we won't put money toward this
because we know
that students can take out debt
and pay for their education
that way?
Obviously,
that is happening to some degree,
not just in Louisiana
but around the country,
and I find it very troubling.
"Yeah, we're robbing our children
to pay for our budget."
On one hand,
I guess he's being honest there,
but that is one of the worst things
I've ever seen come out of Louisiana.
With the best, of course,
being Monsieur Jacques,
the statue of a frog in a top hat
from the city of Rayne.
Now, does it look like
the placard in front of him
is blocking
his enormous frog dick?
Yes, it does. Is there a photo
where it doesn't look like that?
No, my friends, there is not.
So, public universities
were struggling for funding.
And many responded
by ramping up spending.
Which might seem counterintuitive,
until you realize that you can charge
tuition almost three times higher
to out-of-state or international
students than instate ones.
So, colleges now compete
to lure those students in,
with expensive amenities
from state-of-the-art student centers
to rock climbing walls.
In fact, one of the most potent
symbols of those spending wars
is actually at LSU itself.
There it is,
lifeguards and everything.
Students at Louisiana State University
can now enjoy
a 500-foot lazy river
that spells out "LSU".
Hey, lifeguard!
- Are you a student here, too?
- Yes, sir.
So, you're paying for this?
You're paying for the lazy river.
Yes, I am. Yes, I pay for this.
It's in my fees.
Okay, first, stop yelling
at that student through a fence.
He's busy. At work. Being paid to watch
the river he paradoxically funds.
Second, not to river shame,
but that has too many curves.
The whole point of a lazy river
is to get day drunk on Nattys,
pass out to an MGMT album,
and vibe.
You can't do that
if every five seconds
you have to navigate the twists
and turns of the letter S.
But whether out of necessity
or greed,
universities basically started
turning their campuses into resorts
to justify taking
more money from students.
Even as tuition climbed,
students didn't stop applying.
They just kept borrowing
as much as they could.
So, the mere existence
of the student loan industry
has ended up
contributing to a vicious cycle
of rising tuition
and higher debt loads.
All of which
has made it very easy
to wind up taking
on debilitating amounts of debt,
often at an age where you barely
understand what you're getting into.
It was just explained to us
as everybody has student loans
and this is just something you do
to get ahead in life.
To have a drink of alcohol,
you have to be 21.
To take out $100,000 worth of debt,
you can be 18.
You can do that.
And I definitely did not understand
what I was signing up for.
Right. That's a huge burden
to take on at 18.
And that's already a difficult age,
you can't legally drink,
you can't stop fighting with your mom,
who's being a total bitch,
and Leonardo DiCaprio
keeps skulking around your school.
Why add the biggest financial decision
of your life to that list?
One borrower said she barely
recognized her childlike handwriting
on the forms that committed her
to decades of debt.
And yet, for many, taking it on can
seem like the only rational choice.
Because so many careers are offlimits
to anyone who hasn't been to college.
Even though two-thirds
of administrative assistants
don't have bachelor's degrees,
three quarters of the new job postings
for administrative assistants
say you have to have a bachelor's
degree to be considered for that job.
So, two-thirds of the people
who currently do that job
can't apply for three-quarters
of the new jobs in the field.
Exactly!
A lack of a college degree is
a barrier to entry for a lot of jobs.
And barriers to entry
make sense for some things
like practicing medicine
or gorilla enclosures.
But requiring a degree for a job
that can be done without one
makes no sense at all.
Once you've taken these loans on,
even those who can afford
the minimum payment
can end up
treading water for years.
Here's that woman you just saw
breaking down
where her monthly payments go.
So, my total due for this month,
$707.74.
What will be applied to the principal?
$64.54.
So, the principal
is the total amount of loan,
like, actual money
that I actually took out.
What will be going to the interest?
$643.20.
So, my principal isn't going down.
My debt isn't going down.
I'm literally paying the interest.
That is ridiculous.
That $650 could clearly be
much better spent
on the principal on her loan,
or even to buy two Cameos
from Rudy Giuliani every month.
I would prove that to you
by buying one,
but I do not want to give that man
any money.
So, we got one from Snooki instead,
who charges around the same amount.
Hey, Brittney! What's up, mama?
It's your girl, Snooki!
I cannot believe this video costs half
as much as your student loan interest.
That's fucked up!
Yeah, it is! Thank you, Snooki.
Thank you very much.
And as those debts pile up,
it is no wonder that,
for many with student loans,
it can feel almost impossible
to plan for a future.
One of the things that scares me
is becoming a parent.
I just got married last year
and my wife is on me, like,
"Hey, you know, I'm ready.
Are you ready?"
And so, you know,
I would love to be a parent but
then I look at the cost of childcare
and I look at my student loan balance
and it's like,
then I'm still gonna be balancing,
do I make my student loan payment
or do I pay child care?
And I don't want
to default on my student loans,
but at the same time,
if I'm gonna become a parent,
I want to make sure that my child
has the best life possible
and I just don't see
how that's possible
with having a student loan debt
hanging over my head.
Yeah, student loans shouldn't
determine whether you have kids.
It'd be crazy if something
the government did
influenced your decision
to have a child or not.
Right? That would be crazy!
It would be absolutely crazy.
And let's address
who gets hit hardest here.
Because when many imagine
the typical borrower,
they are picturing the caricature
painted on Fox News,
or in ads like this one,
attacking Biden's debt relief plan.
Want to be a struggling artist?
College is on me!
My kids don't need fancy things
like school supplies or new shoes.
I work for you, theater major.
This shift is for you, business major,
go buy yourself that new car.
Enjoy your free ride,
college is on me.
Tell Congress,
stop Biden's bailout for rich kids.
They're so right, stop paying
for rich kids to study theater.
What are they gonna do
with that degree anyway?
Star in a hack political ad making fun
of anyone who studies theater?
Go get a real job
where you touch a wrench!
But about that
"bailout for rich kids" idea,
it gets tossed around a lot
when it comes to debt forgiveness.
Which is a little weird because rich
kids tend not to have student debt,
because their parents
tend to pay for their college,
just like they tend
to pay for lawyers
to make that thing with the car
and the cyclist go away.
People with the highest loan balances
are often current on their payments,
because they may've gotten
advanced degrees
that allowed them to earn more.
Conversely,
those most burdened by debt
often have relatively small
amounts of loans.
