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GM could be Driven into Bankruptcy as Early as Next Week; President Obama Signs Defense Tightening Legislation and Credit Card Legislation into Law; President Obama Delivers Commencement Address at U.S. Naval Academy; U.S. Soldier Steven Green Sentenced to Life in Prison for Killing Iraqi Family; Holiday Getaway, More People Traveling; How to Avoid Defaulting on Student Loans; Dad's Plea to Wife to Return Cancer-Stricken Son; Fuel Leak at 30,000 Feet

Aired May 22, 2009 - 09:00   ET

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

DON LEMON, CNN ANCHOR: Thank you guys.

What do you call a guy? I guess he'd be a panther? I don't know, I'm not sure. We're kicking off your unofficial start to summer. What you can expect on the roads, at the pumps and in your weather this Memorial Day weekend, we're going to tell you. Pakistani troops pressure offensive against the Taliban. We go into the Swat Valley where the fighting has been fierce.

A plane leaking fuel at 30 thousand feet. A passenger takes a picture and alerts the crew. Hello everyone, it is Friday, May 22nd. I'm Don Lemon, Heidi is off and you are in the CNN NEWSROOM.

First up, your cars, your loans, your credit cards, we begin this hour with the issue number one, of course that is the economy. Our Christine Romans is following GM as it comes to a crossroads of bankruptcy and restructuring. More people defaulting on college loans. There she is! Our Gerri Willis, she'll tell us how to get some of that loan forgiven.

President Obama in just a few minutes from now he's going to sign a credit card reform bill into law today. We'll look at what's in it for you. Will it help you? We have all of that covered.

We have just gotten notice from the White House that it's going to be just a few minutes before the president signs that bill. So if it happens we'll get you right to it.

But first up, here is what you need to know right now about General Motors.

Two administration officials tell CNN that the automaker is likely to be steered into bankruptcy next week, but those senior officials stress that the president has not made a final decision. GM has a June 1st government-imposed deadline to complete its restructuring or be forced into bankruptcy protection. So the clock is ticking down on that deadline for the automaker.

I want to bring in our Christine Romans now with more on our top story today.

Christine, at this point, is there any chance GM can survive without bankruptcy? Then a caveat, because we are waiting on the president, we may have to jump out of this in a little bit if he does come out. Answer the question, is there any way that they may come out of this restructuring?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Every person I talk to who studies this, who has been studying the situation, says it is less and less likely by the minute that GM will be able to avoid bankruptcy. The White House is steering toward that. The company has been preparing for a bankruptcy filing.

And the CEO of the company said in a conference call with reporters just last week it is probable that it will have to fix its problems under the protection of bankruptcy. At that time, he said it's not impossible they could do it outside of that, but a lot of people who are studying this say it gets less possible by the minute. Faces a June 1st deadline, it's quite likely, frankly, that a filing could come next week even before that deadline happens.

There has been a fresh injection of taxpayer money to the financing arm of GM, GMAC, which is now the financing arm of GM and Chrysler, trying to keep the money going for the dealers and for consumers to buy cars if they need them. GM has reached a deal with its union, more painful cuts for its labor unions but no deal yet with debt holders. Investors own as you know Don, about $27 billion in debt. Investors loaned money to this company, GM and there has not been a deal worked out yet about how they will be paid back - Don.

LEMON: You said $27 billion right, billion with a billion?

ROMANS: Oh, yes.

LEMON: So this really touches a lot of people.

ROMANS: It sure does, it does. It touches people who buy a car frankly, if you own a GM car, I want you to know that your warranties will be honored, the government has promised that. It affects people who work at GM. They are very concerned about more furloughs and plant closures. The dealers, we know that last week the company announced 1,100 dealers that will be closed. Their relationship with GM will be severed and there are more dealers who are set to learn their fate as well. This is something that ripples from GM to the suppliers to the dealers to the communities that they live in. This is a very, very big deal.

Think about this, Don. For 60 years, the economic prospects of this country were summarized like this. As goes GM, so goes the nation. GM is headed for bankruptcy, many say.

LEMON: Tell us today what is today's Romans numeral?

ROMANS: It has to do with all of this, 493,000. You know, this is the number of retirees of General Motors. Look at that Don, 493,000. They are in every state and they are all over the country. They are a lot of different ages. They have dependents, they're relying on their pension, they're relying on the future of GM and for many of them they're alarmed by what's happening here. They can't imagine that this company that was the building block of America's middle class for much of the last century is now something that is very likely to end up in a court proceeding under bankruptcy protection. It just kind of shows you how far this has come and how things can change quite frankly in the American auto industry.

