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Day Four of Sonia Sotomayor Hearings; Mother's Fight for Health Care Reform; Action on Health Care Reform; Credit Cards and College Students; Veteran Dreams of Opening Pet Pampering Shop

Aired July 16, 2009 - 12:12   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

WOLF BLITZER, CNN ANCHOR: All right, so there you hear Senator Jeff Sessions saying there won't be a filibuster against Sonia Sotomayor. There had been a Democratic filibuster against Samuel Alito when he was nominated by then-President George W. Bush. Unlikely that a filibuster would have won, given the fact that the Democrats have 58 Democrats, two independents who vote with the Democrats.

That's 60, enough needed to beat a filibuster. But he was gracious in making that comment, nevertheless. Senator Jeff Sessions saying he appreciated what was going on, refusing to say how he would vote when he told us earlier, just a little while ago, he was still undecided.

We'll continue our coverage of these hearings in just a moment.

We'll be right back.

(COMMERCIAL BREAK)

BLITZER: We're continuing our coverage of these historic hearings on Capitol Hill before the Senate Judiciary Committee. The Supreme Court nominee, Sonia Sotomayor, still answering questions.

We're now in the third round of questioning. Each senator will have a maximum of 10 minutes to wrap things up.

Senator Jeff Sessions, the ranking Republican, the top Republican, asking some questions right now, getting through some of these substantive issues. They're in some technical stuff right now.

Jeff Toobin, as we watch this wrap up right now, the third session, we clearly have heard from the chairman, Patrick Leahy, he's hoping that not everyone get through these 10 minutes, that they'll be able to move on.

Later in the day, there will be witnesses who will be coming forward and testifying on a whole host of issues both for and against. But I want to play for you this little clip of Senator John Cornyn, the Republican Senator from Texas, because he raised with her the very serious issue of race.

(BEGIN VIDEO CLIP)

SEN. JOHN CORNYN (R-TX), JUDICIARY COMMITTEE: Do you agree with Chief Justice John Roberts when he says the best way to stop discriminating, based on race, is to stop discriminating based on race?

SONIA SOTOMAYOR, SUPREME COURT NOMINEE: The best way to live in our society is to follow the command of the Constitution, provide equal opportunity for all. And I follow what the Constitution says. That is how the law should be structured and how it should be applied to whatever individual circumstances come before the court.

CORNYN: With respect, Judge, my question was, do you agree with Chief Justice John Roberts' statement, or do you disagree?

SOTOMAYOR: The question of agreeing or disagreeing suggests an opinion on what the ruling was in the case he used it in. And I accept the Court's ruling in that case. And that was a very recent case.

There is no quarrel that I have, no disagreement. I don't accept that in that situation that statement the Court found applied. I just said the issue is a constitutional one, equal opportunity for all under the law.

(END VIDEO CLIP)

BLITZER: All right.

Very sensitive issue, Jeff. Race has certainly come up in many ways over the course of these four days.

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: And the profound question that Senator Cornyn was asking is, is affirmative action discrimination? Is it discrimination against white people?

For example, the case in which that -- Chief Justice Roberts made that comment involved the school districts of Seattle. And one of the things Seattle did was, they set up school districts that had a provision for establishing some racial balance in each district. They said that, we want to make sure that there aren't all white and all black school districts, and the Supreme Court said, that's not acceptable, you can't use race in that way. And this keeps coming up.

It came up in the New Haven case that we've talked about so much. Can New Haven cancel a test because they feel African-American didn't do well enough?

Can the University of Michigan Law School use race as one factor in admissions? In 2003, Justice O'Connor said yes. Very unclear whether the current Supreme Court would say the same thing.

All these questions are about, may the Supreme Court approve the use of race? Is that discrimination, or is it a benign attempt to achieve diversity? That's the heart of the controversy.

BLITZER: And I'm going to bring Maria Echaveste in, a Democratic strategist who teaches law at the University of California Berkeley, worked in the Clinton White House. The issue of race, it doesn't get more sensitive than that.

