Tags: education | debt | student loan

Educational Debts Weighing Us Down

Educational Debts Weighing Us Down

By Wednesday, 01 May 2019 04:13 PM Current | Bio | Archive

Democratic candidates no matter what they think will find the educational debt issue likely a no-win proposition with the ideas they are proposing. For those of us who paid our debt through service and then found our paychecks impounded to collect that same debt, a class action suit might be in order to recoup our salary misappropriations with interest through wage garnishments which were not verified.

Though estimates place the nations’ student educational debt at 1.75 trillion dollars, those over 60 account for 80 billion for their children and grandchildren. The numbers still struggling to repay these debts who are fast approaching 60 years of age, while stuck in jobs where their educational promise didn’t pan out, is tragic. This nation has sold education as an end in itself while neglecting the value of wealth producing trades as technicians, plumbers, HVAC, electricians, and carpenters. As more people refuse to make education directed at careers which pay a decent wage, an unfortunate fall-back position has evolved asking that fast food jobs and those designed to be temporary, pay disproportionate wages to what the markets reflect.

One of the hidden lies of Obamacare was an add-on tax from student loans before they completed their education with an additional tax when they sought jobs. Students were not meant to be exempted from carrying the burden of the sick. Additionally they were also hoped to be the salvation for the program in getting new younger workers to buy into this insurance. The government added to the problem by forcing students to pay higher rates such as 5-7.5% for government student loans while banks and other financial institutions could borrow at 0.7%.

Educational institutions have been allowed to milk the system by raising their tuition each time the federal amount which can be borrowed is raised. In addition, the cost of education for students has also risen beyond that which can be borrowed. Unfortunately this is coupled with the fact that 68% of students take 6 years to complete a course of student instead of the expected 4 years. The junior college and community college systems have been developed and like many higher educational programs have shown itself as a boondoggle for educators without having to show financial returns for students. There is no correlation of later income level with debt; however 42 billion of the debt is possessed by those making less than $50,000. Those who are likely to earn the most, such as doctors are also most likely to carry the most debt; therefore truly revitalizing debt forgiveness through service in areas of need might be desirable.

It is simplistic to just say forgive the student debts placing the burden on government to finance educational degrees — another move on the socialism ladder which may prove unproductive in a changing economy. This national educational debt total exceeds that for Medicare, Medicaid and other social programs designed for the needy. In draining indebted students for repayment, is another class of poverty being created?

Innovative ideas which many might be amicable include:

1. Drop the rate on the loans to that given to mortgage and financial institutions.

2. Freeze tuition to the level at entry for 4 years of study, as is done in a few institutions. (This might encourage some to finish in 4 years.)

3. Offer some sort of oversight to institutions which raise their tuition according to the amount of government loans.

4. Deny federal student assistance to those institutions having endowments of over $1 billion dollars and require that so much of that money be directed to its students in need if government loans are desired.

5. Of those in debt, who graduate with a 3.0/4.0 forgive, the federal debt (this should encourage scholarship).

6. Consider service whether in the military, teaching, health care in communities of need and nursing homes grounds for loan forgiveness. One year of forgiveness for each year of service up to $5000.

7. Allow the IRS to collect the loans automatically proportional to a debt at rate of no more than 10% of income.

8. Limit the total amount of debt which can be carried with government guarantees (unfortunately this would penalize those in the professions allowing the rich to continue in their domination of the playing fields.)

Ada M. Fisher, MD, MPH is a licensed teacher, retired Corporate physician, former county school board member, speaker, author of "Common Sense Conservative Prescriptions Good for What Ails Us Book 1" (available through Amazon. com) and is the NC Republican National Committeewoman. Contact through DrAdaMFisher.org. To read more of Dr. Fisher's reports, Click Here Now.

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Democratic candidates no matter what they think will find the educational debt issue likely a no-win proposition with the ideas they are proposing.
education, debt, student loan
Wednesday, 01 May 2019 04:13 PM
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