LEMON: Christine Romans, thank you very much. Hey, have a great weekend.

ROMANS: You too.

LEMON: Getting a grip on skyrocketing credit card interest rates and fees, President Obama is focusing on that today when he signs into law a major credit card reform measure. Under the legislation, banks will not be able to increase rates on credit holders' existing balances until there's more than 60 days or more than 60 days on a payment. We're going to get to the White House in just a little bit as soon as he signs that. Over the limit charges will also be curtailed in this law. The new rules go into effect early next year.

A completely unrelated and controversial provision, including the measure will also allow people to carry loaded guns into national parks and wild life refuges. So we'll get to that as soon as the president -- the deals on the credit cards, the legislation, President Obama is signing a bill that is supposed to help tighten cost controls for new defense systems, it is called the Weapons System Acquisition Reform Act.

We want to get to the White House now and to the rose garden. There you see the president of the United States about to take this action as we just said.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Good morning, everybody.

Please have a seat.

Well, long before I took office, I argued that meeting our greatest challenges would require not only changing policies in Washington, but changing the way we do business in Washington. It would require reforming a culture where the influence of lobbyists too often trumps the will of the people, rethinking government so that it works as effectively and efficiently as possible, and renewing our sense of common purpose so that we can bring people together in common effort.

That's exactly what we've done this week. On Tuesday, we brought auto executives, labor unions, environmental groups, Democrats, and Republicans together to set a national fuel-efficiency standard for our cars and trucks for the first time in history. On Wednesday, I signed bipartisan legislation to help homeowners and to crack down on the predatory lenders who seek to take advantage of them. And later this afternoon, I'll sign bipartisan legislation that protects consumers from the unfair rate hikes and abusive fees levied by many credit card companies.

And this morning, I'm proud to join Democratic and Republican members of Congress for the signing of a bill that will eliminate some of the waste and inefficiency in our defense projects -- reforms that will better protect our nation, better protect our troops, and save taxpayers tens of billions of dollars.

Now, let me be clear: As Commander-in-Chief, I will do whatever it takes to defend the American people, which is why I've increased funding for the best military in the history of the world. We'll continue to make new investments in 21st century capabilities to meet new challenges. And we will always give our men and women in uniform the equipment and the support that they need to get the job done.

But I reject the notion that we have to waste billions of taxpayer dollars to keep this nation secure. When it comes to purchasing weapons systems and developing defense projects, the choice we face is between investments that are designed to keep the American people safe and those that are simply designed to make a defense company or a contractor rich.

Last year, the Government Accountability Office, or the GAO, looked into 95 major defense projects and found cost overruns that totaled $295 billion. Wasteful spending comes from exotic requirements, lack of oversight, and indefensible no-bid contracts that don't make our troops or our country any safer. To put this in perspective, these cost overruns would have paid our troops' salaries and provided benefits for their families for more than a year.

At a time when we're fighting two wars and facing a serious deficit, this is unexcusable and unconscionable. As Secretary Gates has said, one dollar of waste in our defense budget is a dollar we can't spend to support our troops, or prepare for future threats, or protect the American people. Well, it's finally time to end this waste and inefficiency.

Already, I've announced reform that will greatly reduce no-bid defense contracts and save the government billions of dollars. And Secretary Gates, working with our military leadership, has also proposed a courageous set of reforms in our defense budget that will target waste and strengthen our military for the future. In taking on this enormously difficult task, he's done a tremendous job, and I want to publicly commend Secretary Gates for that.

The bill I'm signing today, known as the Weapons System Acquisition Reforms Act, represents an important next step in this procurement reform process. It reforms a system where taxpayers are charged too much for weapons systems that too often arrive late - a system that suffers from spending on unproven technologies, outdated weapons, and a general lack of oversight.

The purpose of this law will be to limit cost overruns before they spiral out of control. It will strengthen oversight and accountability by appointing officials who will be charged with closely monitoring the weapons systems we're purchasing to ensure that costs are controlled. If the cost of certain defense projects continue to grow year after year, those projects will be closely reviewed, and if they don't provide the value we need, they will be terminated. This law will also enhance competition and end conflicts of interest in the weapons acquisitions process so that American taxpayers and the American military can get the best weapons at the lowest cost.