MARIA ECHAVESTE, SENIOR FELLOW, CENTER FOR AMERICAN PROGRESS: No, certainly it's part of our long history. But I think we need to be very clear that this decision, this case that Jeff referred to, is, in fact, the precedent. And Justice O'Connor -- and I'm quoting from her opinion -- said, "Just as growing up in a particular region or having particular professional experience is likely to affect an individual's view, so, too, is one's own unique experience of being a racial minority in our society like our own in which race, unfortunately, still matters." So, this is still an issue, but this -- race in that case was found that it can still be considered as part of an overall evaluation for admissions.

I think the New Haven case has been misconstrued, because it was at bottom whether the city properly acted to throw out a test before it had been sued. That's what the issue was. It wasn't affirmative action, per se.

BLITZER: It was that case, and it was also the "wise Latina" comment, an utterance that she made, that sort of gave the impetus for this whole discussion, Gloria, about race, playing such a significant role.

GLORIA BORGER, CNN SENIOR POLITICAL ANALYST: Right. And as Senator Coburn said when he was speaking with her today, there seems to be a conflict. And this is what Republicans seem to be focusing on, whether that writing or her speeches truly reflect her passion, or whether her legal rulings reflect who she is.

And so there's this kind of dichotomy, and they're trying to resolve it. And those who resolve it like Lindsey Graham, seem to be saying, I can resolve it in saying that I believe your legal opinions will reflect who you are.

BLITZER: Because Lindsey Graham did have another exchange with her precisely on this subject right at the very end of his allotted time.

Listen to this.

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM (R-SC), JUDICIARY COMMITTEE: You have said some things that just bug the hell out of me.

SOTOMAYOR: May I...

GRAHAM: The last question on the "wise Latina" woman comment. To those who may be bothered by that, what do you say?

SOTOMAYOR: I regret that I have offended some people. I believe that my life demonstrates that that was not my intent, to leave the impression that some have taken from my words.

GRAHAM: You know what, Judge? I agree with you. Good luck. (END VIDEO CLIP)

BLITZER: Gracious comments from Lindsey Graham.

You know, he's been very, very tough with her, but at the same time, very generous in saying, you know what? I may still vote to confirm you.

JOHN KING, CNN SENIOR NATIONAL CORRESPONDENT: And again, we've talked about this. His standard is a president wins the election, a president gets his pick, unless the nominee proves that he or she is unqualified.

I think what has been interesting, a little bit on that question, much more so in the previous question you played from Senator Cornyn, and the other day when Lindsey Graham asked what seems like a simple question, "Are we at war?" You see Judge Sotomayor, the wheels start turning, because, you know, Justice Roberts said in that case, the best way to end discrimination is to stop discriminating.

Most people would say, why would you disagree with that? But you see her wheels turning. Where are we going here? Because in this last round, the Republicans are trying to take her out.

She thinks, at least, are they trying to take me out on thin ice? Is there a question coming next? So, do I need to be careful answering what seems a pretty simple question?

That's part of the fascinating drama of this. You can see the wheels turning in her head. Yes, sure, I agree with Chief Justice Roberts, but then if I say that, what's coming next?

BLITZER: You know, and that question that Al Franken asked about, you know, "Why do you want to be a Supreme Court Justice?" I thought that it did -- she had an opportunity to explain her decision 17 years ago when Pat Moynihan, the then-senator from New York said, "You want to be on the federal bench to begin with?" She had to take a pay cut.

We did check, Candy. A Supreme Court justice, associate justice, makes, what, $208,000 a year? The chief justice makes $217,000 a year. That's a lot of money, but certainly in private law practice, working for big Wall Street firms, you make a whole lot more than that.

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: It is. And her simple answer to "Why you want to do this?" is public service. "I believe in public service," which is just the right answer to make, because you don't generally get rich in the rich, legal lawyer term when you work for the federal government, unless, of course, you move on out after that. And then you pretty much can get a lot of money for it.

But, you know, basically she said, I'm in this for public service. And I think a lot of people -- one of the things we miss sometimes is so many of these people, whether they're on Capitol Hill, whether they're sitting on the Supreme Court, they could make so much more money elsewhere, so the motivation of public service is a true motivation.

BLITZER: She said public service, love of law, love of country. Those are the reasons she decided to take that pay cut and go into the federal bench, go on the federal bench to begin with.

Dana Bash, our senior congressional correspondent, is getting some new information, Dana, on when we might get a vote in the committee and then on the floor.

What are you hearing?

DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: Well, we talked to the chairman of the committee, Patrick Leahy, who says that he is going to at least try to put Sonia Sotomayor's nomination on the committee calendar next week on Tuesday. That is the Democrats' hope.

However, there is a rule in the Senate Judiciary Committee that any senator can put their hand up and say, no, I want to hold it over for a week. And I spoke with Jeff Sessions, the top Republican on the committee, and he basically suggested that four days between the end of the hearings and having a committee vote is pretty fast, especially when, in his words, when it's the United States Supreme Court we're talking about, so he suggested that somebody probably will delay it.

So, it probably will be in about two weeks. That's likely.

But ultimately, Democrats' will have their goal, and their goal ultimately is to have a full Senate vote for Sonia Sotomayor by the time the Senate leaves for August break. Everybody, Democrats and Republicans, believe that that is going to happen.

But if you just look at what's going on behind me, you have four, five, maybe even six Republicans still lined up to ask a third round of questioning, not because they think they can derail her nomination, but because they still want to, you know, show that they're trying, and that's the same reason why Republicans want to give it just one more week before they vote.

BLITZER: This is a lifetime appointment. She's going to be on the bench 30 or 40 years, who knows how long, and they have every right of course to get her on the record. It's the only chance they will have before she becomes a life member of the United States Supreme Court, so that is their prerogative and they're taking advantage.

Dana is going to be with us throughout the day watching what's going on. The third round of questioning is now under way.

Our coverage, remember, uninterrupted, is available for you at CNN.com.

We're going to have more coverage about what's happening in Washington, on Capitol Hill, plus all the day's other news, when we continue. (COMMERCIAL BREAK)

TONY HARRIS, CNN ANCHOR: Hello, everyone. I'm Tony Harris.

Here's what we're following for you right now in the CNN NEWSROOM.

New developments in the killing of a Florida couple who took in special-needs children. Authorities in Pensacola holding a news conference that just wrapped up moments ago. They say they have pinned down a motive.

There are eight people under arrest in the case. The latest arrest coming yesterday.

The Escambia County sheriff says Pamela Long Wiggins will be charged with accessory after the fact in the deaths of Byrd and Melanie Billings. The parents of 17 children were shot July 9th in their home. The state attorney says the motive was simple -- robbery.

(BEGIN VIDEO CLIP)

BILL EDDINS, STATE ATTORNEY: In our opinion, this was a home invasion robbery where the people stole a safe. And we recovered the safe, and we think it's as simple -- and I personally -- the sheriff can speak for himself -- think it is as simple as that in terms of the motive and the -- and what occurred.

(END VIDEO CLIP)

HARRIS: Investigators say they still want to question some so- called persons of interest.

The House taking action today, on the future of your health care. Two committees expected to vote on a sweeping reform plan. It seeks to cover nearly all Americans through subsidies for the poor and taxes on the wealthy. We will delve into the details with senior medical correspondent Elizabeth Cohen in just a few minutes.

Meantime, President Obama is keeping up the pressure on lawmakers to act before the August recess.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: It's time for us to buck up, Congress, this administration, the entire federal government, to be clear that we've got to get this done. Our nurses are on board. The American people are on board. It's now up to us. We can do what we've done for so long and defer tough decisions for another day, or we can step up and meet our responsibilities. In other words, we can lead.

(END VIDEO CLIP)

HARRIS: So, the real fight over health care is heating up. But behind all the bickering and the partisan proposals are personal stories. CNN's Jim Acosta reports on one mother's fight for reform.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN CORRESPONDENT (voice-over): Before Washington takes another step on health care reform, Hilda Sarkisyan wants the politicians to hear her story.

HILDA SARKISYAN, MOTHER OF CANCER VICTIM: If we don't change this now, my story is going to be their story.

ACOSTA: Sarkisyan's 17-year-old cancer-stricken daughter, Natalie, made national headlines when the family's health insurance company denied coverage for a liver transplant in late 2007. She raised a ruckus and the company reversed its decision. The moment caught on camera.

But it was too late. That same evening, Natalie died.

SARKISYAN: Now she's in heaven.

ACOSTA: Sarkisyan was brought to Washington by Democratic activists pushing for a reform bill that would give Americans the option of joining a government-run plan to compete with private insurers. The option, they say, will keep the industry honest.

