SANDRA SMITH (CO-HOST): Sen. Elizabeth Warren there on the campaign trail pushing her trillion dollar plan that would use cash from the wealthiest Americans to just wipe away millions of college loans. Charles Payne is the host of Making Money on the Fox Business Network; sounds good, how does it sit with you, Charles?
CHARLES PAYNE (FOX BUSINESS HOST): It just doesn't make sense mathematically. It's one of these things if you start to campaign on this stuff and you start to make these promises and you have to live up to it, then ultimately it won't be the rich, right, who always have ways of evading this kind of stuff anyway, but it will be the -- maybe the upper incomes and you heard her say up to $250,000. So if you're a household making $130,000, let's say you're a plumber and you didn't go to college, they're going to be taxing you to pay for the college tuition of people who did. It's just one of these things that just doesn't make sense. It's upside down, and let's not forget we were made big promises by the Obama administration when they kicked the banking industry out of student loans that they were going to eradicate this issue. Instead it got a whole lot worse and so you got to be careful because if you're a college, you can start to charge even higher tuitions knowing you're going to get paid -- either the student will pay you back, or the taxpayer will pay you back.
BILL HEMMER (CO-HOST): That's it, the debt's gone. She said, “debt's gone,” Charles. Wall Street Journal: “Student loans were supposed to make money for the feds. Uh oh.” Did you read that piece?
PAYNE: Yeah, yeah. Listen, it's -- there was some -- there have been some programs and there were some programs even under President Obama that were actually generating in money. But I don't know that the federal government should be in this business at all, right? If they hadn't kicked out the banks and there was more responsibility, then you wouldn't have some of these onerous tuitions where there's no jobs out there. I mean, it's great that people go and they study what they feel good about, but in an economy if those jobs don't exist someone ultimately has to pay for that debt. So I don't know if I want necessarily federal government in the business of trying to make money on student loans or what they've done is push out the private sector.