And this legislation is long overdue, and it's been a long time coming. But we're finally signing it into law because of the dedication and commitment of a few key members of Congress who've been fighting for years for this reform: Senators Carl Levin and John McCain; Representatives Ike Skelton, John McHugh, Rob Andrews, and Mike Conaway. I'm very proud of the extraordinary work that all these gentlemen have done who are standing behind me today. Senator McCain couldn't be here today because he's making sure he has a good seat to watch his son graduate from the Naval Academy in a few hours, and that's where I'm headed as soon as I catch my ride over here.

But I will tell you that defense procurement reform was one of the issues that John McCain and I discussed in our first meeting after the election. We pledged to work together to get it done, and today I'm extraordinarily proud to stand here and sign a bill that passed with unanimous support from both parties at every step of the way.

What all the gentlemen standing behind me, as well as Senator McCain, knows, what Secretary Gates knows, what all members of Congress who have worked on this legislation understand, is that we have no greater responsibility than to ensure that our men and women in uniform have everything they need to do their jobs. And every penny we waste on this effort because of no-bid contracts or cost overruns is not only an affront to American taxpayers, it's an affront to our military. And while we have a long way to go to end this waste once and for all, the legislation I'm about to sign is a very important step in creating a government that is more efficient, more accountable, and more responsible in keeping the public's trust.

So once again, I want to thank all these members of Congress who did extraordinary work, not only to pass the bill but to get it here on time. I'm proud of them. I'm proud of Congress for sending me this legislation. That's why I'm going to go sign it right now.

Thank you very much.

LEMON: On this Friday before people start celebrating Memorial Day, the president there, signing what is called the Weapons System Acquisition Reform Act. I'm going to tell you some of the key points, some of the major points of this bill.

It calls for greater oversight of defense technologies earlier in the process. There is also an increased ability to terminate programs that are no longer deemed cost-effective. Plus, the measure calls for increased oversight of conflicts of interest.

Not the only thing the president will be signing today. He's also going to be focusing a little bit later on, on signing into law a major credit card reform measure that will happen at 3:00 p.m. today and, of course, CNN will carry that live. Then a little bit later on in this broadcast, we're going to tell you what's in this credit card reform act for you as well.

There you see the president live in the Rose Garden just signing in that Weapons Acquisitions Reform bill.

All right, so it is a very busy day for the commander in chief even though it's a holiday we're celebrating here. He is heading for the U.S. naval academy this hour. President Obama is giving the commencement address and he'll praise graduates for their call to duty.

CNN's Dan Lothian is in Annapolis along with all of those cadets and the proud parents and relatives and everyone, of course.

It's always a joyous celebration any time there is a big graduation like that, Dan.

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: It really is.

You can see behind me really a sea of white here, 1,036 graduates. They just finished marching in here. This will be the third address by the president to a graduating class. Certainly not controversial, like the last one at Notre Dame where there were pro- life protesters. The abortion issue was front and center.

Here today, according to administration officials, the president again will be commending this class for their service, for putting their country over self and also administration officials say the president will then again reaffirm his commitment to technology and also to arms, investing in arms and technology and the men and women of the military in order to make them better prepared for taking on the challenges in the threats of the 21st century.

We tried to get a good number as to how many from this graduating class will be headed overseas to Afghanistan and Iraq. We're told by officials here at the school they could not provide that number, though they did tell us that most of the graduates would have to head to some kind of training before they would be activated. But they did point out that the surface warfare officers, but they couldn't give us a number but they said some of the surface warfare officers could be headed to the battlefield shortly.

A couple of interesting notes, the president will stick around to shake hands with the graduates, he'll also be here Don for the famous hat toss. And then secondly, Senator John McCain who competed with the president in the campaign will be here as well. One of his sons, Jack McCain, will be graduating. He is the fourth McCain to graduate from the naval academy. According to a family member, he will take a little time off and then he also wants to become a naval aviator - Don.

LEMON: All right, well best of luck to him and those other realities. A lot of those folks will be going, at least some of them to Afghanistan and Iraq. Our Dan Lothian in Annapolis, thank you very much for that.

It is Memorial Day weekend and that means a lot of people are hitting the road and getting a little R&R. AAA predicts nationally about 32 million people will travel over the holiday weekend, that's up 1.5 percent over last year. Most people, they say, will drive.

