Well I loved our discussion on taxes and we're gonna do that again and again because I think it hit a button here. It's something -- in this country needs to look at 20000. Pages of tax code. We need to talk. Well we are moving onto our next hour we all know what happened when the housing bubble burst our economy went into -- death spiral. That we are now coming out -- but according to a recent Bloomberg business week article. There is another threat on the horizon. -- one trillion dollar student loan debt with an almost 12% delinquency rate. The loans are mostly backed by the government. Which means for every loan not paid by the student who took it out we the taxpayers write the check. But the goes to continue to pay 20305000000. Dollar loans. It may well mean they are not buying a house or car or many things that might be considered the making of the American dream. This is a problem and we need to discuss some solutions. Joining us to talk about this two very hard working people we know who are trying to pay off their loans. Seth Dunlap is not in our sales department for Entercom he was valedictorian of his high school class in Washington State. Had scholarships. But still had to take out loans to attend the Edward. And tears -- Simmons better known and loved as teapot at B 97. She graduated from college in 2001. -- of 41000. Dollars. And now almost thirteen years later she still closed 31000. Deaths. Unbelievable. And joining us by phone is Bruce -- -- and nationally recognized expert in student loan management. And the founder of the student loan help some. Thank you Bruce thank you up teapot and thank you step into anyone out there who is going through this process. Of facing student loans concerned about how you're gonna pay them back. What it has meant in your life give us a call at 260187. So African start with you. You graduated. A beautiful school by the -- and beautiful degree hybrid arm around my hero and that you were not able to find a job in the field at the time now so what happened. Now so it forced me to really get a job pay the bills anywhere and and -- working in restaurants for. About four years four years from the time I graduated still applying looking for jobs -- get a few part time jobs and radio not in full time to pay the bills so. Works. At restaurants and you would know a couple the national chain restaurants for about four years to pay the bills and done. It was a struggle just have to pay rent and and food and certainly. Paying back these student loans they gave me a little bit of grace period that. Not enough for it it helped -- highest what you what your student loan ping wants every month. Right now banner now and then then it was approximately. 330. Combined there was a few different different loans. I'm didn't consult him on the one payment that was about 330. Before -- default. Okay we're gonna talk about the default because I think that's very significant thing is you know -- regroup and start paying back. But how much was the total that you -- today you graduate just under 60000. And that was with scholarship as with scholarships I was almost my first year. Almost full but a lot of those were one year only to -- shot three apply for the scholarships. And it's even back then that tuition was I can't imagine now have looked at it but even back then it was a struggle I wanted to go state couldn't. State and state great school glad I went there and worked out for the best that. Yeah I had to go loans because my my -- can help -- and couldn't afford it so now just under 60000. Okay and I keep saying he was valedictorian. And had scholarships and some public and public state university do you know. It's okay missed teapot yes miss graduate in 2001. Where did you go to school Xavier University beautiful and you ended up with 41000 dollars a month yeah and but my first year there I didn't have scholarships or anything I just had the regular financially in my first year there I goofed off. And by my third year there I realized too well I'm gonna have to do something because I cannot afford to stay here. Passed by a four years so you know I I really worked and I got on the four years and then in six months later that was the grace period and we got. Six months later I was hit with my first bill and I was still live at home 21. You know working here at Entercom. But I was part time. Soul and my hours were so crazy I couldn't get another job so that worked overnight some times you know it was just very difficult so. You know part time salary I had to start paying back and I think first set of payments was about a 182. And then I couldn't afford that sack kind of defaulted you know and then I got back on track and then you know did the whole income sensitive thing where. You tell them we can't really afford anything in and they say. All you know only. Let you pay this and that when you come back the payments are much more after like six months and and I did a deferment. And when I came back it was like 30160. So I've been paying 30160. Every month saints. Maybe 20022003002. You're still talking. 