Co ordinated Manipulation of Students and Student Loan Debt

As I continue to explore the issues surrounding the student loan debt problem one can't turn a blind eye to systemic problems within the University structure itself.

                                Lets Face Facts:

1.Universities and colleges are big business. They generate income, employ people in various occupations: from professors to landscapers within the business itself. The entity itself wields tremendous political influence.

2.Major employer in many towns. Many are completely dependent on the revenue generated from the schools that obtain funds from student admission fees. The residents are very protective of this major employer since they have a vested interest in the continued success and expansion.

3.Private, independent business are also dependent upon them. Businesses establish a presence on the campus as well as encircle the campus. They are assured a steady source of customers during the traditional school year. Basically having a trapped consumer group. Schools continue to expand the summer school options, such as Maymester to extend the revenue generating activities.

4. Socially we are all invested since an educated work force is important. We all benefit.

                                               Problems

 Assumptions:

1. Right of passage. Why? Not everyone wants or has the aptitude to attend university.
   
2.Affordability. Not everyone can afford to attend immediately upon graduation. Maybe the students personally should have some savings and therefore some "skin in the game" before they start. They may then demand better service for their money! Professors who teach, and grade their papers and not relying on underpaid graduate students.

3. Students usually are required to live in residences for their first year and purchase pre determined meal plans. The usual argument is that this is the first time the student is on their own and it is a way to meet people. This coddled view hides the reality that there are students who simply cannot afford to live on campus. Some may continue to live at home, rent a less expensive apartment or commute.
Students will meet other students whether living on campus or not.

4.On-line programs deprive students of the campus experience. Rubbish. If it is the only affordable way for the student, then that is a valid way to obtain the education. Besides one can attend the campus part time and do on-line if they wish the campus experience.

5.Food and beverage outlets on campus. Why on Earth should expensive establishments be the only ones on campus immediately accessible to students? I do not want to point out specific ones, but if you are reading this you know who they are. This also contributes to the ever rising costs of attending school.

6.Grocery Stores bordering the campuses usually have inflated prices. Once again the trapped consumer. This penalizes students who do wish and need to be economical. They cannot afford the prices on the campus.

7.Tenure. We simply cannot afford life time tenure. Their needs to be a reasonable retirement age so that it frees up positions for new individuals with new ideas, energy, and enthusiasm. The retirement age might be higher than traditional industry and tenure is sometimes required to protect professors with controversial views but the system is becoming stagnant and too costly. It is becoming too top heavy.

These are some thoughts that I am certain will generate controversy.
I would like to add one more to the list...

When did the university experience turn into a country club experience? If you have not been, I encourage you to go visit a University sports facility, squash courts, tennis courts, soccer fields, swimming pools, athletic facilities, rock climbing walls ect.
I have the audacity to say...this is for recruitment purposes. These are very desirable activities and people do require exercise. Perhaps this could be a service provided by an independent business, because after all the upkeep does cost money and that money comes from the student tuition which comes ultimately from the taxpayer!

Future Student Loans...Where do we go from here?

Todays information from Democratic Candidate Hillary Clinton testing public sentiment about providing student loans interest rate free for future students enrolled in 4 year college and university programs is certainly interesting.

This issue is going to emerge as a powerful campaign issue for both parties and needs to be addressed. Her focus is just on the future student, young students who have witnessed the terrible situation that earlier students have found themselves in. Enormous debt that threatens an entire generation. This proposal just about guarantees that this block of voters will vote for this. Who wouldn't?

There are such extremes in viewpoint as evidenced by  Fiscal Times reporter Edward Morrissey, posted August 13, 2015.
"Big Leap in Faith that the students will Repay the Student Loans." if they are given interest rate free loans.
Please...............What makes anyone think that the students currently holding massive debt will repay.

Also his Question "Where will the money come from?" Where does it come from now?
Why are their interest rates so high. No credit rating?  How about we give our future educated students credit that they want to achieve. They are certainly worth more than a car.

As I have stated previously, there should be a low, reasonable interest rate with No compounding of interest while the student is enrolled in post secondary education. Then 6 months after graduation, as is the requirement now, students need to begin repayments.