(WEATHER REPORT)

LEMON: Memorial Day weekend, typically kicks off the summer travel season, but this year, a new study indicates a lot of people are afraid to take time off their job to go on vacation. We'll talk about that right at the half hour.

Also, Taliban militants reportedly surrounded by Pakistani troops with nowhere to go. A live report on that crackdown.

(COMMERCIAL BREAK)

LEMON: Pakistan says it has trapped Taliban militants in two key areas of the northern Swat Valley. It is the latest military maneuver in a month-long crackdown on the Taliban.

CNN's Dan Rivers is live in the capital of Islamabad where he is going to tell us what's happening right now.

Hello Dan.

DAN RIVERS, CNN CORRESPONDENT: Hi there, Don.

Yes, this military operation is continuing in the Swat Valley. The army says they are continuing to push the Taliban back. They are continuing to succeed. They have been showing journalists today one supposed Taliban training camp that they uncovered and my colleague Ivan will be giving us details on that in the next couple of hours.

But in the meanwhile, the U.N. has come out and said that they need $540 million to help the estimated 1.7, almost 1.8 million people that have been forced out of this area, that have fled, that are now even living in huge refugee camps, or who have taken shelter with family and friends in other places.

So this is a massive exodus of people. They are talking about perhaps the biggest ever exodus of people since Pakistan petitioned. So a massive humanitarian crisis here in Pakistan and a huge aid effort being asked for by donor countries by the U.N.

LEMON: All right, thank you very much, CNN's Dan Rivers, live for us in the capital of Islamabad, we appreciate it.

Former private first class Steven Green has been spared the death penalty in the murder of four members of an Iraqi family but as our Deborah Feyerick reports, the jury decision was not unanimous.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (on camera): Former Private First Class Steven Green will not die for killing an Iraqi family. Though some of the jurors did vote in favor of the death penalty, the jury could not reach a unanimous decision. Meaning Green will get life in prison with no chance of parole.

(voice-over): When the sentence was read, Green, his feet were shackled in court for the first time since the trial began, appeared relieved. A small smile spread across his face. His family reacted to the sentence.

DOUG GREEN, STEVEN GREEN'S BROTHER: I was incredibly relieved. I'm glad that I'm glad that this was the choice out of two bad options this was as good as it gets.

FEYERICK: The case is considered by many to be the first war crimes trial of a U.S. soldier. Green was convicted by the same jury of raping and killing a 14-year-old Iraqi girl after first murdering her mom, dad and six year old sister in their home near the traffic checkpoint where Green was stationed.

(on camera): The Iraqi family, if there is any message for those folks, what is it?

GREEN: Our hearts and prayers are with you and we're sorry... and we're sorry.

FEYERICK (voice-over): In a statement, his lawyers say, quote, "It is a tragic case on so many levels. At the end of the day, we truly hope the U.S. military will take a hard look at the resources they provide our service members dealing with combat stress issues."

(on camera): In Iraq, there have been calls for Green's execution. Justice Department officials in Washington fought to pursue the death penalty rather than allow Green to plead guilty to the charges he was convicted of. Green was tried in a civilian court because he had been honorably discharged from the military before the crimes came to light.

Deborah Feyerick, CNN, Paducah, Kentucky.

(END VIDEOTAPE)

LEMON: All right Deborah.

Millions of credit card users getting a huge break on fees and interest rates. Find out when the savings will show up on your statement.

(COMMERCIAL BREAK)

LEMON: Hello, everyone. I hope you're getting ready to have a fantastic Memorial Day weekend.

We want to talk about Wall Street now because on Wall Street today, talk of GM, a bankruptcy there, a filing is getting louder and louder. A major auto lender is getting a billion dollar bailout and another bank has collapsed.

Our Stephanie Elam is at the New York Stock Exchange with a look at how stocks are set to open. Hello there, Stephanie.

As we get ready for the opening bell, you've got all of that we talked about, the bailout, we talked about GM and also gas prices are going up on this Memorial Day weekend from $1.88, $2.01 to $2.22 and now...

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: That's true.

LEMON: ... $2.36. What is going on?

ELAM: That's kind of normal, though, for gas prices. You know, they normally go up as we get into the summer months. This is something normal that we see.

People are pretty much saying that this may be a good time for the economy to see gas prices going up, oil prices, because it shows that overall the economy may have some strength in it. But don't expect it to spike up like it did last year. So I guess that is the encouraging bit of news there.

