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Amy Hansen

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An Open Letter to the U.S. Government About Student Loan Debt

Posted: 03/28/2012 11:17 am

Dear President Obama and every Congressperson, Senator, and presidential candidate,

As I was indulging in my morning ritual of sipping a cup of coffee and reading the news, I came across an article that hit me with a wave of nausea faster than some of you swing a nine iron on the golf course. New research was released saying that the top 1 percent of student loan borrowers have loans of more than $150,000. Rep. Paul Ryan also launched a plan that will hit poor students the hardest by wanting to cut Pell Grants.

My relaxing coffee break quickly came to a halt, but I've had a lasting pit in my stomach ever since reading that article.

Immediately, I launched into panic mode. I racked my brain for options. Drop out of graduate school? Respond to the typo-ridden post looking for journalists in Latvia? Create a time machine to erase my decision to go to an out-of-state school and instead enroll in a community college (also known as 'the government's only plan of success')?

Obviously, I hold full responsibility for my loan debt. It was my decision to go to an out-of-state university, choose a notoriously low-paying job field, and enroll in the money pit known as grad school in one of the most expensive cities in the U.S. However, my ultimate goal was never to rack up debt as the years went by. My goal has always been to peruse something that I'm passionate about and set out to change the world. After all, isn't that what all of you preach as the American dream?

Statistically, one would think that I'd be in a better debt solution than my current state. I graduated both high school and college with honors, I come from a low-income single parent household, and I'm the first person in my family to go to college. Even with scholarships, my student loan debt has increased steadily. Instead of being a poster child for the American dream, I'm the face of someone who will be using my bingo winnings to make a student loan payment when I'm living in a senior citizen home.

The biggest crisis in America right now is the student loan debacle. Something needs to be done to help in alleviate the issue. It's crippling our citizens before they even get a chance to get out of the gate, limiting the possibilities and opportunities of this great country.

Or we can just follow Mitt Romney's plan, as he stated:

It would be popular for me to stand up and say I'm going to give you government money to pay for your college, but I'm not going to promise that ... Don't just go to one that has the highest price. Go to one that has a little lower price where you can get a good education. And hopefully you'll find that. And don't expect the government to forgive the debt that you take on.

Let's see where big plans like that take the country, Mr. Romney. And while you're at it, would you mind tacking my debt onto your tab? After all, being a multi-millionaire descending from a long line of millionaires, you won't notice another $100,000 onto your bill. That's just about the same price as one of Ann's Cadillacs.

Sincerely, your debt ridden friend,

Amy Hansen

 

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Dear President Obama and every Congressperson, Senator, and presidential candidate, As I was indulging in my morning ritual of sipping a cup of coffee and reading the news, I came across an article ...
Dear President Obama and every Congressperson, Senator, and presidential candidate, As I was indulging in my morning ritual of sipping a cup of coffee and reading the news, I came across an article ...
 
 
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02:15 AM on 05/04/2012
Nobody owes you anything. You took out those loans of your own free will in your quest to pursue the American dream. That was your choice, so stop dumping your sob story on everybody else. I had $60k of student debt and paid it off myself - and no, it wasn't easy. Nobody handed me any money. Nobody forgave my debt. And nobody should forgive yours, either.
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OLJW00
right is right
10:25 PM on 04/01/2012
Rep. Clarke claims the bill would make student loan payment both "simple" and "fair"... I agree with the former but not the latter.

If I'm a psych major who just graduated and I went to Harvard, I'd have $160,000 grand in debt. I get a job at Starbucks for 30 grand a year because i have no skills. I pay back 10% per year for 10 years, $30,000, and the remaining $130,000 is "forgiven".... so who is going to pay the remaining $130,000?...

Well, all the other taxpayers would have to pay for it... many of whom never went to college or decided not to... so in a sense many people who never went to college have to pay the bill for those who did go to college

Doesn't seem "fair" to me...."

Samwide Gamgee
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Michael Morrison
Proud Dad, Engineer, Aspring Geophysicist
01:32 PM on 03/30/2012
Hi Amy:

You can do anything you want, but you probably can't do everything you want. Sometimes you have to defer your dreams.

Here's my story.

30 years ago, I really, really wanted to major in Geology. I didn't have the money to attend the school of my dreams, so I did a 6 year stint in the military, and used the GI bill to attend college. My GI Bill funds were limited, so I attended a Junior College in my home state, and worked part-time and summer jobs.

Along the way, I changed my major to Engineering in order to receive a small scholarship that enabled me to attend USC and graduate without debt. Engineering wasn't my dream major, but it paid the bills, and allowed me support a wife and two daughters. I saved money, purchased a modest house, paid off the mortgage, and now, at the ripe-old age of 50 years, have returned to school to complete a Ph.D. in Geophysics...I'm paying for this out of my own pocket.

