Jul. 1, 2019

Student Loans

In recent news, especially since the Democratic debates, the subject of student loans has been coming up. What is a student loan? Well, as you may well have guessed, if not experienced, its the loans we take out during college to help pay for our tuition and fees while we study. The college and banking systems are truly taking advantage of our financial needs.

According to Forbes Magazine, at the present time, America is 1.5trillion dollars in debt with student loans. “Its the second highest debt behind mortgage loans and higher than credit cards and auto loans.”

It doesn’t look like its going to get any better, either. The interest rates alone force us to continue paying on these loans for most of our lives. I know people on the edge of retirement who are still paying off their student loans from when they were in college.

Senator Bernie Sanders wants to, “wipe out our student loan debt.” But at what costs? He’s certainly not going to pay for anything so, it will be left as another burden on Mr. and Mrs. Taxpayer’s back. In order to accommodate such a feat, our taxes will go up forcing taxpayers to give up even more of their hard earned money to pay for all of this “free tuition and student loans.”

Christian Barnard, a man who put himself through collage by being a janitor, used student loans. He writes that although Sander’s proposal of student loan forgiveness sounds good, it doesn’t help the lower-class. In fact, it will help the wealthy, instead.

“More fundamentally, Sanders’ proposal doesn’t even address the underlying reason why tuition has gotten so expensive, and he could make the problem even worse. Research suggests that past increases in the amount of federal aid to universities have simply caused them to raise their tuition rates, sometimes by as high as65 cents for every additional federal dollar. If taxpayers foot all of the tuition bill, as Sanders wants, colleges will have reason to inflate tuition even more. This won’t be felt immediately by students, but it’ll hurt them eventually when they graduate and become everyday taxpayers.”

I propose a median. Most student loans do not require anyone to initiate their first payment for the first six months after graduation – that is a good feature to have. It allows the new graduate to become gainfully employed and earn a wage before the burden of payment begins.

However, instead of paying for the rest of our lives, we could apply a lower fixed interest rate of 3-5%, and make payments like a personal loan. This forces the institutions and universities to take some responsibility, the bank still makes their money back, plus interest, and the student will see a light at the end of their tunnel.

Explicitly, when we borrow X-amount of dollars like several long term college courses require, set the loan up for X-amount of interest rates for 15 – 20 years enabling the graduate to eventually pay it off at a lower cost and enjoy the fruits of their labor.

As the Real People’s Candidate, I will not vote for student loans to be excused. That will only hurt the taxpayer in the long run; it will hurt America. Instead, I strongly propose we treat this like a personal loan and give reasonable interest rates, yearly term limits, and with an end in sight. After all, a student loan is, in fact, a personal loan anyway.

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