But we are going into a long holiday weekend. We will not be open on Monday but we are looking for a higher open today. Investors found some room for optimism after banks reduced borrowing from the Federal Reserve's emergency loan program over the past week.

Taking a look at what is going on here now. We also have a litany of bad news that we have to take a look at as well. This comes as the auto and mortgage lender GMAC gets a $7.5 billion bailout from the government, that's on top of the nearly $6 billion that the company received last year.

There is the opening bell as you can hear there, a lot of excitement. I think the traders are ready for the weekend Don, if you can hear the -- it's a little extra pep in their step today when they're cheering.

But also I want to tell you a bit about the bank in Florida, BankUnited, it collapsed and it will be acquired by a group of private equity investors. It's actually the 34th bank that we've seen to fail this year and it's the biggest one of all. But people who have their money at this bank, they should really know that their money is safe, they don't have to worry about that but they definitely need to talk to the bank and find out the status of everything there.

There's also some changes at the top in the financial sector. We've got AIG, the chief there, Edward Liddy. He will step down once the company board finds a replacement for him. He's been faced with a lot of criticism. That's because the company took more than $180 billion in bailout money, but then on top of it, they also had those bonuses of about $165 million that they paid out. So that upset a few people there.

And also, other news today. It's a big deal for going into a holiday weekend with that a lot going on. But Xerox, the CEO, Anne Mulcahy. She is stepping down. She's really credited for bringing Xerox back from the brink of bankruptcy. She's going to pass this torch now on to Ursula Burns. She will become the first black woman to head up a Fortune 500 company.

Let's check out the numbers. Don, one thing I can promise you, volume is going to be light. A lot of people already taking off to get a start on holidays. You know, fire up the grill. You know, head to the beach. All that good stuff.

LEMON: Funny, you should mention the grill. Because McCormick and company, that's who did the opening bell. Ten years of trading, and beginning of grilling season. This is the beginning of grilling season.

ELAM: Yes.

LEMON: So apropos that they're going to do the opening bell.

ELAM: They love this time. They pass out all sorts of spices here to the traders. So they are trying to get everyone kicking it up this weekend.

LEMON: All right. Enjoy your barbecue.

ELAM: Thank you.

Barbecue, exactly.

LEMON: Your barbecue.

Thank you very much, Stephanie.

Always great to see you. Have a great weekend.

ELAM: Good to see you, too, Don. Bye.

LEMON: Getting a grip on skyrocketing credit card, interest rates and fees. President Obama is focusing on that today when he signs into law a major credit card reform measure. Now, under that legislation, banks will not be able to increase interest rates on credit card or card holders existing balances until they are more than 60 days late on a payment. Over-the-limit fees and late charges will also be curtailed. The new rules go into effect early next year.

A completely unrelated and controversial provision included in the measure will allow people to carry loaded guns into national parks and wildlife refuges.

Well, we want to know what you think about these new credit card rules. What do you think about these new credit card rules?

Please weigh in on our blog. Logon to cnn.com/newsroom, then click on the lovely and talented Heidi Collins. You'll see her name and her face right there. Click on it. There you go. Just like that, and it will come up.

We want to know from you. We like your feedback. Looking in on the U.S. Naval Academy in Annapolis. President Obama set to deliver the commencement address there in just about an hour. One of the graduates, Jack McCain, son of Senator John McCain.

We'll bring you the president's speech, live, right here on CNN.

(COMMERCIAL BREAK)

Well, of course, it is a Memorial Day weekend. And a lot of people are hitting the road for a weekend get-away. AAA predicts nationally about 32 million people will travel over the holiday weekend. Most of them will drive. That's up 1.5 percent over last year.

Well, this weekend usually kicks off the summer vacation season, but this year in these tough times, some people are saying they are scared to take a vacation, afraid they may lose their jobs.

Here to talk about that is Jason Lovelace of CareerBuilder.com.

Jason, hello to you. Tell us about the survey, and how it compares to last year, will you?

JASON LOVELACE, CAREERBUILDER.COM: Good morning, Don. Glad to be back.

Yes. Career Builder conducted a survey of workers determining how many workers planned on going on a vacation this year. This is an annual survey that we typically do. And the surprising fact was 35 percent of workers said that they did not plan on going on a vacation this year. And that was up from 22 percent last year. So that was a big take-away from the survey.

LEMON: Why are so many people staying home?