1211. Years and it's only down 101000 yeah. -- and in my word I know. Your children to be in college by the time he finished -- an -- I was just thinking about that my daughter is going to first grade next year and -- worrying about paying for Catholic school education it still paying on my own education. Well. We have a very nice man on the line and Bruce. Mess and cough I think they pretty much wrap presents. Perhaps millions of people who have these loans. I have a lot of things for pat -- and you're right they do there's. There's definitely millions of people in in similar situations. So and again it's and I don't mean to over dramatized this when I read it was a trillion dollars. And we're starting at 12% seems pretty high for me four default. -- could have they could be another crisis. Perhaps not like all we went through -- 0809 but certainly not torn -- is again. All year I mean it's it's there's a terrible crisis right now and you know a big part of the reason -- You don't act as cheers and south forcing these these student loyalty has prepared me campus beat them that are exempt from bankruptcy which means that. People not get discharged in bankruptcy. And -- -- credit cards and some other that -- people. On the political collection in you know over time you know the pictures to -- were not detail but it doesn't really activated daylight. This does because when you go to to all of the student loan. They'll take your tax return chat which is a big issue right now because everybody. It's our problem taxes and a lot of people count on the money but with all that accurate ball. Also well garnish your wages were you were fifteen to 25%. There and you know most people are. Paycheck to paycheck these days are pretty close to -- so. It -- a -- are so it's pretty big -- and -- -- there's a -- more problems penalties a problem with fault as well so. My number one applies to everybody is -- ignore it. Don't ignore that were hearing that I want everyone to stay with this and give us a call if you are going through this situation. Or you have any questions. 260187. Think. Will be back and we're gonna talk about what I really wanted to know was worth it. Financial on WA. We are talking about student loans and the impact it's having on so many lives. Having met teapot and Seth who both work here at Entercom. Both have teapot is not the 31000 today -- as 50000 to today. And now we're also joined by Christmas -- who is a nationally recognized expert in student loan management and the founder of the student loan help center. I wanna go back. You're going to college and believe in the degree and you're looking that your future and building your future because you cannot diminish the fact that -- degree helps. But now all these years later you're talking -- 1012 years later. You are still missing Burton too but it's bit yes you. Do you say it was worth it. Person. Only yes even though with what I've been through and I'm paying just over 400 dollars a month still will be for the foreseeable future. I did think it was work that -- learns. So much not only about the job it. I think -- you what's ecology could probably grew at this in their opinion of teapot that you learn so much about life yeah yeah at college it's in value police can't put it can't put a money total on it so I. Dan and that was ten years ago and cost of just exponentially risen since then and now so it's definitely something. That when I talked to my younger and not cousins nieces nephews that target ready to go to college just one college it was a big discussion they had everybody. -- I think it is a discussion. Because again something we mentioned before. Tragically people graduating from college there aren't the jobs that used to -- again. So -- having to perhaps go for something as both of you did he working in restaurants you working part time. He has still got that bill. Yeah OK before we go back to Bruce. Let's go to -- in Lafayette statement. Hello. Pay Stephen -- I. Two questions. -- an -- A my. And some but I understand the juniors and I should be done. My core to our life. -- heard Obama say on. During -- and forget London. Whatever happened. My other question. -- Chappelle. -- These interest rates or at -- along the double. Because -- It agreed to a lot it's been below churches below. You know both excellent questions are remembered especially the second one that there was a great. Gnashing of teeth with that Brewster you have the answer about the interest rates. Sure absolutely. They did come to an agreement last summer with the interest rates that they did not raise they tied it to the ten year treasury note. So it's kind of a complex formula they used that as. Interest rates rise in the country. Interest rates will rise for new student loans but any distance any existing student loan your rate has locked in for the life of the loan. OK so got to lowland and with it. And what about the what President Obama yeah. Well there's a great forgiveness program out there called a public service loan forgiveness program. It's available to anybody who works. And public service being -- Government entities furtherance of a public hospital school fire department prison system. So one or anybody who works for a non profit private company. And the way it works as much of quality and the Department of Education the television program. Then you must be on an income based repayment plans and after ten years of 120 monthly payments -- -- -- the balance of your loan. Tax free other type of forgiveness is that if you aren't one of these income based repayment plans what you do -- Nam war for public servants. Then after 45 years if there's a balanced left on your loan. That will be forgiven. -- so after 25 -- -- want to repeat that last 25 years if you have you know hated her. Yeah after point five years now these income based repayment and I've heard -- -- -- mentioned something about it it's a great great feature of