Obama: ‘Michelle and My [Student Loan] Bill Was Higher than Our Mortgage’

SMITH: "Didn't you just pay off your loans in 2004?"

OBAMA: "Yes. In 2000 and -- basically, the year I  was elected to Senate, the year before I became a U.S. senator was when finished paying off all of our loans. Combined, Michelle and mine bill was as higher than our mortgage, and right now, student debt is actually higher than credit card debt --"

SMITH: "40 million people currently with student debt."

OBAMA: "Yes. So this is a massive generational challenge. There are all kinds of things that we can do but it's going to require cooperation between the states who have to put more money into it; the federal government who have to think about how we can lower the debt burden and make sure it's managed better; the students and the parents who are going to have to be better consumers. So a lot of what we are trying to do is like 'know before you owe' and figure out how to -- for example, graduate on time. One of the things students think about is, 'I will take 5 years, I will take fewer credits,' not thinking about the fact that if you are not out in 4 years, each semester that you are taking that's just more debt."