This transcript has been automatically generated and may not be 100% accurate. 

... I ... welcome back to Opinion Journal I'm Mary Kissel it's graduation time or almost graduation time on college campuses across the nation ... analog listings are going to graduate with a lot of student loans ... well of the year one of those graduates out there that is Ardi pay off your loans ... the Obama administration is about to make you look like a soccer ... assistant editorial page editor James Freeman is here to explain ... the chain's what is the White House proposing to do ... well what they're saying basically is outlets create more ways for people ... not to pay back their student loans ... this is the can and strike a lot of taxpayers those a great idea but done basically the the concept is called income based repayment which is the ... you can borrow lot of money and similar program you don't need to demonstrate an ability to pay or ... or show your fight to a score is pretty much and suddenly you get a lot of money and not just for school and not just for college and grad school in your living expenses while you're in grad school so what the deal yes in some B ball amassed hundreds of thousands of dollars in debt so of ... income based repayment says ... oh well will love ... will allow you to pay the ten percent of whatever your income is even if that's a lot less than what you would owe him alone and eventually will forgive the loan and a ... the Obama innovation is to say let's make this available the more people and lets ... make it so that the IRS can ... tax you for what essentially becomes a gift when you buy a lot of money in the new open that so it can to cut about a trillion dollars in outstanding student loan debt read on the Obama missed ration has privatized assisted long markets are now taxpayers are only on the APUs are on the island of pride that his litany that drinking would still allow issued ... Friday ... and in that that there's a really behind all of this debt so in this isn't a free lunch is that while this is why it's so scary if you're watching this closely because it appears to be a free lunch because the fraudulent bookkeeping in Washington ... suggests that the of this is all just a very profitable enterprise for the government no downside ... the head of the CBO has said basically the counting is fraudulent because it doesn't take in the ... the costs of defaults which is ... the one in my ... mind one minor detail and now we have a Senator Elizabeth Warren weighing in ... with her own proposal we've got a call from around one pm on the screen and I quote ... if the Federal Reserve can float trillions of dollars to large financial institutions a low interest rates to grow the economy ... surely they can fund the Department of Education the money to fund our students ... keep us competitive ... and grow our middle class that Senator Elizabeth ... Warren salami if this straight games ... she stated ... that she wants students to access to the Federal Reserve ... rates of borrowing the discount window basically you can adopt the US and that's the honest and say here's another is in is another reason not to take her seriously but she's no she's gotta be grateful to the White House she's now ... they've made her look moderate Hutus were saying let's figure out ways not to pay the money back ... she's seems to be acknowledging that the money has to be paid out and it is ... only as repaid but but ... but this is what you know if you if you think the Federal Reserve is terrible ... this is a reminder how bad it could be if politicians directly control that ... and it became not an instrument monetary policy not to ... an institution that been so we hope manages with the banking system ensuring the fleet to the free flow of credit but ... essentially opinion bank Finma and have another stimulus pick it to Dole out ... transfer payments or up ... or really whatever else whatever else assistant editorial page editor James Freeman thanks so much for being with us thanks