the consolidation program the Department of Education grants now. It -- sure that you have an affordable payment for the life of your loan. Because each year you're paying a simple up or down based on how much money made that black sphere so if you make a little bit more favorable op. It is not it is not take into consideration your loan values so whether you have. 50000 dollar -- or hunter 200000 dollar loans. Problem not affect your payment will be able just be based strictly what you could afford when you -- quality in this program. It is -- Idearc income based repayment plan is just fantastic feature that's helping a lot of people now now that being sent. If you get injured very low payment because they're not making much money have a bunch of dependence. Then. A lot of people would think partly it's my local never -- out by the 50000 dollars payment -- dollars a -- public interest. That's where the 25 years comes back if you're on the incumbents are gonna plant for 25 years and at that time they forget the bounds left under -- The economic sense. I don't know him. Is that the applicable to any have you. It -- could be yeah absolutely couldn't come at me I'm what's the what's the percentage of the income as at a fixed percent and she's obviously said that so what what is the result. No it's not it's not that simple formula taking into consideration. Three factors. One you -- adjusted gross income -- buried -- -- file your taxes jointly. And they take into consideration spouses and competent you're if you vials individually. Worker not matter it's just -- partner Justin grows they also take into that now how many dependents Cuba and the final piece of it take into account. It is if you are buried in filed jointly users are losing column. -- will take in the consideration any federal student loan director's -- passed because they know that's another expense. So they take all that you literally just put it in the calculator that the mystery their formulas I think it's. Locked up with KFC's you know magic recipe. But -- put it in -- and it'll it'll -- -- options in. It really does we have a lot of people who -- with two payments of 34 spots 600 dollars on the crow loans. That get payments as low as you know under a hundred dollars and some people even qualify for payments and zero dollars based bothering common. When you consider opening. That means that right next year until you're re sort of -- come again you don't have to make any payment in your loans will not -- to default and will stay current. That is major. I appreciate your call I wanna go to. Stephen in Lafayette. Because you were asking about interest rates on just wondering if that didn't answer your question Steven. Yet and on they were saying I completely agree with that. Bill -- it's do borrow should get great total rewards that. On the and it allowed you to hear it is better and job which in and is saying are these my will. Increased -- -- were. Income which goes to the student loans so I can't let out. -- and a was that. I appreciate that Stephen Jennifer you were also calling also about interest at rates. Where your was your question answered. -- -- Yeah I went to school for college credit. Military college back in the nineteenth. At about 930. And initially support and that it talent -- the most everybody else -- report thousand dollars student loan. And of course it was in the same thing here lately it would determine from the fans that never a topic on. I've consolidated everything in income contingent plan ballot in. Only interest is now over and out and dollars and still trying to -- -- our -- paying the interest not principal. Don't default don't default no fault. Jennifer are -- very very much we have to break again we're going to go to the newsroom and on names but stay with -- every one as we talk about student loans practice. Going lower and lovers teapot that 97. And so done. One of our sales trip that sales people for Entercom radio. Both have significant student loans and paying for over ten years. And I'm convinced will always pay it now that I think they're eyes lit up for what to our wonderful -- Bruce mass and com has been telling them about. Options that are available. To kind of get you through August and scholars still. Another ten grand it's the story we're hearing let's we have some of the -- Ingrid. I'm okay I'm back in the -- in air your. Expert on the line and on the question but I -- You patent what I graduated years. Arm because. I can't buy equipment debt to income ratio below the high so I didn't want tying. They won't let me. I have to pay within that ten years because. Apparently a pipeline. But they can send it some people that you want you. But my debt that I you know apparently is not that. Who blocked that that -- You know. You know Ingrid you bring up but I thought that to -- and in the commercial. Some of his loan is a private loan -- a government is your. All of these are all about the the well I. It quite. Let them out there I liked importantly I think I needed it Michael than that it -- -- but. I needed it but let. Children you know and I'm glad that I elected because what the unfortunate and let them stand back out there and then. And now you know thankfully -- can. Don't myself and am actually talk about how. I -- because. I had -- I had the departed and and I implement you know I think it'll. Boris well let me -- is there any help for her. Absolutely want what you -- -- leaders are on the situation. A tenured player and you probably