11-4-2011
By: Dr. Ada M. Fisher
President Obama and Congress’s move to decrease the
length of time students are obligated to repay federal financial aid thereby
actually decreasing their amount owed is wrong! As one who
borrowed over $50,000 to go to medical school with the caveat of repayment by
service which I did, I was distraught to find $9,000 per month deducted from my
paychecks at Amoco to repay the loans long after I had fulfilled my service
requirements. When I protested and showed proof, I was told that
in the fine print was a clause that says such would exist only if congress
appropriated the monies for repayment, which it hadn’t. Before we
forgive other loans, I’d like my more than $30,000 double payment
returned.
Another creeping future economic bubble is this nation’s
student loan burden of between 1 to 1.5 trillion dollars. This is
more than the entire citizen credit card debt. The Obama plan
(which just speeds up that approved by Congress for 2014) encourages students to
go into degree programs for which they are not likely to make enough money to
repay these loans; pay only 10% of their after tax dollars for no more than 20
years on these accounts meaning they are likely to pay back less than 20% of
their indebtedness; and does nothing to demand higher educational financing
overhauls at the state level. Such foolhardiness automatically
adds this educational loan cost of one plus trillion dollars to the already
significant national debt.
We are fast moving to a time when no one wants to be
responsible for anything while increasingly wanting the government to bail out
everyone for everything.
The government must stop increasing the amount of Pell
Grants and loans available if colleges are raising their tuition and costs to
match this amount. The government should get out of the student
loan business and return it to the banks, which despite their often tarnished
reputations of late are more likely to be tough on borrowing and repayment of
monies. This would likely restore the 35,000 jobs lost when this
was removed under ObamaCare to help finance that legislation.
Doing such also removes colleges from their role of financial aid middle
man which could possibly make them sureties or guarantors since in their
selection of students who default, they might be required to back monies not
repaid. The government should require full payment of all
obligations and debts by those taking out the loans for we cannot afford to do
differently.
Students and parents need to ask what value they are
getting for the educational dollars being spent. As more are
questioning the value of their degrees, $28,000 is the average annual college
cost in private institutions. Per the American Council of Trustees
and Alumni, curriculums at public, military and Historically Black Colleges and
Universities are more likely to be more substantial than those found
elsewhere. “Crip” courses and majors in sociology, criminal
justice and general studies often allow graduates to obtain a degree without the
rigor found in those majoring in science, mathematics and other liberal arts
such as English or a foreign language.
New
York
State has found
that only 25% of its students are ready for college; yet, this presidential
administration has made college the end point. Too many students
are headed to graduate school and more debt simply because they can’t find a
job. Few seem willing to question the validity of college as a
goal when more than 30% of students drop out of high
school.
The present student loan forgiveness scheme should be
rescinded. This political ploy to mollify students may buy some
votes, but won’t solve a jobs problem. Student responsibility for
debts incurred is a must as should be a demand for academic progress toward a
meaningful degree. No student with less than a 2.0 on a 4.0 scale
should be eligible for any federal financial assistance and no student with less
than a 2.5 should receive a Pell Grant. Why not forgive debts for
those students borrowing for their education maintaining a 3.0/4.0 or graduating
with honors? This performance requirement is measurable and puts
the responsibility on the student to qualify for financial aid.
This also gives us students who will study to avoid debts rather than
float unfocused through college in the nebula of economic
uncertainty.