That guy who was talking
about putting off having kids?
He's not in debt
because he studied theater.
He owes $30,000 from going to a state
university to study accounting.
He took the path people like this guy
love to cream their chinos over,
and it still fucked him over.
In fact, as of 2022, "most student
loan borrowers with outstanding debt
owed less than $25,000".
And having a smaller debt
doesn't mean it's easier to pay off,
in fact,
borrowers with the least debt
often had slightly
more difficulty with repayments.
And that can be
for multiple reasons,
including that they may've had
to leave school before finishing,
meaning they have all the debt,
but no degree to show for it.
And it gets even worse,
because increasingly,
it's not just young people
taking on student loans.
That is thanks to yet another
federal program called Parent PLUS,
which allows parents to take out a
student loan on their child's behalf.
But these loans are even riskier,
they have "effectively
no income requirements,
and no limit on borrowing."
And that means there are
increasing numbers of retirees
saddled with student debt
on behalf of their kids,
like this 80-year-old man.
And this is my son,
who graduated in 2008
from Bridgewater College
with a degree in biology.
I didn't want him to be stuck
with having the debt
that a lot of kids
have when they get out of college.
So, I assumed that loan.
The Parent PLUS loan that I took out
was through
the Department of Education.
I think I started in 2004.
I'm still paying it.
And according to Navient,
I'll be done in 2040.
You know what I kind
of like about that?
The slight laugh in his voice
at the end there.
That is the chuckle of a man
who knows he'll be dead
long before that loan
gets paid back.
That is a man laughing
in the face of God and government.
And death might be the only option
to get out from under these loans.
Because, as we've discussed
before on this show,
student loans are extremely difficult
to discharge through bankruptcy.
They're actually something
of an outlier in that regard,
as this professor explains.
If I were to go and lose all my money
at a gambling casino,
I can declare bankruptcy.
If I were to be a criminal
and do some horrible thing,
I can declare bankruptcy.
Students are not allowed
to declare bankruptcy.
That is true. And while I appreciate
the hypothetical there,
it is hard to imagine this guy blowing
his life savings at a craps table.
I'm just saying, the very fact
that he called it a "gambling casino"
proves he has never been
inside one.
This entire system seems practically
set up to drown people in debt.
But there is one more player
that we should mention here,
and that is student loan servicers.
You might know them
by names like these.
If you know who these companies are,
you probably fucking hate them!
Servicers like these manage loans
on the government's behalf,
and in theory, they're supposed
to help you navigate the system.
But in practice, they often manage
to make things much worse.
A report found some companies have
billed people for the wrong amount,
given them bad information,
and subjected them to incredibly
long hold times on the phone,
with one borrower waiting 565
minutes to speak to a representative,
and that incompetence
is a real problem.
The government does have programs
to ease the burden of student debt.
Remember the ones that you saw
Bill Clinton describe earlier,
where your debt can be reduced
based on income or public service?
Those actually do exist.
But the government designed them
in a very complicated way,
and their implementation
is in the hands of these companies.
Take this woman.
She was enrolled in a program where,
after a decade of public service,
her loans would be forgiven.
She spent her decade serving
in the military, and nine years in,
having auto-paid on time every month,
she assumed she was nearly done.
But when she called her servicer,
FedLoan,
they told her that she'd only been
credited with one year of payments,
so still had nine left.
And when she asked why,
their response was maddening.
The woman looked through
my account and she says
"You may have an issue
that we know is an issue
where the auto-debit
takes the payment
but one penny short of what
is actually due, so it doesn't count."
I submitted my case for a review,
and it sat in review for three years.
And in the interim, I was paying
because you're like, okay, well,
they're reviewing it.
it was still under review.
Hold on, "We may've
undercharged you by one penny,
so the payment doesn't count?!"
In no other transaction
would that be acceptable!
If you buy a shirt that's 9.99
and the store only charges you 9.98,
the cashier can either let it go, or say
"You actually still owe us one penny".
But at no point
would they be allowed to say,
"Sorry, your payment doesn't count,
give us $10 again".
And she's not alone.
A GAO report found
that that loan-forgiveness program
had a denial rate of 99%.
A similar thing happened
with income-driven repayment plans,
which provided that, if your income
was below a certain level,
and you made 20 to 25
years' worth of payments,
your loan
would eventually be forgiven.
Which sounds good.
But, again, the programs' mechanics
were very complicated,
and servicers fucked things up.
Government reviews found
that some steered borrowers
into something
called forbearance instead,
which basically hits pause
on your loan,
but allows interest
to keep accumulating.
That is exactly what this woman
says happened to her.
For months now,
Julie Alicea has been desperately
trying to take control
of her mounting student loan debt.
It's now in the tens of thousands.
I'm trying to pay!
But she says her loan servicer,
Navient, is not helping.
She's been trying to apply
for an income-based payment plan
but instead the company steers
her towards a costly forbearance
and won't send the paperwork
she needs.
I requested income
repayment program assistance
and I'm still waiting
since like early summer last year.
That is absurd! She's trying
to make this situation better,
and they're not helping.
She's taking it so seriously,
she's wearing a headset on the news!
Which I presume is 'cause she's
having to be on hold with Navient
every waking moment
of her fucking life!
But even if you manage
to get enrolled in a program,
and jump through
all the hoops for two decades,
your servicer
still might screw it up.
An investigation a few years ago
found some servicers
weren't clearly tracking borrowers'
payments toward the program
and had no idea when borrowers
qualified for forgiveness.
Which may help explain
why, as of 2021,
despite the fact
that two million borrowers
have been enrolled in income-based
repayment plans for over 20 years,
only 32 had successfully
canceled their loans.
Not 32%, 32 people!
This program has only worked for a
single season of Bachelor contestants.
And honestly, chalking it up
to companies' incompetence
might be too generous here.
A whistleblower who worked
in customer service at Navient
has said that one major
metric employees
were graded on wasn't how helpful
they could be to customers,
but how fast they could get them
off the phone.
Part of our training was keeping
your calls to seven minutes.
If I don't keep my call
to seven minutes,
I have a lower status.
I'm considered
not having performed as well.
A few of my coworkers said
that there was just no way
to answer all of those questions
in a way that was satisfactory
and maintain the numbers
that we were maintaining.
And so, they would be on their call
and then they would
just press a button and go "Oops!"
