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