Sunday, May 20, 2012

Student Loans: A Solution...L&C

This is a topic that OWS has bought to light and being an idea person, I have thought about at length. Frankly, I'm ambivalent about it. I know many students borrowed an excessive amount of money to which they bought cars, gadgets and the like while I did not. I worked almost full-time and although I really wanted to play football at this level, financially I could not. So, when I hear and read that it is not their fault and they cannot repay their debt, well, it was your decision. Live with it. That is my inner thinking, however there is more to the story. College bean counters realized what real estate agents already knew. If interest rates rise, homes values decrease in order to qualify more buyers. Conversely, if rates decline, prices rise. Well, interest rates have declined and tuition's have been raised. Kids, paid the higher costs, but the financial crisis caught them off guard and this is another dark side story to Wall Street's greed and sins.
is it something that we really care about or just mouth service? If we agree like the Adams, Jefferson, Franklin, and Madison who had hopes for an educated citizen. In their minds it was the only way for a Democratic system to work. Well, then, I have a suggestion. If it is just lip service which the status quo desires, we will continue to decline as a nation and society. We will not full fill the hopes and dreams of the enlightened founders, but the desire for greater riches of the elite founders who by the way control both political parties today.
FDIC For Student Loans
What? More government?! More debt! Get out of town! Give me a moment to explain. If we really want educated citizens, improve our economy and standard of living for all Americans, let me take a page out of our agricultural book, an application from the banking industry to produce a better system for student loans.
Do you realize that farmers have a system of insurance which covers crop failures? The government will pay a farmer the expected results of his crop if it fails for reasons like drought, the environment, etc. This protection serves not only the farmer, but the banker who lends to him. He knows he will be repaid for the loan. Now, stay with me. FDIC charges member banks a fee which protects the deposits which makes our banking system so strong. Check out the latest events in Greece, Spain and Italy and you can understand the importance of FDIC. What I'm suggesting is this: Eliminate all usury on student loans. These loans will be made at costs, however a fee on every loan will go into a fund that will repay the loan if the student defaults. The government will be on the tab to cover any shortfall. On the students end, if they claim bankruptcy, the government places a 1% lien on the students wages for life until the loan has been repaid. This idea offers fairness, responsibility and help in a field that means so much to our nation's future.
LIARS and CROOKS: This week we go north of the border. Quebec just passed a law that defines tyranny. Instead of addressing the complaints of OWS / Canada, they instituted a law that says any demonstration that has over 50 people, a permit must be granted or every demonstrator faces a fine of, get this, $5,000. It gets worse. If the demonstrator is found to be a union member, forget about it, because they lock you up and throw the key away. This is a classic example of small minded, bureaucratic people who wield unrestrained exercise of power, produces undue-severity of harshness. Over-turn this act or the violence it breeds is on your conscious if you have one.