Submitted By: Mike Spindell, Guest Blogger
One month before I was scheduled to begin my freshman year in College my mother died. My father had gone bankrupt in his automobile franchise the year before and was working as a car salesman. Money was tight, but I had won a full tuition scholarship under the New York State Regents Scholarship program. While tuition was not a problem, there would be other costs associated with College, such as books and various student fees. My father found out about New York State’s student loan program and signed me up for a low amount of money, with the understanding that he would repay it. Due to his business failure my father had no way to get credit in his own name. Ironically, one month before my sophomore year my father died. I was 18 years old and the only work I had ever done was as a “car jockey” at the dealership where my father worked. There was little money in my father’s estate and I soon had to start school. I upped my student loan to the maximum allowed so that I would have living expenses until I could get a job to support myself through my remaining college years. Within two months, still reeling from the effect of being orphaned, I had gotten a job as a Night Watchman in a municipal hospital and arranged my course schedule around it. I lived in a furnished room, with a bathroom in a common hall, but my life slowly began to normalize. Later I got a job as a Clerk/Delivery boy in a liquor store, working 35 hours a week after school and making $32.50 plus tips, using my own car. I managed to scrimp by with the aid of taking out the maximum available student loans each year. The loans under the program them were from a bank, guaranteed by New York State. After I graduated I got a job for $6,000 a year and tried to pull my financial head above water. Six months after graduation though, I was notified by the bank that my student loan was to start being repaid, at a fixed rate that to me was a hardship financially. I went to the bank to ask to restructure the deal so I would pay less each month and they refused. It turned out that the New York State Student Loan plan was set in such a way that if the borrower defaulted the State would pay the bank the full amount immediately and then go after the borrower. It was therefore in the bank’s interest to have the student default, since they would get their return much more quickly.
Flash to many years down the road and my two daughters going to college. I was forced to take out student loans for their education, but I made each of them the promise that I, not they, would pay it back. This was of course the result of my own experience and I considered it my duty. I paid off my oldest daughter’s debt and am now paying off my youngest daughter’s debt. On my fixed income this is difficult. Both of them are working with good jobs, however, I don’t want my children to go through what I went through and would prefer they are not burdened by the costs of their education. Incidentally, they both worked part time when they went through college, although in both instances I didn’t want them to have to do so and that is only a minor part of why I am so proud of them. Which leads me to what is going on today with the Federal Student Loan Program, which brings in a surplus of $184 billion for the Federal Government. Call me what you will, but I don’t think that government should be a profit making enterprise and I certainly believe that it is in all of our interests to educate our children. At least one Senator feels the same way. Continue reading “The Student Loan Problem” →
While President Obama continues to maintain that only he decides what constitutes a war and requires consultation (let alone a declaration) from Congress, there remains a modicum of democratic process in England. The Obama Administration was surprised to learn that British Prime Minister David Cameron could not simply plunge his nation into another military conflict and that Parliament did not want to blindly follow the United States into attacking Syria. They would like to wait for all of the facts to be established by the United Nations before deciding how to act. It is of course a ridiculous notion that was long ago discarded in this country. If that was the approach in the United States, we would never have been able to invade Iraq on false pretenses and spend hundreds of billions in a war that has cost us tens of thousands of dead and wounded service members. Indeed, such knowledge is steadfastly avoided by our own politicians. By simply giving Bush a blank approval, politicians like Hillary Clinton and John Kerry could later deny that they really approved of the Iraq war and insist that they were misled by Bush.
