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CNBC GOP Debate: Paul, Gingrich Say Federal Student Loan Program A Bad Idea

Christine Detz |
November 9, 2011 | 7:09 p.m. PST

Executive Producer


Photo courtesy Creative Commons
Photo courtesy Creative Commons
Ron Paul has previously stated that he would do away with Department of Education and the federal student loan program and he was offered to the opportunity to retract that statement during Wednesday night’s CNBC “Your Money, Your Vote” Republican debate.  Paul declined.  

Instead, the Texas congressman said the federal student loan program was a “total failure.”  When pressed to answer on how students could be expected to pay for college without a federal student loan program, Paul offered this suggestion: “the way you pay for cell phones and computers, competition and quality goes up and the price will go down.”

Paul appeared to have company in the “end the federal student loan” camp – former House Speaker Newt Gingrich who called the program absurd.  

“[The federal student loan program] allows students to stay in college because they don’t see cost.  It allows them to tolerate tuitions going up absurdly, and in return they stay in school longer,” Gingrich said.



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Barb (not verified) on November 10, 2011 1:52 AM

Ron Paul offers the solution, of course when you first hear these words being a student, sounds so foreign that it takes a moment for it to settle in, the truth is that the government has created this monster in education/student loans.. Colleges don't care if it takes you 20 years to graduate... Inflation caused by the Federal Reserve and an open loan door have caused this massive debt for students.. Everything is entertwined all leading back to the federal reserve.. Ron Paul is America's last hope..

RayDan (not verified) on November 9, 2011 11:38 PM

Rons Spot on again. Everything goverment touchs in the market becomes lead. You can see the corrilation in other things too. Like Medical care, and the housing bubble.

Nate Rae (not verified) on November 9, 2011 11:20 PM

Arya took the words out of my mouth- Colleges raise the rates because they know students can get govt backed student loans. You take the government out of it and allow the free market competition and you will end up with better services and lower costs. Ron Paul is spot on and has been saying the same thing consistently and more importantly voting consistently for his 12 Congressional terms.

Arya Bagherpour (not verified) on November 9, 2011 10:38 PM

Economics 101: The amount of money in any given market segment will determine the price of the product. Increase the supply of money for a market segment without increasing supply and the price will rise dramatically. This is exactly what has happened in the education market segment. Essentially unlimited funds and the price has risen correspondingly.

Barb (not verified) on November 10, 2011 1:56 AM

I agree with you on Newt being a copy cat, and so have all the others, the problem is they are only lip service to the people, everyday more and more people support Ron Paul, they take a moment to THINK about what he is telling us, and realize that he is right... The others will not follow through it is lip service to the public for votes only...

Anonymous (not verified) on November 9, 2011 7:26 PM

Newt has been copying Ron Paul for the past few months and acting like the ideas are his. That's OK. It means Paul has already won if he is getting the rest of the candidates to think right.