That is not good.
And I should say,
Navient denies
putting time limits on calls,
and also denies steering customers
into forbearance.
They have a statement here that
I dropped it.
Turns out you're right, Navient.
It's so easy to do.
The good news is Navient's contract
with the government has since expired.
Unfortunately, many of their accounts
were transferred to Mohela,
which doesn't seem
to be much better.
It was recently found to have failed
to send billing statements on time
to two and a half million borrowers
and over 800,000 were delinquent
on their loans as a result.
And when you take everything
you've seen tonight together,
it is really hard to feel
like the system isn't rigged.
We've been told,
working class people,
that, as long as you get an education,
then you will have job prospects.
You'll be able
to take care of your family.
You'll be able to have a future.
I really used to blame myself a lot,
and I used to feel a lot of shame.
And then I started to look
at the policies.
I'm like, is it personal responsibility
or is it really bad policy?
And I realized it's bad policy,
straight up.
She's right.
We've set up a system
where we've created a barrier
to entry for many jobs
that can only be passed by taking on
some of the most debilitating loans,
with the least protections,
administered by some of the shittiest
companies on Earth.
And all of this is particularly cute
for Black borrowers,
who are more likely
to take out student loans
and carry the largest average
loan debt of all demographics.
So, what do we do?
Personally, I would argue
that Congress needs to pass
massive debt forgiveness.
But I know that is a hard sell
in that building,
given that some of its members have sat
in hearings on the student debt crisis
and said shit like this.
I'm a small business owner
back in Texas,
and in my world, if you borrow
the money, you pay the money back.
Pure and simple.
That's an interesting point
from a man whose eyebrows seem
surprised to be on his face.
But on one level,
I do get that argument.
It's just, it's a little hard
to take coming from him
as, at the start of the pandemic,
his small business
received a $1.4 million PPP loan.
And guess what he didn't then do?
Pay it back.
He also happens to be one of the
wealthiest members of Congress.
So, I think we may've just found
an actual bailout for the rich here.
Someone should tell that man who
definitely knows how a car works.
He's going to be so mad!
And that is the thing here,
for all the populist speechifying
that essentially boils down to
"How dare you
spend money on something
that benefits someone who is not me?"
The government spends money
all the time, on all sorts of things,
to benefit select individuals,
because we think
there's a net societal benefit.
From forgiving loans
to small businesses,
to subsidizing corn farmers,
to giving homeowners massive tax
breaks, to building stadiums.
I don't love spending money
on all those things!
But if you do, it feels pretty weird
to draw a hard line at student debt.
And while we wait for congress
to pass comprehensive debt relief,
I do have some good news.
Because while the Supreme Court
struck down
Biden's big $400 billion plan,
to his credit, he's managed to get
other meaningful solutions through,
by tweaking existing programs.
Under his administration,
we've forgiven 12 billion of debt
for borrowers with disabilities,
and, through adjustments to the Public
Service Loan Forgiveness program,
another $56 billion
for nearly 800,000 borrowers.
That is significant
for those benefiting from it.
Everything says "Paid in full".
The relief and celebration
came in a flurry.
I've been paying
on student loans for 38 years.
Zero balance.
zero in my checking account,
not my student loans or a credit
card or anything like that.
So, it's shocking.
That is great!
It's the sort of thing that calls
for a message of congratulations.
And luckily, I happen to know
just the person to deliver it.
Hey, Sarah! I'm so glad
your student debt is all gone!
Congratulations, mama!
Thank you, again, Snooki.
If you personally have
student debt,
this administration is currently
rolling out the SAVE plan,
a retooled version
of income-driven repayment
which does look promising.
It lowers eligibility requirements
and ensures that for anyone
who borrowed less than $12,000,
their debts would be wiped clean
after 10 years of payments.
You can go to this website
to see whether you're eligible
and how much it might save you.
And I'm not saying it's perfect.
It'll have to be administered properly,
and remember,
these assholes are still involved.
But in just its first few months,
the SAVE plan has relieved
a total of $1.2 billion
for 150,000 borrowers.
If you take everything Biden's
administration has done together,
he's managed to relieve
$138 billion in student loans
for 3.9 million people
in just three years.
That is more
than any president in history.
I know we are talking
about Band-Aid solutions here.
Even if we got rid of all the
problems with the servicers,
that won't address the giant
pile of debt that people owe.
And even if we got rid of that,
that won't fix the central problem
that the cost of college
in this country is absurd.
There are proposals to deal with that,
each with pros and cons,
from putting colleges themselves
on the hook
for a portion of the debt
when students default on their loans,
to making college tuition free.
And I'm sure that we will discuss them
at another time.
We need to tackle the cost of college
and for everyone's good.
And I'm not saying college
is the right choice for everyone,
but it should be a choice.
It can unlock a lot of opportunities,
and be a net benefit to all of us.
It should be affordable for everyone,
regardless of what you study,
whether you're a medical student,
a business student,
or a certain
anthropology student,
heroically ramming
into your dipshit neighbor's car.
A grateful nation thanks you.
And now, this!
And Now:
Coming Up on "Inside Edition",
Just Taylor Swift Stories.
Holy war.
Trump's disciples declare
a holy war on Taylor Swift.
Plus, praise for Taylor Swift's
eagle-eyed bodyguard.
And, Taylor Swift, 10 minutes late!
And, here she is.
We're gonna show this to Taylor.
The little girl swept off her feet
to meet Taylor Swift,
by her boyfriend's shirtless brother.
Then, new video.
Partying in the club with mom and dad?
Plus, the Taylor Swift challenge.
And wobbly Taylor.
She just lost her heel!
And, mystery over who
really wrote the best-seller book
they've just turned
into a major movie.
Who is Elly Conway?
Is she really Taylor Swift?
And does this cat in a bubble
hold the key to the mystery?
And, Taylor Swift amnesia.
The bizarre phenomenon
plaguing Swifty nation.
They can't remember
that they've just seen the show.
That's our show. Back March 31st.
We're off next week. Good night!
I'm John Oliver.
Thank you so much for joining us.
It has been a busy week.
Haiti's prime minister agreed to resign
amid deepening unrest,
Joe Biden and Chuck Schumer
soft launched a breakup
with Benjamin Netanyahu,
a certain someone's Adobe free trial
expired in a pretty public manner.