What a student borrows should be a contract as to what they will repay. Interest starts at the 6 month point.
His use of aged statistical information from 2012 doesn't reflect how serious the problem is. Quoting figures from the Federal Reserve Bank in New York from the time period 2001-2012 is terrifying by itself...$120 Billion in Government Backed loans.

So only addressing future students is divisive in nature and guaranteed to fracture voter sentiment, pitting one group of youth against the other and then the third group, the taxpayers, questioning why they should foot the bill.

Since all of the Republican Presidential Candidates are too busy with the current Political Soap Opera, they are squandering valuable time necessary to formulate a comprehensive, realistic and rational strategy.

I realize there are so many distractions  but I suggest that attention be directed to this domestic issue,

Remember....We The People?

We need a strong leader who is prepared to lead. Someone thoughtful, credible  and realistic. And We The People need to be tolerant and understand that some unconventional ideas may need to be tried.

This is an issue that transcends race, religion, and immigration. We need to invest in our future!
Students will value this education and we will benefit from it.

Student Loan Crisis and Excellent Solution

Dear Future President,

 

I have been working on a potential idea that will mitigate the crisis we are heading towards with the Trillion plus $ Student Loan Debt.

It is unconventional, but I do believe that this is what is required to avert a financial emergency.

 

I have substantial credibility since I have 3 children encumbered with student loans. We were financially responsible and did not expect the government to finance our children's education. We elected to save monthly from the day they were born to finance higher education. We saved for their entire lives!

Never in our wildest dreams did we expect that educational costs would outstrip our resources resulting in our children requiring student loans. In our planning we assumed that post graduate costs would be assumed by the child but we would financially support the first 4 years. I do believe this was reasonable. 

 

I watched and listened to my children as the years went by and the student loan debt continued to mount. They worked part time during school and during the summer and still along with our savings had to take out student loans.

 

After much contemplation a plan did evolve. We offered our children the opportunity to return home, rent free on the condition that once a job was secured that monthly loan repayments would be at a minimum of 30%.

One agreed immediately, one declined but then seeing the success reversed her decision.

 

Not all graduating students have this opportunity, however this plan can be implemented on a higher social level.

 1. Families or any independent family unit offering rent free accommodations to assist students in repaying student loans receive some type of tax deduction, financial assistance.

There are increased costs due to electricity, water use , wi-fi ect.

This would encourage many to participate and help encourage and ensure that students will repay loans taken out for education purposes.

 

I have taken considerable time asking the 20 to 30 year old working employees how they were managing their student loan debt. We have a very serious problem! Since I posed no threat these individuals were so thrilled to have someone listen to them and discuss how to resolve the problem.

They are not able to earn high enough wages to rent apartments and are sharing with others. But as rents continue to trend upwards they are becoming desperate.

 

I explained what we had done. WOW! Just an amazing response. They all thought that it was more than fair and would gladly put 30% monthly towards the enormous debt. They do not want to be saddled with this debt for 10, 20 years.

 

From conversations there is an ominous sentiment that maybe for a couple of years they will make payments but without a real clear path on how to get control of this they feel disenfranchised.

 

We cannot and should not let a generation of children be lost. As leaders we need to lead. That will be your job...LEAD!

 

There cannot not nor should not be a free pass. The students must accept responsibility for the loans and repay the money so that it is available to others.  

 

2. Remove the compounding interest accruing while the student is in school. It is a disgrace, especially considering how low interest rates have been. When my spouse and I attended university no interest accrued. What we borrowed we owed. We started repaying and paid off a total of 8 years of loans within 3 years. We sacrificed, however it was fair! And we wanted to pay it back because it was fair! 

 

3. Education is much more valuable than a consumer purchase!It is a national disgrace that we can purchase a car for zero down and maybe 2-3% financing costs. or other items such as furniture. They wear out but education keeps giving. Educate a child, you are educating a future family. Why can't they have these wonderful loan rates? When reviewing my children's students loans there are different interest rates and it is a minefield.

 

PLEASE LISTEN TO THEM!!!!!

Respectfully Yours,

A Concerned Citizen Thinking Twice