Thursday, August 13, 2015

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.

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