But we're gonna begin in Congress,
where the House passed a bill
that could eventually ban TikTok,
the wildly popular app
some of you are using to watch this
very content in three minute chunks.
And for those who do choose
I'm never doing that again.
But the House bill
would effectively ban TikTok
unless it breaks ties with its
Chinese parent company,
something Nancy Pelosi
summarized like this.
This is not an attempt
to ban TikTok,
it's an attempt
to make TikTok better.
Tic-tac-toe, a winner.
A winner.
is it a rule that to be in Congress
you have to be one of the weirdest
motherfuckers to ever live?
I would ask how that happened.
She went to her speechwriter and said,
"I have the line for the Tic Tac vote".
- "Did you just say Tic Tac?"
- "You're gonna love it."
- "Again, did you say Tic Tac?"
- "It's a winner. It's a winner."
Then marched to the floor and alienated
every American under the age of 35.
Across the aisle in the House,
Republicans have been in disarray.
Colorado's Ken Buck became
the latest congressman to resign,
and he doesn't seem
that sad to be going,
given how he summed up
the mood of the place.
It is the worst year of the 9 years and
3 months that I've been in Congress.
Having talked to former members,
it's the worst year in 40, 50 years
to be in Congress.
That is not great!
For one thing, the last 40 to 50 years
included 9/11 and January 6th,
two moments in American history so
bad, they ruined their dates entirely.
I do get the desire to leave,
Congress is pathetic right now,
passing 27 bills into law last year,
making this session
the least productive in decades.
And Buck has been there
a long time.
2015 doesn't seem like that long, but
you know what happened back then?
Left Shark. Yeah.
Do you remember a time
when we could collectively celebrate
the joyful stupidity of something
like Left Shark, as a community?
Could you even imagine
seeing Left Shark today and saying
"I love this thing",
without immediately worrying that
you'd see headlines the next day like,
"The Insidious Nature
of Left Shark Privilege"
or "Left Shark's Overall Deal at Amazon
in Jeopardy After Anti-Vax Claims"
or "Leaked Flight Logs Reveal
Left Shark Took 75 Trips
on the Lolita Express?"
We didn't worry
about any of that stuff back then,
we just looked
at Left Shark and said "Yes".
That is how long Ken Buck has been
having a bad time in Congress.
And his departure is symbolic of
a larger discontent within his party,
though luckily for House Republicans,
they had a retreat this week,
a chance to mend fences
and come together.
But there was a hitch.
Fewer than 100 members
are even attending the event.
That's less
than half of the conference.
One lawmaker telling Axios, quote:
"I'd rather sit down with
Hannibal Lecter and eat my own liver".
There is nothing wrong
with not wanting to hang out
recreationally with your coworkers,
but you must really want
to avoid an event
if your answer expands
beyond "No".
At a certain point,
more details become hurtful,
that is why every wedding
RSVP doesn't read,
"Will attend", "Will not attend",
"Will not attend because I'd rather be
the middle part of a human centipede".
And the Hannibal Lecter excuse
wasn't the only elaborate no.
Carlos Gimenez told a reporter
that he wouldn't be coming
because "he'd bought the material
to clean his boat this week."
Which makes sense.
We all know how important it is to use
boat cleaner before it expires.
But lawmakers didn't skip the event
because their coworkers are,
broadly speaking, a bad hang.
There was also grumbling
that, instead of the usual
retreat destination of Florida,
Mike Johnson picked
the Greenbrier in West Virginia,
whose recent reviews online
are, at best, mixed,
with travelers complaining
that "Greenbrier is sad",
"The bed and pillows were
among the worst we've experienced",
and one simply labeled
"Don't do it!"
There is also this photo
on their website right now,
which looks like the last thing you see
before being brutally murdered
at an abandoned Cadbury factory.
That looks like the Wes Anderson
remake of "The Shining".
Although, I will say, there is one
amazing feature under that resort
that makes it a perfect setting
for a party in crisis.
During the Cold War,
in case of a nuclear disaster,
this is where our House and Senate
would have relocated,
to continue doing their job.
How heavy is this door?
This door is actually 18 tons.
This was a dormitory
with 60 to 65 beds.
And there would also be riot gear.
The riot gear is to protect
the people in here from each other?
From each other.
Yeah, and it says a lot
about your opinion of the people
in charge of the government,
the ones those planners
were expressly trying to save,
that they thought
that if left in an enclosed space
for an indeterminate amount of time,
they'd inevitably murder each other.
It is pretty clear House Republicans
need to be reminded
that there are bigger things
than themselves,
and that there is
a lot at stake here.
And maybe what Mike Johnson
needs is to find a way
to get the entire party
to that resort,
head down to the bunker,
and step through that 18-ton door
so they can marvel
at the weight of their role
in restoring order
to a world gone mad.
And then, while they do that,
the rest of us can close
that door behind them and run.
I don't want to say
it's a perfect plan,
but I will say,
tic-tac-toe, it's a winner.
It's a winner. And now, this!
And Now:
Coming Up on "Inside Edition".
Next, the mom wrongly
accused of child trafficking.
Is this your child?
That's her kid.
Pickleball scandal.
These women say they were
swindled by the pickleball king.
Shame on you, Rodney.
Plus, orca versus shark.
And, what happened
to Nicole Kidman's knee?
Plus, gimme back my dog!
And, opening night mishap
at the Spongebob musical.
And, you won't believe what's trapped
inside this shipping container.
It's scratching, dude!
Plus, warthogs,
how dangerous are they?
And, claw machine rescue.
And, dude, where's your pants?
Then, college students
who want to look hot.
Plus, put a ring on it, if you dare.
And, watch out, buddy!
Little golden girl sensation.
why everyone's saying she looks
like one of the "Golden Girls".
Moving on. Our main story tonight
concerns student loans.
The biggest thing
you leave college with,
besides a diploma
and a drinking problem.
Student debt is such a massive issue
in this country that a few years ago,
Burger King had a program
dubbed "Whopper Loans",
where lucky people could get up
to $500 of their loans repaid,
which they promoted
with video of their mascot
incinerating loans
with a flamethrower.
And just the year before,
KFC did this.
If you name your baby Harland,
you could win
$11,000 in college tuition.
All part of a contest by KFC
to honor its founder,
Colonel Harland Sanders.
The chain will give the prize
to the first baby born on September 9th
named Harland.
