College debt may not be worth it

In a recent poll nearly half of Americans said the cost of a college degree isn't worth all the debt. President Trump says colleges should share in that burden.

Harvard Professor Todd Rose told Fox Business he agrees with the President's 'skin in the game' argument.

"That's a no-brainer, right? I believe deeply in the idea of 'skin in the game' and I think the lack of 'skin in the game' on the part of colleges has allowed these runaway costs and it's gotten out of control."

President Trump says 'skin in the game' means colleges that accept tax money should shoulder some of the debt burden through a loan risk-sharing program. More than a quarter of students default on at least one student loan within 12 years of entering college.

Professor Rose says that makes sense.

"We want that 'skin in the game' and we should move forward with it. We also want to be careful with the details so that we don't incentivize colleges to reduce loans and opportunities for poor kids, right? We can accomplish both but it does start with expecting colleges to have 'skin in the game.'"

The President's loan reform plan would require the colleges to share some of the loan risk by covering some of the payments if students go into default.

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