SARKISYAN: This is my message to everyone. Insurance companies cannot decide who's going to live and who's going to die.

ACOSTA: But she will have to win over an army of skeptics, from Republicans who are nervous about the price tag...

SEN. ORRIN HATCH, (R) UTAH: They're spending too much. They're taxing too much to get us there. And they're writing legislation that is totally partisan that -- that isn't going to work.

ACOSTA: ... to special interest groups. Beverage companies are running an ad opposing one congressional proposal that would pay for reform in part with a soft drink tax.

UNIDENTIFIED MALE, AD: This is no time for Congress to be adding taxes on the simple pleasures we all enjoy, like juice drinks and soda.

ACOSTA: But the president is ready to play hardball.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: And those who would oppose our efforts should take a hard look at just what it is that they're defending.

ACOSTA: The Democratic Party has a new ad out aimed at its own senators who are wavering on reform.

UNIDENTIFIED MALE, AD: It's time.

UNIDENTIFIED FEMALE, AD: It's time for health care reform.

ACOSTA: In the message war over health care, Hilda Sarkisyan vows no surrender.

SARKISYAN: I know I'm going to face Congress and I know I'm going to meet the president eye to eye and I'm going to tell them, he got the responsibility to become the president and we're proud of it. But guess what, we need something in return.

ACOSTA (on camera): the president says he wants both the House and the Senate to wrap up their work on health care reform before lawmakers take their long August break. And the halls of Congress may get crowded as supporters of reform plan to flood those hallways with more people like Hilda Sarkisyan.

Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

HARRIS: Well, it is a wrap soon for Judge Sonia Sotomayor. If all goes according to plan, the Supreme Court nominee will finish the question/answer portion of her confirmation hearing. Then senators will hear from witnesses for and against her. Let's go live now to CNN congressional correspondent Brianna Keilar, there she is, on Capitol Hill.

And, Brianna, are we into the final round of questions, this final 10 minute round for the nominee right now?

BRIANNA KEILAR, CNN CORRESPONDENT: You know what, Tony, I'm not exactly sure if we're there yet at the moment. But we're certainly moving in that direction if we're not. I'm trying to get a sense of exactly who is asking questions at this point, Chuck Grassley it appears to be.

HARRIS: It looks like Chuck Grassley, yes.

KEILAR: But what she's been grilled on so far today is a little more of yesterday. She has been grilled on some of those hot-button issues. For instance, abortion. And we didn't hear a whole lot different from what we heard yesterday, Tony. She said that the law -- because she's been couching, of course, everything in the law, that Roe v. Wade, in a more recent case in the 1990s, Planned Parenthood v. Casey, says a woman has a right to an abortion in certain situations. So that's not really a headline there.

But certainly when she was questioned about gun rights, and we heard this question coming from the very frank-speaking Senator Lindsey Graham. He was explaining why he really wants to get to the heart of how she feels about gun right. Let's listen to him.

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM, (R) SOUTH CAROLINA: I do believe, at the end of the day, you're not going to find a law book that tells you whether or not a fundamental right exists, vis-a-vis the Second Amendment. That you'll have to rely upon your view of America, who we are, how far we've come and where we're going to go and our relationship to gun ownership. That's why these choices are so important. And here's what I'll say about you. And you may not agree with that, but I believe that's what you're going to do, and I believe that's what every other justice is going to do.

(END VIDEO CLIP)

KEILAR: Now, Lindsey Graham went on to say, Tony, that some of Sotomayor's speeches, "bug the hell out of me." In particular, he was talking about the wise Latina comment. But when he was talking about gun rights, he went on to say to her -- and he has hinted he may vote to confirm her -- that what makes her more acceptable to Graham is that he thinks she's broad-minded enough to understand that America is more than the Bronx, where she is from, and bigger than South Carolina, where he is from.

HARRIS: Yes, yes, good wrap of where we are right now.

Brianna Keilar on Capitol Hill.

Brianna, appreciate it. Thank you.

And just this morning, a deadly shootout at an apartment in Jersey City, New Jersey. The pictures are just amazing here. Eight police officers are hurt, one critically. Look at this. Two suspects are dead. A police official says one of the wanted men "came ready to do war with us." Five of the officers were shot. The other three were injured during the shootout.