September 9th was the colonel's
birthday and the $11,000
is a nod to his chicken's
11 herbs and spices.
First, that laugh is delightful.
But also, someone actually did that!
They named their baby Harland
for $11,000 in college tuition money.
Which is dark, but to be fair,
Harland's not the worst baby name.
The worst name would be Derek.
Think about it!
you saw a baby with cheeks like clouds
and an innocence unparalleled
and you thought "That's Derek, my
little second-string lacrosse player.
I can't wait to hold that junior sales
associate in my arms."
But as wild as those offers are,
you can see the appeal.
Currently, over 43 million Americans
have student loans.
That's about 13%
of the U.S. population,
for a total outstanding debt
of $1.7 trillion.
That's higher
than the GDP of Australia!
One of the countries you know.
Sometimes to illustrate a point,
I have to use a country like Estonia,
and you have to infer from my tone
whether that means
a number is big or not.
But now, because I've successfully
traumatized you over the years,
you're probably wondering,
is that really Estonia?
I don't know, you tell me.
Maybe you should've paid
more attention
at that school that you paid
so much fuckin' money for.
For many struggling
to pay their student loans,
the debt can feel overwhelming.
I started with 80,000.
I have been paying for 10 years.
The grand total
is I have paid $120,000
and I still owe 76.
How the fuck is this possible?!
That is the appropriate response!
No one should be working
for 10 years
only to end up worse off
than when they started.
Physically worse, sure.
That's a given.
It's completely understandable.
But not financially.
Now, you might remember, Joe Biden
campaigned on tackling student debt.
But his most ambitious plan,
to wipe out over $400 billion of it,
was struck down
by the Supreme Court last summer.
Another banger decision
from the gavel gang,
who are really playing the hits
these days.
Honestly, you guys should probably
take this show on the road,
and if you do, I've actually
got the perfect tour bus.
For another 48 hours,
it can be yours.
One of yours. If the rest of you
get invited is kind of up to him.
And for many on the right,
the court's decision was a good thing,
because all along, the very idea
of student loans getting forgiven
had made them furious.
He may pull the trigger tomorrow
on even more
student loan forgiveness
for pointless,
useless baloney liberal arts degrees
like the cultural significance
of soap operas.
Why stop at student loans?
Why not pay off people's car loans,
their home loans,
their loans to get a tattoo?
Why should I have to pay
for my neighbor's dumb daughter
who went to, I don't know,
grad school for anthropology,
who just backed her car into my
car and didn't leave a note?
I'm not paying for that!
What a bunch
of weird made-up bullshit
followed by one thing
that definitely did happen.
I'd never considered how
that cufflink of a man has neighbors.
He lives in a community,
among people who have to see him
on the streets and at the store.
And yet, he thinks someone hit
his car by mistake?
And that there's only one suspect?
That's absurd!
The whole town probably
takes turns driving into his car!
Also, for the record,
Jesse Watters went to a private
liberal arts college in Connecticut.
Which really
shouldn't be surprising.
That is the most Connecticut bitch
face I've ever seen.
Season five Rory Gilmore would
have wrecked her whole life for him.
But for all the scorn heaped
on people who took on student debt,
it's worth noting
that this number only got so big
because of a lot of shortsighted
policy choices over the years.
In fact, one of the original architects
of the federal loan program in the '60s
was asked a few years ago how
she thought her proposal turned out.
And she said, quote,
"We unleashed a monster".
So, given that, tonight,
let's look at that monster,
how it got so big,
and what we can do about it.
And let's start
with how we got here.
Because there's two key issues
that got us into this mess.
The first is the loan program itself.
Federal money
for higher education
started with the introduction
of the GI Bill.
For years after it,
lawmakers argued unsuccessfully
for more federal funding
for education.
Then, Sputnik happened,
and suddenly,
everyone from Eisenhower on down
decided that scientific education
was key to keeping up with Russia.
Eisenhower signed
the National Defense Education Act,
which created the first loan
program for students
who wanted to study math,
science, and engineering.
And over the years, one president
after another expanded the program.
LBJ opened up lending to more people,
regardless of their area of study,
Nixon launched Pell Grants
and created Sallie Mae.
Clinton started the process of shifting
away from banks issuing student loans,
to having them come
directly from the government,
all while pushing repayment ideas
like this.
The Democrats
ought to be for a program
that gives every American person
the chance to go to college
and help for everybody
who needs it,
and they should pay the money back
in one of two ways:
either as a small percentage of their
income over a long period of time,
or by giving three or four years
of their lives back to their country
through national service as teachers,
or policemen,
or family service workers!
Sounds pretty good.
In exchange for an education,
graduates could give back by doing
two of the hardest jobs I can imagine,
and one that's mostly staring
at your phone in the New York subway.
Under Clinton, and later Bush,
we passed versions of that proposal,
pegging student loan repayment
to income or national service.
And some of these tweaks
genuinely had the goal
of making access
to education easier.
But the only thing
they definitely made easier
was ensuring
that anyone going to college
could now access
an absolutely massive line of credit.
And theoretically,
that would have been manageable,
so long as the price of college
didn't get out of hand.
But that brings us
to this second issue.
Because up until the pandemic,
which brought tuition freezes,
the price of an education
crept up steadily over the years.
It's now at the point
where the average net cost
of attendance for in-state students
at public schools,
that is after subtracting
financial aid and grants,
and adding in costs for things
like housing, food, and books,
is around $20,000 per year.
And while a lot of factors
contributed to that rise,
one key one was a dynamic
that accelerated
after the 2008 financial crisis,
when states began slashing funding
for public colleges and universities,
where the vast majority
of U.S. students go.
Those declines in funding were
followed by large increases in tuition
and fees to cover the gap.
Here is the former head of LSU,
in 2016,
explaining how,
in just a few short years,
the ratio of what the government pays
to what students pay had shifted there.
I'd say, in '08, we were 70-30,
70% state, 30% student.
We're 80-20 right now.
80% student, 20% state.
We're quietly privatizing public higher
education throughout the country.
The children in elementary school
are not gonna have
a public affordable option by the
time they get out of high school.
It's true!
And you can frankly add that
to the list of things
that elementary school children
aren't gonna have
by the time they're 18.
The list is now: affordable public
college, summers below 100 degrees,
and their grandparents, probably.
Sorry, kids! Olds die!