Finally, after 30+ years, I'm pursuing my dream. I suspect that the unsympathetic readers on this post have similar stories.
10:03 PM on 03/29/2012
The student loan "debacle" started when students decided to knowingly sign on the dotted line because they wanted what they wanted.
They did not choose to go to a less expensive local or community college.
They knowingly took on that debt and now they whine.
Sorry, nobody fooled you into debt.
You knowingly assumed that debt.
Now do the right thing and pay it back and stop demanding that somebody pay it for you.
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OLJW00
right is right
10:27 PM on 04/01/2012
And students certainly don't have to choose EXPENSIVE schools.
08:15 PM on 03/29/2012
I AGREE with Amy 100%!! I find myself in a parallel situation. I too take full responsibility for my actions but wish that Mitt would do the right thing and unburden me of this crushing debt. While its true that it was completely my decision to purchase the loaded Mercedes right after graduation from school but before I got a job. And I guess that I could have not gone for the optional heated massage seats and the high horsepower AMG option but, like Amy, it was something that I felt extremely passionate about and felt that it would help me change the world. I suppose I could have bought a Chevy Volt but felt that it would inhibit my aforesaid desire to make a difference in the world. I can't believe that Ann Romney would not sacrifice one of her many Cadillacs to help alleviate the crushing debt burden on Amy and my soon to be super greatest generation.
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OLJW00
right is right
10:31 PM on 04/01/2012
Did you or did you not take on the debt fully aware that debt is something you PAY BACK?

I assume that being smart enough TO GO TO COLLEGE implies you did.

Stop with the class warfare already.. Unless of course, you think that we should take students who work hard and get A's and give half their grades to others that don't work at hard and get F's so EVERYONE get's a C.

I mean, you wouldn't mind giving up your hard earned grades would you?
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blitznstitch
BAZINGA!!!
03:42 PM on 03/29/2012
Thanks federal gov't for giving me loans to go to school so that I have the chance to better my life. Thanks for the flexible payment plans and allowing me to defer and forebear. Thanks for the 20 or 25 life limit of the loan so long as I make faithful monthly payments. And Thanks for keeping the interest rate low for so long - but could you please NOT RAISE IT!!!!!
03:40 PM on 03/29/2012
I posted over 4 hours ago, are you folks home?
01:30 PM on 03/29/2012
Recently, legislation was introduced, responsibly addressing means to correct and rectify the issues people are having with repayment. It makes repayment 'simple and fair'. HR4170, introduced by Democratic Senator, Hansen Clarke of Michigan and developed with Robert Applebaum of 'Forgive Student Loan Debt', details the best way to provide help now, and also work toward prevention in the future. By making payments equal to 10% of your discretionary income for 10 years,remaining student loan balance would be forgiven, tax free. People in repayment would have all payments credited toward this amount,alleviating sometimes close to 20 years of repayment. It would lock interest rates at 3.4%, and allow current borrowers with private loans to swap their loans to private loans, and thus be entered into the 10/10 plan, and the existing Public Service Forgiveness plan of 10 years would be reduced to 5. It would also seek to cap what can be loaned in the future to $45,520, this would also be the cap on all future forgiven amounts to 'promote' responsible borrowing, and advise schools to be more competitive with tuition to attract future students. This would all occur with no impact to current funding and would be financed with savings from the Iraq and Afghanistan Overseas Contingency Operations and their projected savings. In addition, The Student Loan Borrowers Bill of Rights would seek to restore consumer protections on loans, and cover unaddressed issues that HR 4170 doesn't cover. More information can be found at www.forgivestudentloandebt.com
07:23 PM on 03/30/2012
Define "discretionary income."
Also, without resorting to references to non-hard dollar ephemeral benefits or other psycho babble, what is the total cost in dollars to taxpayers of this program? In other words what is the maximum aggregate amount of debt forgiveness including interest? Or don't you know!
11:37 AM on 03/29/2012
Ms. Hansen states that her $100,000 debt "is just about the same price as one of Ann's Cadillacs." You would think that a grad student like Amy would realize that a Cadillac, particularly the model that Ms Romney owns, costs nowhere near $100,000. But with the power to exaggerate numbers to the extent that Amy does, I see a great future for her in the left wing American press.
11:29 AM on 03/29/2012
I AGREE with Amy 100%!! I find myself in a parallel situation. I too take full responsibility for my actions but wish that Mitt would do the right thing and unburden me of this crushing debt. While its true that it was completely my decision to purchase the loaded Mercedes right after graduation from school but before I got a job. And I guess that I could have not gone for the optional heated massage seats and the high horsepower AMG option but, like Amy, it was something that I felt extremely passionate about and felt that it would help me change the world. I suppose I could have bought a Chevy Volt but felt that it would inhibit my aforesaid desire to make a difference in the world. I can't believe that Ann Romney would not sacrifice one of her many Cadillacs to help alleviate the crushing debt burden on Amy and my soon to be super greatest generation.
11:19 AM on 03/29/2012
I really don't have time for this but it's important, so please listen up...

