Student Loans
The student loan program has mushroomed into a galling yoke to students and the economy. The average student owes just over $35,000 in student loans. It is not unusual for dental students to owe $500,000 in student loans and medical students to owe more than $300,000 in student loans. There are more than 44 million borrowers who collectively owe $1.58 trillion in student loan debt in the U.S. Student loan debt is now the second highest consumer debt category - behind only mortgage debt - and higher than both credit cards and auto loans. The default rate, loans that are more than 90 days in arrears is 11.4%
This crises cannot be solved overnight, however I propose the following:
1. All student loans should have a fixed interest token rate of 1%
2. Student loans for nursing, MD, social work, teaching programs should be interest free to attract people into these programs to lessen the severe shortage in these professions. Loans for these programs should be forgiven when individuals from these professions work in underprivileged areas.
3. Student loan debt should be allowed to be discharged in certain bankruptcy cases and in cases of disability
4. Loans that are more than 10 years delinquent should be placed in collection for the principal amount only, the interest should be eliminated to encourage repayment
5. Though many may take issue with the concept of loan forgiveness, it must be remebered that the student loan program has been one of the most predatory programs administered by the government upon its own citizens. Many students, though college educated, have not been able to secure employment sufficient to pay off their loans because of the excessive interest that the loan has accrued. The forgiveness of student loans out to begin with the poor, those who have been chronically unemployed and underemployed. Forgiveness of student loans for those in this category can easily be verified by income tax records.
6. Loan forgiveness is a necessity. It is past time that we stopped catering to the rich of this country and start taking care of thepoor. We can forgive nations around the world for their debt and bailout industries, it is now time to benefit the poor and unprivileged.