And when that reporter asked
the then-governor of Louisiana
to justify those cuts, his response
was less than inspiring.
I have a constitutional obligation
to deliver a balanced budget
and the cuts have to come
from somewhere.
So, the cuts are coming
at the expense of higher education
and also at the expense of students
in order to keep
those universities afloat.
Students have access to money.
So, do lawmakers think, well,
we won't put money toward this
because we know
that students can take out debt
and pay for their education
that way?
Obviously,
that is happening to some degree,
not just in Louisiana
but around the country,
and I find it very troubling.
"Yeah, we're robbing our children
to pay for our budget."
On one hand,
I guess he's being honest there,
but that is one of the worst things
I've ever seen come out of Louisiana.
With the best, of course,
being Monsieur Jacques,
the statue of a frog in a top hat
from the city of Rayne.
Now, does it look like
the placard in front of him
is blocking
his enormous frog dick?
Yes, it does. Is there a photo
where it doesn't look like that?
No, my friends, there is not.
So, public universities
were struggling for funding.
And many responded
by ramping up spending.
Which might seem counterintuitive,
until you realize that you can charge
tuition almost three times higher
to out-of-state or international
students than instate ones.
So, colleges now compete
to lure those students in,
with expensive amenities
from state-of-the-art student centers
to rock climbing walls.
In fact, one of the most potent
symbols of those spending wars
is actually at LSU itself.
There it is,
lifeguards and everything.
Students at Louisiana State University
can now enjoy
a 500-foot lazy river
that spells out "LSU".
Hey, lifeguard!
- Are you a student here, too?
- Yes, sir.
So, you're paying for this?
You're paying for the lazy river.
Yes, I am. Yes, I pay for this.
It's in my fees.
Okay, first, stop yelling
at that student through a fence.
He's busy. At work. Being paid to watch
the river he paradoxically funds.
Second, not to river shame,
but that has too many curves.
The whole point of a lazy river
is to get day drunk on Nattys,
pass out to an MGMT album,
and vibe.
You can't do that
if every five seconds
you have to navigate the twists
and turns of the letter S.
But whether out of necessity
or greed,
universities basically started
turning their campuses into resorts
to justify taking
more money from students.
Even as tuition climbed,
students didn't stop applying.
They just kept borrowing
as much as they could.
So, the mere existence
of the student loan industry
has ended up
contributing to a vicious cycle
of rising tuition
and higher debt loads.
All of which
has made it very easy
to wind up taking
on debilitating amounts of debt,
often at an age where you barely
understand what you're getting into.
It was just explained to us
as everybody has student loans
and this is just something you do
to get ahead in life.
To have a drink of alcohol,
you have to be 21.
To take out $100,000 worth of debt,
you can be 18.
You can do that.
And I definitely did not understand
what I was signing up for.
Right. That's a huge burden
to take on at 18.
And that's already a difficult age,
you can't legally drink,
you can't stop fighting with your mom,
who's being a total bitch,
and Leonardo DiCaprio
keeps skulking around your school.
Why add the biggest financial decision
of your life to that list?
One borrower said she barely
recognized her childlike handwriting
on the forms that committed her
to decades of debt.
And yet, for many, taking it on can
seem like the only rational choice.
Because so many careers are offlimits
to anyone who hasn't been to college.
Even though two-thirds
of administrative assistants
don't have bachelor's degrees,
three quarters of the new job postings
for administrative assistants
say you have to have a bachelor's
degree to be considered for that job.
So, two-thirds of the people
who currently do that job
can't apply for three-quarters
of the new jobs in the field.
Exactly!
A lack of a college degree is
a barrier to entry for a lot of jobs.
And barriers to entry
make sense for some things
like practicing medicine
or gorilla enclosures.
But requiring a degree for a job
that can be done without one
makes no sense at all.
Once you've taken these loans on,
even those who can afford
the minimum payment
can end up
treading water for years.
Here's that woman you just saw
breaking down
where her monthly payments go.
So, my total due for this month,
$707.74.
What will be applied to the principal?
$64.54.
So, the principal
is the total amount of loan,
like, actual money
that I actually took out.
What will be going to the interest?
$643.20.
So, my principal isn't going down.
My debt isn't going down.
I'm literally paying the interest.
That is ridiculous.
That $650 could clearly be
much better spent
on the principal on her loan,
or even to buy two Cameos
from Rudy Giuliani every month.
I would prove that to you
by buying one,
but I do not want to give that man
any money.
So, we got one from Snooki instead,
who charges around the same amount.
Hey, Brittney! What's up, mama?
It's your girl, Snooki!
I cannot believe this video costs half
as much as your student loan interest.
That's fucked up!
Yeah, it is! Thank you, Snooki.
Thank you very much.
And as those debts pile up,
it is no wonder that,
for many with student loans,
it can feel almost impossible
to plan for a future.
One of the things that scares me
is becoming a parent.
I just got married last year
and my wife is on me, like,
"Hey, you know, I'm ready.
Are you ready?"
And so, you know,
I would love to be a parent but
then I look at the cost of childcare
and I look at my student loan balance
and it's like,
then I'm still gonna be balancing,
do I make my student loan payment
or do I pay child care?
And I don't want
to default on my student loans,
but at the same time,
if I'm gonna become a parent,
I want to make sure that my child
has the best life possible
and I just don't see
how that's possible
with having a student loan debt
hanging over my head.
Yeah, student loans shouldn't
determine whether you have kids.
It'd be crazy if something
the government did
influenced your decision
to have a child or not.
Right? That would be crazy!
It would be absolutely crazy.
And let's address
who gets hit hardest here.
Because when many imagine
the typical borrower,
they are picturing the caricature
painted on Fox News,
or in ads like this one,
attacking Biden's debt relief plan.
Want to be a struggling artist?
College is on me!
My kids don't need fancy things
like school supplies or new shoes.
I work for you, theater major.
This shift is for you, business major,
go buy yourself that new car.
Enjoy your free ride,
college is on me.
Tell Congress,
stop Biden's bailout for rich kids.
They're so right, stop paying
for rich kids to study theater.
What are they gonna do
with that degree anyway?
Star in a hack political ad making fun
of anyone who studies theater?
Go get a real job
where you touch a wrench!
But about that
"bailout for rich kids" idea,
it gets tossed around a lot
when it comes to debt forgiveness.
