A Working Economy or Wealth Building Economy?

Dated January 27,  2010 I opened an electronic communication from the Department of Education's Direct Loan Servicing Center. The purpose of the correspondence was to inform me that my annual student loan statement was now available.

Upon reviewing the statement I realized that I paid nearly $4400 on my student loans last year. One might say this was admirable.

However, despite my efforts my balance actually grew nearly $500. Anyone see something wrong with this picture?

Now, this is more than just a little depressing. It's enough to make me just want to give up and stop paying these loans altogether. Here's why: my student loan payments currently account for 20% of my monthly net income. That percentage will only grow over time and barely touch the principle in the near future.

Out of this frustration I am reminded of how things have gone so terribly wrong in this country. How did we ever get to a place where our students were so far in debt after college that the only ways of alleviating that debt in the near term were to land a very high paying job (preferable), win the lottery (unlikely), leave the country (heart breaking), or pass away (unthinkable). We all pretty much planned on the good paying job - but in this economic climate how many of us actually find it anymore?

The major point I would like to make here is that our priorities have become so twisted that our national agenda is more in line with a wealth building economy for the few than it is with a working economy for the many.

I refuse to give up and will continue fighting but I must say that President Obama's recent attempts to help students and student debtors, while admirable, falls far short of the help we really need and deserve. With over $550 billion dollars in outstanding student loans our President's best option is to reduce payments with IBR ( from 15% down to 10%) and reduce the number of years one would pay in IBR from 25 down to 20 years.

Sounds nice right? The problem is that this idea is akin to putting a band aid on a bullet wound. Yeah it will hold for a second or two but you will eventually bleed out if you don't get some real help and fast.

So to my President I say thanks but no thanks! Read my site Sir and you will find that the ideas for forgiving student loans and reducing or eliminating the interest rates on these loans will go much further to help student loan debtors and stimulate the economy than some cheap ploy to win our silence.

I for one won't be silenced! I need the President I voted for to stop being such a wimp when dealing with people across the aisle and start fighting for me and the future of this country. Working class Americans deserve more than speeches and rhetoric - we deserve results. Take of the kid gloves and start knocking some Republicans and Democrats around and get us back on track. George Bush used the bully pulpit of the presidency to do some very bad things - its time to use it for good.

Thanks for listening to my rant.

Warmest Regards,
J. Densmore