All attempts so far to create economic policies to stimulate the economy have failed. The economic stimulus act of 2008 proved to be a partial success or absolute failure depending on whose opinion you agree with. Regardless of how this act affected banks like Goldman Sachs and Bank of America, the American people only noticed their economic standings continue to spiral downward.
It's time to try something new. In reviewing the Tumblr blog for We Are The 99% there are a few themes that appear. People feel that they are mostly hurting because of the lack of job opportunities, the low wages of being underemployed, rising food costs, unaffordable health care and trying to pay off student loans.
What would happen if criteria was created by which Federal student loan debts could be forgiven in a fashion similar to how we have forgiven the debts of Third World Countries? As of June 2010, Americans owed $826.5 billion in student loans. This was the magic number that put student loan debt at the top of the debt mountain with the distinction of surpassing American credit card debt.
Most of the people I know with student loans do not expect to be able to pay them off in less than 30 years. Some of them do not know if they will be able to pay off their student loan debt in their lifetime.
Compound interest has many adults owing more than twice the amount they started with upon graduation. Not to mention the scores of people who have declared bankruptcy to eliminate debt and get a fresh start only to find that student loans cannot be included in bankruptcy claims, even if that debt is higher than all of your other debts.
If Federal student loan debt was forgiven to every American citizen wouldn't the economy be stimulated?
While the Occupy Wall Street movement continues to grow and spread, there is no common call to action. I propose that the first call to action be to help ease the economic stress of Americans is to forgive student loan debt. What do you say?
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Robert Scheer: Let Them Eat Keller
thx
shelley
It would give 16,250,000 people(650 billion / 40k) $316 per month extra in their wallet. (40k @7.25% for 20 years is $316/mn).
So what kind of effect would this have.
Well the banks would get 650 billion to start loaning to businesses.
AND 16,250,000 PEOPLE WOULD HAVE AN EXTRA $316 PER MONTH or this translate into
$5,135,000,000 PER MONTH BEING PUMPED BACK INTO THE ECONOMY TO SUPPORT THOSE BUSINESSES THAT ARE GETTING THE LOANS FROM THE BANKS. WIN WIN ?????
I honestly have very little idea of how these things work in America, but the way I'd deal with the problem in the UK, is that I'd cancel tuition fees but leave the accrued costs of studying. However, I'd do this AFTER the student has graduated, and ONE YEAR after they graduated. This gives them time to "find a job" (I don't quite like the expression LOL). And I'd also enforce a savings plan on each and every young person who starts working. Not a pension plan as such, but a savings plan. So that in the event of another financial crisis they may have enough to afford relocating for a better job prospect.
schools is a choice. Don't expect the taxpayers to pickup your tab for that. State Universities offer cheaper rates but they are not good enough for some spoiled brats. Get real and grow up.
Now, you get real.
State schools will still have students racking up tens of thousands of dollars, and online (accredited) schools open doors for those who can't attend due to geographical or physical limitations, but they're very pricey and loans are necessary any way you slice it. Apparently you believe that everyone hurt by interest rates and a horrid job market is a "spoiled brat" who chose to go to an Ivy League institution. What a joke! It's getting to the point that all universities are expensive and unaffordable.
Yes, taking on that debt is a choice, as is committing to make a better future for one's family through education and hopefully a better shot in the job market. Signing loan paperwork when the economy was stable and then losing one's job due to a spiraling, downsizing economy will challenge anyone's best of intentions.
But, again, what about the focus on the "least" of the 99%, whose life-or-deÂath economic struggles, put the student-deÂbt problems to shame.
A one-time student "bailout" of today's 'relative' (to others) privilegedÂ, very-small subset of the 99%ers lucky enough to go to college and graduate school, does not even begin to address the problems of the MAJORITY of the Americans 99%ers with less-than or nothing-beyond a high school diploma.
What about the needs of the truly neediest, poorest, minority and immigrant subclass among us? Let's bring them up fromm the back of the bus and attend to the needs of the "least of our people" first!
(And for those who think that students with massive debt would not have access to bankruptcy court even if student debt is made fully dischargeable. Think again, the litmus test for bankruptcy has always been do your liabilities exceed your assets. Of course a student with no- or little income and enormous student debt would be eligible).
This is a both/and proposition or a starting place for an actionable step to reform economic systems and policies that are not working. When the majority of people with student loans don't have the means to pay them back, it reflects a broken system. This in no way detracts from other people in dire economic straights.
As for the litmus test for bankruptcy being assets exceeding liabilities, it's not that simple with student loans. Here's a direct quote from Sallie Mae's website:
It is difficult to prove "undue hardship" unless you are physically unable to work and there is no chance of your making money. To discharge your student loans under this special case, you must file a separate motion with the bankruptcy court and present your situation before a judge.
If your student loans are the largest part of your debt, you are better off not filing for bankruptcy because courts are very reluctant to discharge student loans.
1, They pay no taxes, they need to pay their fair share like all other corporations with boards.
2. Regulate them so that a rate a student gets when they start is the same as when they leave minus inflation that can be applied only once.
3. All donations have to be reported and taxed as non-earned income.
4. All sports procedes have to be spent on helping pay for defaulted loans on all kids that maintain a 3.0 GPA and still can't find work where the payment is less than 10% of their income.
They take your money for tuition and import your competitors to work on their grants on the cheap.... The new job imports H1bs either compete for jobs here or compete at home.
Outcome? Massive losses of your money. Where is the surprise?
Good luck paying your loan back, unlikely.
89,000- PhDs are now in temporary employment postdoctoral positions with no health benefits, etc, according to the National Postdoctoral Association (many of theses are H1Bs receiving PhDs in foreign countries, but need jobs here).
27,000- PhDs- the number of Science and Engineering postdocs (Physics and Engineering) with temporary visas at US universities, as given by the National Science Foundation, tripling from 1985 to 2005.
Rank (corrupt job destroying university) H1B Visa Applications H1B Visa Average Salary(2008)
1 University of Michigan 1,292 61,687
2 Columbia University 991 65,441
3 Harvard University 973 58,135
4 University OF Florida 899
5 Duke University 898 59,548
6 Emory University 844 242,688
7 Northwestern University 825 53,085
8 The Ohio State University 811 50,740
9 University of California Davis
On and on it will go.........