pretty -- payment. Good qualities -- -- speaking about you need to consolidate it through the qualities in using get a couple of options one. The -- standard plan available via they'll probably be thirty years -- a lot of sign that was properly. But in the lower income Rachel -- also depending on your your job much money you make independence and so forth that companies can play. They also give -- much lower payment. But either way each and much much lower than what you're. -- I've looked and while I Google and their. And one of the things like that out yet alone and by saying it would be -- Years at the end of the paint over that -- it was the England and there and I currently. Only thing you can go and -- -- well department. One. Think -- National loan payment program. What you apparently the lottery. And the -- that that and you talk. About that. I actually called the 100 number eight where saint that would help in that that what you. Pay them 500 dollars to do it -- Like we can do it right. You know to partner yeah. Yeah -- That's debt but some good points on your numbers on do you work for the hospital where yet or. I went. Out and I'm going to school. I don't remember exactly every year it would come in Oxnard. We -- that well without consent in. Came back well. When it came around we are happening. And no one okay. So -- -- Yeah. You may qualify for the public service loan forgiveness of -- possible in order to the public hospital you'll qualify for the public service loan forgiveness everybody. Who who work some public service works for nonprofit which it sounds like you do. What qualifier for that which means he could get an income based repayment plan. And after only ten years -- -- the talented. Hopefully you're -- will be lower than it is now another option -- has not talked about the standard in the thirty years and it's a long time in your right if you make -- minimum payment like democratic art. A period for a long time pay a lot of money. But. By this -- teacher. You can pay more than minimum payment any time -- light. Everything over the minimum payment local ports -- principle which -- to cut down monitors drastically. You'll you'll accomplish two day one. The -- off a lot sooner. So you'll along an interest in two. Because certain minimum payment will be so low -- -- how much lower debt to income ratio of the house. All the music. -- this is great Ingrid I really appreciate the culvert with some other -- need to move but good luck to you and that is great. Great news for her -- let's go to log on James engine until you were talking about loan forgiveness James did that answer your question. No actually I have a question and a comment -- was about you know Michael was about well. -- all my loans and that we're gonna talk about forgiveness like and I get my money back now we're talking about forgiveness. And number two Mike comment. I used to live in an academic -- you leak it. City and all these people that -- Saw that went to these beautiful. University with a big names than name dropping that's exactly what it wants and then name dropping when the bill came around now they want to have. Forgiveness now -- now with the repayment now they want this that the other. But a lot of did take a look at that when they were getting too. I ended up going to a small state school. You know -- been a network street you know pre jobs that aren't truthful Tom part on what the school on Tuesdays and Thursdays and that we. Bit of extra money went to date for a while the world. Or -- or my tuition something I'm real hard time you know. My heart bleeds for you but -- broke. You know when you're not the plot that early big name. There's their catch to. You are right thank you a lot for your comment -- didn't take another break but stay with this as we continue our talk on student loans I'm Angela under the WL. We're talking student loans we've got two more callers -- very quickly you had a comment -- question. Yeah I liked you previous call or quite college. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- They make these debts and and they want to be they wanna be forgiven of the earlier Albany -- -- -- -- couldn't get back on the senate extenuating circumstance. But the decision you make the Opel before it's hot -- debt all. I mean it's it's it's it is just a bait me to people that. You'd be trying to kick it 200000 dollar. Get out of college and then -- we shipped him back out. Decisions should say before they made this project out there that university here -- college said ought. You know that much money and we should be coming up a bank or anybody else. Approved we own that's one other factors that a look at why are attacked while the ability to pay -- -- while. Let me ask Bruce because there's certainly been a national discussion on the value of the degree. And I think when it's getting down to as college prices have have grown enormously. That these -- that these kids get at the end. If they were in a stunning French or English or something like that beautiful subject but how is that gonna transfer into a job that will allow them to pay back. Is there a system perhaps of of honesty where -- went just what this man sang when they sign up this OK at the end of four years this is what you that's going to be. And here the job possibilities in your field. Are you still comfortable. Getting that job. Well. Here's the public support -- -- out of very hotly debated topic now. You know there are some people for instance let me use teachers which