LOVELACE: I think it's a couple of key reasons. Number one, 71 percent of the survey participants said that they could not afford a vacation this year. And, obviously, that's a direct correlation to the economic conditions that we're faced with today. But, moreover, one in five had a little bit of fear or anxiety that if they left the office and that they weren't there, they might lose their job.

LEMON: Yes. So it's a combination. So either they are not taking a vacation or if they do take a couple of days off, they stay close to home and then they work on things so they can be close to the job in case something happens.

So, you know, what can you do about this? Are there some things you can do to feel better about your job, about your job security when you travel?

LOVELACE: Yes. No question about it. I mean, I think the first thing to remember is that we need a vacation. It's an opportunity for us to recharge. So when people believe that they shouldn't take a vacation, that's a false sense of reality. They really do need to take a vacation and get out there, enjoy themselves. But there are a couple of things that we can do. The first thing is preparation. If you're going to plan a vacation, obviously, you want to prepare at home, but you also want to prepare at the office. Make sure that you're checking with your supervisor or your coworkers. Leaving important phone numbers with them in case there is a project that you're working on.

The second thing that you want to do is leave a plan. And that plan should include everything from, like I said, the different projects that you're working on, to any assignments that you're on, important phone numbers, contacts, anything when you're gone that might need your attention, they are able to step in and pick up for you.

The third thing...

LEMON: Stick to a schedule, right? Is that what you said the third thing is? Why do you mean by that?

LOVELACE: Yes. That was I was going to say. The third thing -- sticking to a schedule.

Now, we're going to take a vacation. If you need to take a vacation or you are planning on taking a vacation, when you're on a vacation, give yourself maybe an hour a day where you're connecting with the office, but plan that ahead so that you're not constantly on your phone, your BlackBerry, you're on your computer, but have a set time where you can communicate back to the office and make sure you're giving updates.

LEMON: You know, I was just going to say that -- I was just going to say that, because, you know, it is -- you know with this new technology and BlackBerrys and all of that, everyone is connected at every second. So when you go on vacation, I guess you need to really change your mindset, because the moment you pick up that BlackBerry and phone, you're back in work mode no matter where you are. If you're on a beach, or yacht or wherever it may be.

LOVELACE: That's true. They call it E leashes today. And I think the survey also said that 28 percent of people that plan to take vacations will connect with the office at least once a day.

LEMON: All right. Thank you very much. We appreciate it.

Mr. Jason Lovelace, CareerBuilder.com. Some good advice there. The best thing to do, just take your vacation, relax, it will be there when you get back, sir.

Have a great weekend.

LOVELACE: You the same. Thank you.

LEMON: All right. Thank you very much.

You know what? Our Rob Marciano is going to join us now.

Speaking of going away and taking a vacation -- Rob, are you going to enjoy the holiday weekend, I hope? Doing something fun?

ROB MARCIANO, AMS METEOROLOGIST: Yes. I'm taking a little road trip. I know where you're going. You're going south, road trip...

LEMON: Yes. And the weather is terrible.

(CROSSTALK)

MARCIANO: Well, listen, I'm going east where it should be a little bit better.

Never been to Charleston. I'm going to head to Charleston.

LEMON: Very happy for you.

MARCIANO: Well, five-hour jaunt. And if you live in Atlanta, you have to drive five hours if you want to get to the ocean for a big plan locked here.

(WEATHER REPORT)

LEMON: I see the country like that all the time when I fly. So I don't know. What's different about that? Isn't how it looks from the sky?

MARCIANO: Yes. Listen, Memorial Day weekend, 4th of July, Veterans' Day, we try to throw up a little red, white and blue -- happy -- well, not happy birthday, but to remember our troops and those who have served and sacrificed for our country this week. LEMON: A lot of people spend a long time on the beach.

You got a favorite beach?

MARCIANO: You know, Jones Beach. It's a nice one if you live in the northeast. Anywhere in the Caribbean, I'll take any day of the week for sure.

LEMON: And the Panhandle. I think it's one of the most beautiful beaches in my world.

MARCIANO: White sand.

LEMON: That's right.

MARCIANO: Just be careful with the sharks, Don.

LEMON: Yes. Thank you.

And that's why I ask about this, because it's next story.

Pay attention.

MARCIANO: All right.

LEMON: All right. The annual list of best beaches is out this morning. And guess what it is, Rob? Hawaii! MARCIANO: Oh no, come on. Hawaii beach is so overrated.