Which is a little weird because rich
kids tend not to have student debt,
because their parents
tend to pay for their college,
just like they tend
to pay for lawyers
to make that thing with the car
and the cyclist go away.
People with the highest loan balances
are often current on their payments,
because they may've gotten
advanced degrees
that allowed them to earn more.
Conversely,
those most burdened by debt
often have relatively small
amounts of loans.
That guy who was talking
about putting off having kids?
He's not in debt
because he studied theater.
He owes $30,000 from going to a state
university to study accounting.
He took the path people like this guy
love to cream their chinos over,
and it still fucked him over.
In fact, as of 2022, "most student
loan borrowers with outstanding debt
owed less than $25,000".
And having a smaller debt
doesn't mean it's easier to pay off,
in fact,
borrowers with the least debt
often had slightly
more difficulty with repayments.
And that can be
for multiple reasons,
including that they may've had
to leave school before finishing,
meaning they have all the debt,
but no degree to show for it.
And it gets even worse,
because increasingly,
it's not just young people
taking on student loans.
That is thanks to yet another
federal program called Parent PLUS,
which allows parents to take out a
student loan on their child's behalf.
But these loans are even riskier,
they have "effectively
no income requirements,
and no limit on borrowing."
And that means there are
increasing numbers of retirees
saddled with student debt
on behalf of their kids,
like this 80-year-old man.
And this is my son,
who graduated in 2008
from Bridgewater College
with a degree in biology.
I didn't want him to be stuck
with having the debt
that a lot of kids
have when they get out of college.
So, I assumed that loan.
The Parent PLUS loan that I took out
was through
the Department of Education.
I think I started in 2004.
I'm still paying it.
And according to Navient,
I'll be done in 2040.
You know what I kind
of like about that?
The slight laugh in his voice
at the end there.
That is the chuckle of a man
who knows he'll be dead
long before that loan
gets paid back.
That is a man laughing
in the face of God and government.
And death might be the only option
to get out from under these loans.
Because, as we've discussed
before on this show,
student loans are extremely difficult
to discharge through bankruptcy.
They're actually something
of an outlier in that regard,
as this professor explains.
If I were to go and lose all my money
at a gambling casino,
I can declare bankruptcy.
If I were to be a criminal
and do some horrible thing,
I can declare bankruptcy.
Students are not allowed
to declare bankruptcy.
That is true. And while I appreciate
the hypothetical there,
it is hard to imagine this guy blowing
his life savings at a craps table.
I'm just saying, the very fact
that he called it a "gambling casino"
proves he has never been
inside one.
This entire system seems practically
set up to drown people in debt.
But there is one more player
that we should mention here,
and that is student loan servicers.
You might know them
by names like these.
If you know who these companies are,
you probably fucking hate them!
Servicers like these manage loans
on the government's behalf,
and in theory, they're supposed
to help you navigate the system.
But in practice, they often manage
to make things much worse.
A report found some companies have
billed people for the wrong amount,
given them bad information,
and subjected them to incredibly
long hold times on the phone,
with one borrower waiting 565
minutes to speak to a representative,
and that incompetence
is a real problem.
The government does have programs
to ease the burden of student debt.
Remember the ones that you saw
Bill Clinton describe earlier,
where your debt can be reduced
based on income or public service?
Those actually do exist.
But the government designed them
in a very complicated way,
and their implementation
is in the hands of these companies.
Take this woman.
She was enrolled in a program where,
after a decade of public service,
her loans would be forgiven.
She spent her decade serving
in the military, and nine years in,
having auto-paid on time every month,
she assumed she was nearly done.
But when she called her servicer,
FedLoan,
they told her that she'd only been
credited with one year of payments,
so still had nine left.
And when she asked why,
their response was maddening.
The woman looked through
my account and she says
"You may have an issue
that we know is an issue
where the auto-debit
takes the payment
but one penny short of what
is actually due, so it doesn't count."
I submitted my case for a review,
and it sat in review for three years.
And in the interim, I was paying
because you're like, okay, well,
they're reviewing it.
it was still under review.
Hold on, "We may've
undercharged you by one penny,
so the payment doesn't count?!"
In no other transaction
would that be acceptable!
If you buy a shirt that's 9.99
and the store only charges you 9.98,
the cashier can either let it go, or say
"You actually still owe us one penny".
But at no point
would they be allowed to say,
"Sorry, your payment doesn't count,
give us $10 again".
And she's not alone.
A GAO report found
that that loan-forgiveness program
had a denial rate of 99%.
A similar thing happened
with income-driven repayment plans,
which provided that, if your income
was below a certain level,
and you made 20 to 25
years' worth of payments,
your loan
would eventually be forgiven.
Which sounds good.
But, again, the programs' mechanics
were very complicated,
and servicers fucked things up.
Government reviews found
that some steered borrowers
into something
called forbearance instead,
which basically hits pause
on your loan,
but allows interest
to keep accumulating.
That is exactly what this woman
says happened to her.
For months now,
Julie Alicea has been desperately
trying to take control
of her mounting student loan debt.
It's now in the tens of thousands.
I'm trying to pay!
But she says her loan servicer,
Navient, is not helping.
She's been trying to apply
for an income-based payment plan
but instead the company steers
her towards a costly forbearance
and won't send the paperwork
she needs.
I requested income
repayment program assistance
and I'm still waiting
since like early summer last year.
That is absurd! She's trying
to make this situation better,
and they're not helping.
She's taking it so seriously,
she's wearing a headset on the news!
Which I presume is 'cause she's
having to be on hold with Navient
every waking moment
of her fucking life!
But even if you manage
to get enrolled in a program,
and jump through
all the hoops for two decades,
your servicer
still might screw it up.
An investigation a few years ago
found some servicers
weren't clearly tracking borrowers'
payments toward the program
and had no idea when borrowers
qualified for forgiveness.
Which may help explain
why, as of 2021,
despite the fact
that two million borrowers
have been enrolled in income-based
repayment plans for over 20 years,
only 32 had successfully
canceled their loans.
Not 32%, 32 people!
This program has only worked for a
single season of Bachelor contestants.
And honestly, chalking it up
to companies' incompetence
might be too generous here.
A whistleblower who worked
in customer service at Navient
has said that one major
metric employees
were graded on wasn't how helpful
they could be to customers,
but how fast they could get them
off the phone.