(BEGIN VIDEO CLIP)

MAYOR JEREMIAH HEALY, JERSEY CITY, NEW JERSEY: The entry was attempted to be gained through the apartment and the people inside just started firing through the door and through the wall. One of our Jersey City officers was hit in the neck and the chest. He had a bullet-proof vest on. He went down. He's been operated on and things look good for him right now. Another one of our officers, that was immediately behind him, was also hit in the face. He was in very, very bad shape, life-threatening situation.

(END VIDEO CLIP)

HARRIS: Wow. The mayor later said the condition of the officer shot in the face has improved. So, some good news there.

More amazing video to show you. Take a look at this. This is Hazel Park, Michigan, 10 miles from downtown Detroit. A car collided with two big rigs last night. One of them a tanker. The explosion and fire caused the Interstate 75 overpass to, yes, collapse. Firefighters faced a real inferno battling and the fire last night. The driver of the car and the two truckers were not seriously hurt, but the impact of the crash was felt throughout the neighborhood.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The flames had to be 30, 40 feet in -- in the air. And the senior citizens, all this neighborhood, has lost power. And all the people are gasping for air in the senior apartment because of the fire.

(END VIDEO CLIP)

HARRIS: The tanker that exploded held 13,000 gallons of fuel.

The U.S. military in Afghanistan is turning to some old-fashioned footwork to find a missing soldier. It's handing out pamphlets in two provinces asking for help in the search. The soldier walked off a U.S. base with three Afghan counterparts. It is believed he's been captured by the Taliban. One pamphlet warns, "if you do not release the U.S. soldier, then you will be hunted." Another includes a phone number to call in case the soldier is spotted. The military has not released the soldier's name.

As Congress moves toward approving plans on health care. How will your health and your wallet be affected? Senior medical correspondent Elizabeth Cohen will join me to talk about it. That's next in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: New jobless numbers just out. The Labor Department reporting new claims fell to 522,000. That means last week about 47,000 fewer people filed for first-time unemployment benefits. And it is the lowest level since January. Government analysts say the drop doesn't necessarily point to improvements in the economy. Instead, it's largely because auto plants have reopened after being closed temporarily.

Democrats in Congress pushing ahead on health care reform. The first House votes are expected today. Two committees scheduled to take action on a plan from House Democrats. It includes a government- funded insurance option, requires individuals and employers to participate, and it taxes the wealthy to help cover costs. A Senate health committee approved its reform proposal yesterday. So, how could these plans affect your relationship with your doctor? Senior medical correspondent Elizabeth Cohen is here to talk about it.

What do you think here? Changes in our relationship with our doctors specified, laid out, in these plans? What do you think?

ELIZABETH COHEN, CNN CORRESPONDENT: Well, the folks who wrote these said, oh, absolutely not. Absolutely not. Our bill isn't going to change anything.

HARRIS: Yes.

COHEN: We're just going to try to make medical care better and less expensive. And we're going to try to insure the uninsured. However, there are some concerns that there are some provisions of this plan that could possibly, maybe in the future, affect the relationship with your doctor. So I'm looking at page 501 of the 1,000-page House bill. And if you look in here, there is a mention of something called comparative effectiveness research.

HARRIS: Oh, we've wanted to talk about this for a while. It's actually in the legislation.

COHEN: It's right here, comparative effectiveness research. It's in the bill.

HARRIS: Explain this to folks, please.

COHEN: All right. Well, what it is, is this is spending millions of dollars to try to figure out what are the best treatments for any given condition.

HARRIS: Sure.

COHEN: So, a woman has breast cancer. Should she have a lumpectomy or should she have a mastectomy, which makes the most sense medically, which makes the most sense financially. A man has prostate cancer. Should he have surgery to yank that prostate out, or should he have radiation? Again, what makes the most sense medically, what makes the most sense financially. And so what these groups would do is sort of try to come up with best practices, if you will.

HARRIS: All right, best practices. That means more research. Sounds good. Who could be against more research? So, what's the concern here?

COHEN: OK. There are some Republicans who are concerned that once they come up with those best practices, that then there would be pressure for insurance companies to only pay for -- pay for the best practices.

HARRIS: The best practices, right.

COHEN: And that medicine is an art, not a science. And so . . .

HARRIS: Wait a minute, doctors go to school for years to learn the science of anatomy and everything else, physiology, and now, what, at the end of the day, they're told that health is -- and the work that doctors do is as much about art as it is about science. Come on!