rate for faster than -- global will say it's one of the most underpaid notary. But that being many teachers -- actually in a couple 100000 dollars in debt -- -- pursuit of masters or beyond. They decide they did love teaching elementary school that's what would respond accordingly in that it may twentieth 53035000. Dollars. About 110 to 20000 dollars in -- There's no chance that as we get paid back to you coaches and rare. Comic -- under which I'm using it that we respect it's not a 120 out that forty degree and I agree. -- -- It may have bought at an airport that -- -- the it has got if you get if you gonna be a teacher. Watching you are bad that there are being in tenure at a teaching degree from Dallas art beat integrate. -- elementary. -- You gonna get the same topic back in the that you. All of the -- -- gently back. Yeah I mean yes and you know big. Got a extra -- -- net income got a degree what I call you get into. Tell us up for it a step further that I remember the days and this is 1015 years ago. We're law schools were cramming kids and because they were moneymakers. But all of a sudden there were not enough jobs. And so the law schools made the rule that they would show the incoming class what they graduating senior class what percentage of them. Got jobs. Again so that you can realistically evaluate. All this money and time and pouring into it I may not be able to get a job. You know yeah I had -- you know. By the sudden qualified to go to our. What this school orchestra scores it would cost me -- hundred. It is it is after the it's epic about all of that trio program it is the same thing -- the street about what you want to keep America your great. And -- at the the same job that the guy is expected to Park City at -- it. It's -- possible I didn't. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- may be you know you know they get back a bit aren't saying if you mourning period that kind of debt that it -- -- that. -- thank you very much for your thoughts were gonna move onto another caller very quickly. -- Yet they're two quick questions one actually talk about teachers and my wife is a teacher a private school one that government could just -- your show. Who we -- exactly would those operations loan program be. And second properties in world companies they've been -- lot -- That they charge -- among the Twain on -- on miles. Problem in to help you assisting eating just the best repeating the program possible maybe -- for in this. If you qualify as gorgeous so repayment where it would be. A teacher at work private school. Sure that a private school as an -- but that's all. You. It is. Located -- Is pretty at a profit and starred. In it or off topic -- -- for profit private school would not qualify for loan forgiveness program unfortunately. -- -- -- -- -- -- -- -- -- in the they would all be consolidated. Into the department of education's program. Now you brought up that point there's a lot of. Mean that there's that that helped consolidate and our company helped people consolidate as well and -- -- and vault and you know people situation. That you mentioned that the audience 343040. Dollars a month that that people are charging. Then that's not what did the one point in the ball off the kind of an 8% in the war but the standard that is kind of a game and that's the wonder based on the that when you're on an income based repayment plan reverend -- every year you have to recertify parameter symmetrical all the lower level. Every year the department's cage well why you. These companies claiming that. -- we will do that for each year they'll help you lesser player in com. But it that's -- very very it's very simple process they know you. You can do an outline some people Camille Little -- all our clients we do vote for Hillary for effort it takes. All three -- for people to do it so that either charging is just an attempt for. Companies to build up residual -- off people and spearmint it's terrible and you know others to beginnings as regulations in the industry are starting to happen right now to really happy to see. By I'm glad he did bring that up as a lot of people and situations that are going to -- in Google and -- -- student loans and run into a lot of these companies. And he just. The company of people ended on the world and that's okay. -- it's very true that the government program and we do now and thousands the year. In a large percentage I mean eighty -- that 90%. Have to pull it along the way the lenders that are on the front right lead. That the the -- well -- and quality people and it did all -- -- it is it is good job. The government didn't put in the program together and it's a fantastic program. -- be equally as horrible job at apple on it's a lot of people don't know about it in Portland making it easy for people to do so. It is so great culpable to take the residue on the only urgent -- right of the Department of Education if you want -- -- doing -- -- Some people go to each blocker in the count it somewhat -- themselves. Well we've -- people on the reputable company to check the Better Business Bureau and so want checked. FaceBook pages or. Also -- or hate in Iraq but we are grow roots there. Bruce you're the best Bruce method -- I can't thank you enough founder of the student loan help senator I think all of our callers I think teapot and Seth. Stay with this we're not done yet and coming up very shortly our code word for the 1000 dollar cash contest. For more on the student loan get me out a default dot com.