Part of our training was keeping
your calls to seven minutes.
If I don't keep my call
to seven minutes,
I have a lower status.
I'm considered
not having performed as well.
A few of my coworkers said
that there was just no way
to answer all of those questions
in a way that was satisfactory
and maintain the numbers
that we were maintaining.
And so, they would be on their call
and then they would
just press a button and go "Oops!"
That is not good.
And I should say,
Navient denies
putting time limits on calls,
and also denies steering customers
into forbearance.
They have a statement here that
I dropped it.
Turns out you're right, Navient.
It's so easy to do.
The good news is Navient's contract
with the government has since expired.
Unfortunately, many of their accounts
were transferred to Mohela,
which doesn't seem
to be much better.
It was recently found to have failed
to send billing statements on time
to two and a half million borrowers
and over 800,000 were delinquent
on their loans as a result.
And when you take everything
you've seen tonight together,
it is really hard to feel
like the system isn't rigged.
We've been told,
working class people,
that, as long as you get an education,
then you will have job prospects.
You'll be able
to take care of your family.
You'll be able to have a future.
I really used to blame myself a lot,
and I used to feel a lot of shame.
And then I started to look
at the policies.
I'm like, is it personal responsibility
or is it really bad policy?
And I realized it's bad policy,
straight up.
She's right.
We've set up a system
where we've created a barrier
to entry for many jobs
that can only be passed by taking on
some of the most debilitating loans,
with the least protections,
administered by some of the shittiest
companies on Earth.
And all of this is particularly cute
for Black borrowers,
who are more likely
to take out student loans
and carry the largest average
loan debt of all demographics.
So, what do we do?
Personally, I would argue
that Congress needs to pass
massive debt forgiveness.
But I know that is a hard sell
in that building,
given that some of its members have sat
in hearings on the student debt crisis
and said shit like this.
I'm a small business owner
back in Texas,
and in my world, if you borrow
the money, you pay the money back.
Pure and simple.
That's an interesting point
from a man whose eyebrows seem
surprised to be on his face.
But on one level,
I do get that argument.
It's just, it's a little hard
to take coming from him
as, at the start of the pandemic,
his small business
received a $1.4 million PPP loan.
And guess what he didn't then do?
Pay it back.
He also happens to be one of the
wealthiest members of Congress.
So, I think we may've just found
an actual bailout for the rich here.
Someone should tell that man who
definitely knows how a car works.
He's going to be so mad!
And that is the thing here,
for all the populist speechifying
that essentially boils down to
"How dare you
spend money on something
that benefits someone who is not me?"
The government spends money
all the time, on all sorts of things,
to benefit select individuals,
because we think
there's a net societal benefit.
From forgiving loans
to small businesses,
to subsidizing corn farmers,
to giving homeowners massive tax
breaks, to building stadiums.
I don't love spending money
on all those things!
But if you do, it feels pretty weird
to draw a hard line at student debt.
And while we wait for congress
to pass comprehensive debt relief,
I do have some good news.
Because while the Supreme Court
struck down
Biden's big $400 billion plan,
to his credit, he's managed to get
other meaningful solutions through,
by tweaking existing programs.
Under his administration,
we've forgiven 12 billion of debt
for borrowers with disabilities,
and, through adjustments to the Public
Service Loan Forgiveness program,
another $56 billion
for nearly 800,000 borrowers.
That is significant
for those benefiting from it.
Everything says "Paid in full".
The relief and celebration
came in a flurry.
I've been paying
on student loans for 38 years.
Zero balance.
zero in my checking account,
not my student loans or a credit
card or anything like that.
So, it's shocking.
That is great!
It's the sort of thing that calls
for a message of congratulations.
And luckily, I happen to know
just the person to deliver it.
Hey, Sarah! I'm so glad
your student debt is all gone!
Congratulations, mama!
Thank you, again, Snooki.
If you personally have
student debt,
this administration is currently
rolling out the SAVE plan,
a retooled version
of income-driven repayment
which does look promising.
It lowers eligibility requirements
and ensures that for anyone
who borrowed less than $12,000,
their debts would be wiped clean
after 10 years of payments.
You can go to this website
to see whether you're eligible
and how much it might save you.
And I'm not saying it's perfect.
It'll have to be administered properly,
and remember,
these assholes are still involved.
But in just its first few months,
the SAVE plan has relieved
a total of $1.2 billion
for 150,000 borrowers.
If you take everything Biden's
administration has done together,
he's managed to relieve
$138 billion in student loans
for 3.9 million people
in just three years.
That is more
than any president in history.
I know we are talking
about Band-Aid solutions here.
Even if we got rid of all the
problems with the servicers,
that won't address the giant
pile of debt that people owe.
And even if we got rid of that,
that won't fix the central problem
that the cost of college
in this country is absurd.
There are proposals to deal with that,
each with pros and cons,
from putting colleges themselves
on the hook
for a portion of the debt
when students default on their loans,
to making college tuition free.
And I'm sure that we will discuss them
at another time.
We need to tackle the cost of college
and for everyone's good.
And I'm not saying college
is the right choice for everyone,
but it should be a choice.
It can unlock a lot of opportunities,
and be a net benefit to all of us.
It should be affordable for everyone,
regardless of what you study,
whether you're a medical student,
a business student,
or a certain
anthropology student,
heroically ramming
into your dipshit neighbor's car.
A grateful nation thanks you.
And now, this!
And Now:
Coming Up on "Inside Edition",
Just Taylor Swift Stories.
Holy war.
Trump's disciples declare
a holy war on Taylor Swift.
Plus, praise for Taylor Swift's
eagle-eyed bodyguard.
And, Taylor Swift, 10 minutes late!
And, here she is.
We're gonna show this to Taylor.
The little girl swept off her feet
to meet Taylor Swift,
by her boyfriend's shirtless brother.
Then, new video.
Partying in the club with mom and dad?
Plus, the Taylor Swift challenge.
And wobbly Taylor.
She just lost her heel!
And, mystery over who
really wrote the best-seller book
they've just turned
into a major movie.
Who is Elly Conway?
Is she really Taylor Swift?
And does this cat in a bubble
hold the key to the mystery?
And, Taylor Swift amnesia.
The bizarre phenomenon
plaguing Swifty nation.
They can't remember
that they've just seen the show.
That's our show. Back March 31st.
We're off next week. Good night!