LEMON: Oh, come one, they've got something to crow about. Topping the list is Hanalei Beach on the island of Kauai.

MARCIANO: All right. Well...

LEMON: Very nice. Very nice

MARCIANO: Well, look at Sarasota. Everybody can get there.

LEMON: Yes. That's right. But let me tell you, this beach in Kauai, right?

MARCIANO: Yes.

LEMON: That's where they filmed the movie "South Pacific." And some scenes of "Raiders of the Lost Arc." So Hanalei was number two on the list last year, now it's at the top.

(CROSSTALK)

OK, so you mentioned Sarasota, right? This year's number two is Siesta Beach in Sarasota.

You've been there?

MARCIANO: I've driven through that area, but anywhere there and Bonita Bay and across the bay towards Pinellas County, all of those beaches are amazing.

LEMON: Yes. Coopers Beach. Southampton -- south in the Hamptons, number three.

MARCIANO: Very Tony. Very chic, chic.

LEMON: I love the Hamptons. Very nice.

I'll see you there. We'll rent a house. And, you know, (INAUDIBLE) Hamptons.

Thank you, Rob.

MARCIANO: See you later, man.

LEMON: Just out of school and deep in debt. How to avoid defaulting on those massive student loans. We've got some tips for you.

(COMMERCIAL BREAK)

LEMON: Hats off absolutely to the class of 2009. Now for the bad news for you guys. Many of you are deep in student loan debt. So what can do you about it?

Hi there, Gerri Willis, our personal finance editor. GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey, good morning.

Hi, Don.

LEMON: She is here with some answers for us. So, Gerri, what can you do if you can't make your student loan payment? A lot of people are facing that reality right now.

WILLIS: Well, a lot of people are. Let's take a look at some of the student loan default rates, Don. In 2003, 4.5 percent of the students defaulted on their loans, but according to the latest stats from the Department of Education, almost seven percent are defaulting now.

Now, look. If you're afraid you may not be able to make your federal loan payments, talk to your lender first. That's job number one. There are programs out there that can help you.

Let's take a look at some of those options out there. Forbearance, deferment. Look, in both of these cases, you can stop making payments for a little while. The debt doesn't go away, and interest does continue to accrue.

Now there are also repayment options available. If you're looking for more permanent solutions to big time student debt. Go to FinAid.org for more info - Don.

LEMON: All right. So, Gerri, what about loan forgiveness? What about loan forgiveness? They do that for students?

WILLIS: You bet. You know, as you know, student loans never go away. So if you can get some kind of loan forgiveness, you're really putting yourself on the fast track to paying down payments. And Uncle Sam will forgive some of your loans if you volunteer -- saying the Peace Corp or Ameri Corp.

Even loans from law school or med school can be partially forgiven. For information on loan repayment systems for law school, go to the American Bar Association at Abanet.org.

And for more info on loan repayment for medical school students, go to the America Association of Medical Colleges at aamc.org - Don.

LEMON: Good advice. Gerri Willis, thank you very much, and have a great weekend, OK.

WILLIS: You, too. My pleasure. Thank you, Don.

LEMON: All right. A plane leaking fuel at 30,000 feet. A passenger takes the pictures and alerts the crew.

(COMMERCIAL BREAK)

LEMON: Cooler temperatures are helping firefighters in Michigan gain the upper hand on destructive wildfires. The fires are burning in Michigan's Upper Peninsula in Market County. Nearly three dozen homes and other buildings have burned so far. The fires have charred more than 1,500 acres. Evacuation orders are being lifted with the biggest fire now 75 percent contained.

The father of a 13-year-old boy with cancer now appealing to his wife to bring him back. The mother and son left their Minnesota home four days ago to keep him from undergoing chemotherapy. And CNN's Jason Carroll has the very latest for us.

JASON CARROLL, CNN NATIONAL CORRESPONDENT: Well, Don. Daniel Hauser's second round of chemotherapy treatments were scheduled to begin in March. That's why there's such a sense of urgency here. Daniel Hauser and his mother Colleen, still on the run, and his father is hoping wherever they may be, they can hear his message and listen to what he has to tell them.

(BEGIN VIDEO CLIP)

ANTHONY HAUSER, DANIEL HAUSER'S FATHER: Please bring Danny home so that we can decide as a family what Danny's treatments should be. I know you're scared. And I feel that you left out of fear, maybe without thinking it all the way through. We sure can't do the best for Danny with both of you on the run, so please give me a call.