COHEN: The best doctors I know, the ones who are the most respected, the smartest guys and gals out there, they will tell you that medicine is an art, not a science. And you can have Dr. Jones and Dr. Smith seeing the same patient and they are -- they might come up with two different approaches, both of which are respectable and OK. So the question is, can science tell us what's really best? And is the aftermath of this bill, that if there is research that says what's best, will doctors be forced to prescribe that to their patients.

HARRIS: OK. So, in other words . . .

COHEN: Concerns. Nothing sort of in writing, but concerns.

HARRIS: That's right.

Another hot topic here, pay-fors. And we've been talking about this back and forth now for weeks, now, pay-fors. Look, in the plan here, is this going to cost a lot of money and can we pay for it? Who pays?

COHEN: Right, health care reform. All of health care reform is thought to cost about $1 trillion over 10 years.

HARRIS: Right.

COHEN: OK. That trillion dollars doesn't exist at that moment. They have to find that trillion dollars some way. And Tony had talked about, for example, taxing the rich, which everyone thinks is a great idea, apparently, except maybe the very rich.

HARRIS: Right. Right.

COHEN: Four Democratic senators had another idea that they've sort of been floating out there, and they said let's tax insurance companies. Let's tax them. That could help us raise as much as $100 billion. Now as you can imagine, the insurance companies aren't too excited about this.

HARRIS: OK. And so the finance committee on the Senate side. The House side is working on it as well. And we'll just see what comes out of it. We ultimately know that these -- there's a Senate bill that comes out. There's a House bill. And it all has to be worked together and we've got to get the comprises in, right?

COHEN: That's it. It will be interesting to see what they come up with.

HARRIS: Thanks for your help as always. Elizabeth, appreciate it.

COHEN: Thanks.

HARRIS: We want to hear from you about health care reform. We've been asking you to chime in on this. Let's continue to do that. What do you have to have in your health plan? Should the government mandate coverage? Do you support a public option? One more question here -- who should pay? We invite you, as always, to join the conversation on our NEWSROOM blog. Just go to cnn.com/newsroom.

So, hitting the books and pulling out the plastic. College students are using credit cards more than ever. And that can be very dangerous. Personal finance editor Gerri Willis is here to help us get schooled about the pitfalls of plastic on campus.

And, Gerri, good to see you.

You know, unbelievable how much these students rely on credit. Just how bad is it?

GERRI WILLIS, CNN CORRESPONDENT: Well, I got to tell you, Tony, it's disturbing.

HARRIS: Yes.

WILLIS: Almost 30 percent -- almost a third of undergrads, put tuition on their credit cards.

HARRIS: Oh, boy.

WILLIS: That's according to a recent study by Sallie Mae. And on average, students carry about five cards. Can you imagine, five cards?

HARRIS: No, I can't.

WILLIS: Yes, I carry two, OK. It gives you an idea that's a lot. The unfortunate fact is that only 17 percent of students regularly pay off their bills, so they're incurring a lot of interest fees.

The bottom line here, college students should be building their credit while they're in college. Credit cards are a good way to do that. You just have to build good habits.

HARRIS: Well, Gerri, college students, will they actually be seeing some changes in this area soon?

WILLIS: Absolutely. Well, you know, the new credit card legislation that we talked so much about on this network, it starts in February. If you're under 21, you're going to have to get a cosigner before you can get a credit card. And, guess what, marketers are not going to be able to set up shop on campus. The expectation out there by people in the industry is that they're going to move off-campus to off-campus events, maybe even the local watering hole.

HARRIS: Got you.

WILLIS: To give out cards. So, you know, this semester coming up is going to be prime time for credit card marketers to get people signed up and using credit cards. So you really want to be aware of that, whether you're going to college or you're the parent of somebody going to college.

HARRIS: Absolutely. And I got another quick one for you. What kind of credit card should college students actually look for?

WILLIS: Well, there are student-specific cards. And you can find them on cardratings.com or creditcards.com. You have to look for a card with an interest rate of 17 to 18 percent. Believe it or not, that's low for students. No annual fee. Don't -- you can get a rewards card, but only if you plan on paying it off each and every month, which you should be doing.