While this particular article is a bit of a self-serving whine and does NOT clearly address the issue of current legislation regarding the student loan catastrophe, it IS still an important issue... The 1965 Higher Education Act was an extension, basically, of the the GI Bill. Almost immediately, the SL LOBBY began their melodrama about 'student loan bankruptcies' - which was patently a LIE - in order to get bankruptcy protections REMOVED from student loans.Subsequent melodramatics by the SL LOBBY also allowed SL LENDERS to rig the game against students AND taxpayers so that students AND taxpayers are now on the hook for ENORMOUSLY PREDATORILY INFLATED balances that essentially amount to life-long debt slavery. Student loans are singularly subject to a bastardized amalgamation of predatory commercial practices and 'social investment' good intentions to create a system from which there is literally no escape but death.

Student loan PAYMENTS are merely 'paying the vig' - they rarely hit the principle, thus the balance never goes down, and capitalized interest increases the principle, thus the vicious circle continues and the 'principle' balance grows ever larger. The system is RIGGED to EXTRACT PROFIT from students AND taxpayers - and because CONGRESS IS A WHOLELY OWNED subsidiary of the biggest banks and donors, they have, over 30 years, RETROACTIVELY changed the terms of the contracts and hooked MILLIONS of former and current students into a CASH COW for lenders.
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Michael Morrison
Proud Dad, Engineer, Aspring Geophysicist
01:41 PM on 03/30/2012
Dorothy: I wish that the lenders had some "skin in the game," and that they were able to predicate their loans on things like High School GPA and college major.

I suspect that there would be fewer journalism majors with no job prospects.
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lrobb
Gold Standard = four paws and a tail
10:11 AM on 03/29/2012
The author is getting no sympathy here. My daughter wanted to go to Duke University and was accepted. The costs would have been prohibitive, but she really, really wanted to go. I love her dearly and she is a brilliant girl, but my answer was a resounding NO.

I would not pay any of her expenses and I would not co-sign for a student loan.

We have a perfectly good community college and four year university in town. Two years at the former while living at home is affordable by almost any family. Two years at the latter while living at home, almost ditto. We paid for our child's higher education out of pocket.

She graduated cum laude with a degree in something she loved but would never make much money--hence why her father and I put our feet down as to where she went. She now has a job she loves using what she learned in school and can afford to live relatively well because she has no student debt.

Life demands trade offs. If my daughter had wanted to be a neurosurgeon instead of a double drama and history major, I could have justified Duke University. It is difficult to live a happy life when you are crushed by debt.
10:05 PM on 03/29/2012
I salute you and your daughter.
My son is doing something similar.
11:34 PM on 04/01/2012
This is the most logical and practical comment on this blog.
09:34 AM on 03/29/2012
I understand this. We sent our first child to an in-state university for an engineering degree. He is now saddled with 70,000. This is for a state university education people. Get real. The universities are price gouging our youth and they don't give a damn. There is no easy way to get a higher education and our country is going to suffer for it down the road as the next generation makes the tough choice to either drown themselves in major debt or forego a good college education. This is everyones problem as it will impact us all. Incidently our two younger children are doing some of their credits at a state community college and although it has good ratings, the classes are sub par.
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08:32 AM on 03/29/2012
It was my decision to go to an out-of-state university, choose a notoriously low-paying job field, and enroll in the money pit known as grad school in one of the most expensive cities in the U.S. **** Pretty much 'nuff said.
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lrobb
Gold Standard = four paws and a tail
10:12 AM on 03/29/2012
Now she wants the rest of us to bail her out. Just like the Auto manufacturers and banks.
07:24 PM on 03/30/2012
First of all, after reading this article, Ms. Hansen has neither stated nor implied that she would like us to bail her out of debt. I think Ms. Hansen has made an excellent point stating that something needs to be done to make college more affordable. What is the sense behind "requiring" a certain degree for a job field that will never pay you the salary needed to pay off the debt it took you to get there.

Currently, we as taxpayers are paying for 12.8 million people to be unemployed. Why does it make sense to pay for people to NOT work, when we could be putting that money towards helping people who WANT to work get the education they need to do so.

I went to a great university and had a full tuition scholarship. I will be paying taxes/university fees/room and board alone for the next 7 years. I graduated and now have a great job and salary. It doesn't matter where you choose to go; college is not affordable for the average middle class American.
DUSAA-1775
never moon a werewolf
08:30 AM on 03/29/2012
The author bravely says that she does not expect help with her college loan debt which she allowed with her eyes wide open. Of course she also says that some thing must be done to erase the college loan debts.... i guess if her debt were to be forgiven it would be OK with her.