(END VIDEO CLIP)

CARROLL: Authorities believe his wife and son may be in the Los Angeles area trying to head to Mexico. The last known contact anyone had with Daniel or his mother was Monday. At the press conference, authorities promised Colleen Hauser leniency if she turns herself in.

(BEGIN VIDEO CLIP)

SHERIFF RICH HOFFMANN, BROWN CO., SHERIFF'S DEPT.: If you call and make arrangements to return, please be assured that we will not take any enforcement action if you have shown good faith and effort to come back.

(END VIDEO CLIP)

CARROLL: The doctors diagnosed Hauser with Hodgkin's lymphoma this past January and began chemotherapy treatment. The cancer did initially respond to treatments, but cause side effects, prompting his parents to refuse more chemo saying they wanted to pursue natural forms of treatment.

The Hausers are Roman Catholic, but also believe in natural Native American healing methods. Hauser's father says he still supports the family's decision to seek other alternative forms of medicine and wants what's best for his son and that, he says, is for him to come home.

The doctor, who initially treated Daniel says without further treatment very soon, his odds of survival could plummet to about 5 percent.

And Don, that doctor also says with treatment his chances of survival would be anymore from 80 percent to 95 percent - Don.

LEMON: All right -- Jason Carroll. Thank you very much for that, Jason. We have a lot going on this morning, and CNN crews are working to bring it all to you. Let's check in beginning with our Christine Romans. She's in New York

Hi, Christine.

ROMANS: Hi, there, Don.

You know, for decades it was said as goes GM, so goes the nation. And now -- well, now the clock is ticking on a potential GM bankruptcy filing. I'm going to tell you at the top of the hour what it means for your job, your car, and for America's economic future.

MARCIANO: And I'm Rob Marciano in the CNN Severe Weather Center. Rough weather in Florida again has scrubbed the shuttle landing for today. Will it be a repeat for tomorrow? What about your Memorial Day weekend plans? Weather is coming up in the next hour.

ELAM: I'm Stephanie Elam at the New York Stock Exchange, where an early rally has faded and a major Florida savings and loan has collapsed. It's the biggest bank failure of the year.

Don, we'll have more on that at the top of the hour.

LEMON: All right. Thanks very much to all of you.

And it's an election day that is spelling changing times for a small Mississippi town still struggling with a violent and racist legacy. We'll hear from the new mayor of Philadelphia.

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LEMON: We've got some amazing video to show you of a plane in trouble. It was all captured by an alert passenger who feared his fellow travelers could be in grave danger.

CNN's Brian Todd has more.

(BEGIN VIDEOTAPE)

BRAIN TODD, CNN CORRESPONDENT (voice-over): You're looking at a serious problem at 30,000 feet -- jet fuel spraying out the wing of a huge passenger jet. Not a standard fuel dump, this is a big leak.

It happened on a flight from Chicago to Tokyo last month, more than 300 people on board. A concerned passenger named Bartek Bachleda took this video and took action, first trying to alert a flight attendant.

BARTEK BACHLEDA, PASSENGER: When I initially hit the call button, she thought maybe I wanted something and she said, sir, we're handing out drinks, I'll be right back with you.

TODD: He waited, realized this wasn't going to stop on its own and got her attention again. This time, he says...

BACHLEDA: She took me very seriously. She listened to what I had to say. She took the camera and she proceeded to go up front. And within minutes, I believe -- I think the first officer or the captain came down.

TODD: After the pilot surveyed the leak, he made a left turn somewhere over either the north central U.S. or Canada and headed for San Francisco, where the plane landed safely.

Bachleda calculated they were losing about 6,000 pounds of fuel an hour.

BACHLEDA: I decided to, like, you know, hey, if the captain does not notice before we go oceanic, meaning once we fly over the ocean, they will -- leaking and losing that amount of fuel, this is going to be a bad day.

TODD: How did he know all this? Bartek Bachleda happens to be an Air Force staff sergeant stationed at Kadena Air Base in Japan. He also happens to be a refueling specialist.

Bachleda was reluctant to name the airline in question, but we were able to independently verify that it was a United Airlines flight. Contacted by CNN, a United spokesman issued a statement saying, "Our captain was aware of the situation."

Brain Todd, CNN, Washington.

(END VIDEOTAPE)