Here's some of the best student-rated cards from cardratings.com. You're going to like this, Citi ForwardSM Card, Chase +1 Student MasterCard, which has a FaceBook component, and Discover Student Card. Their rate is 14.99 percent, which is low compared to a lot of them. Take a look at those websites. Those are great cards for kids who are in college.

HARRIS: Hey, Gerri, any ideas, tips, advice, on ways that college students can better manage their credit cards?

WILLIS: You know, don't use your credit card for stuff like tuition, rent or groceries.

HARRIS: Yes, yes, yes.

WILLIS: You want to use it in an emergency. Maybe to book a flight home, to pay an unexpected car bill, and then you've got to pay it off each and every month. You really don't want a revolving balance if you don't have a steady source of income.

And, of course, you can send questions to us at gerri@cnn.com. We love hearing from you.

HARRIS: It's good to see you. It's good seeing you, Gerri.

WILLIS: Good seeing you. My pleasure.

HARRIS: All right. Let's do this again tomorrow.

WILLIS: Absolutely.

HARRIS: And still to come in the NEWSROOM, turning pet pampering into a way to survive the recession. We will show you one woman's plan. That's next.

(COMMERCIAL BREAK)

HARRIS: Unemployment, high. The recession, dragging to an end. Many financial experts believe it is the perfect time to start a small business. In this week's "Money and Main Street," we meet a decorated, out-of-work military vet looking for a financially sound way to follow her dreams and become her own boss. CNN national correspondent Susan Candiotti reports.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN CORRESPONDENT (voice-over): In the eight years since she retired from the Air Force, Lori Lawrence has had three different jobs. She quit one and was laid off twice. After the last layoff in February, she started rethinking her options.

LORI LAWRENCE, MY PAMPERED POOCH: I started thinking, I'm tired of going through this. What would I really enjoy?

CANDIOTTI: Though her aging husky Cody is too old to need much grooming anymore, Cody inspired her to set her sights on opening a dog-grooming business in the upscale Atlanta suburb of Peachtree City. But money was tight. So she swallowed her pride and opened a fruit stand.

LAWRENCE: It is not doing anything like what I had hoped that it would do, but it's more money than I had last week.

CANDIOTTI: Fruit is only bringing in a few hundred dollars a week. Compared to that, dog grooming looks like a gold mine.

LAWRENCE: People spent $42 billion last year on their pets alone. You know, it's there. How do I -- how do I get in? I want in, you know?

CANDIOTTI: Lori attended a number of SBA seminars and Googled business plans of other startups, then drafted her own. Small business experts Danny Babb (ph) and John Rutledge (ph) offered to take a look.

DANNY BABB: She has a specific idea in her head. And about what this is going to look like and what the consumer is going to walk away with.

CANDIOTTI: John and Danny helped Lori reduce her startup costs from $147,000 to just $35,000. The showed her how to save money on labor and equipment. They suggested she look for free advice online instead of hiring an attorney and CPA. And they're helping her negotiate a better lease in the down-and-out commercial real estate market.

JOHN RUTLEDGE: In your plan, you have also things like pet sitting, dog taxi . . .

LAWRENCE: Uh-huh.

RUTLEDGE: Retail, a bakery, all those things, ways of adding more revenues on to just the basic wash your dog.

CANDIOTTI: For the time being, dog washing is all Lori offers, but she hopes to be providing the pampered pooches in her area a full range of services by the end of next month.

Susan Candiotti, CNN.

(END VIDEOTAPE)

HARRIS: And you can watch "Money & Main Street" every Thursday right here in the CNN NEWSROOM, and you can see even more "Money & Main Street" tonight at 8:00 Eastern on "Campbell Brown."

Well, the numbers are in, the housing market's as bad as you thought it was.

(COMMERCIAL BREAK)

HARRIS: Boy, some sobering statistics in the housing crisis. The real estate monitoring company, RealtyTrac, reporting a record 1.5 million homes hit by foreclosure filings in the first half of this year. That's 15 percent more than a year ago. We are talking default notices, auction sale notices and bank repossessions. A RealtyTrac spokesman says the numbers show efforts to stop the growing crisis are not working. New states, including Idaho and Illinois, are joining the top 10 foreclosure lists. Not good news at all.

CNN NEWSROOM continues right now with Kyra Phillips.