Friday, June 7, 2013

We Need Change! But What Does Change Really Mean?

I manage a shop where I have plenty of down time during the day (sales). This allows me time to read and research the student loan debt crisis daily! Article after article that talks about a solution  I see the same problem the "Profit" that will be made from their solution.

I want to make sure you understand I believe in small business, we all have to make a living. I don't so much believe in the "too big to fail" that takes our tax credits, while paying little or no tax then sending their profits offshore and sending more and more jobs to China, Mexico, Vietnam etc.....

I have said and will continue to say, that I believe until the profits are taken out of education there will be no real solution!

I know there are major cost involved in not only college, but also in our secondary education system.
Our government is spending enormous amount of money will no real results!

The education system is broke in America! The real solutions to this problem are in each and everyone of us!

We..... Parents as a whole have not taken responsibly for our children. Teachers, I know most  became a teacher to make a difference in our children future, but somewhere along the line the unions
told you that you were more important than the children you teach! Again not all teachers, but enough who have helped destroy our public schools. Politicians, so many of you wanted to serve your towns, state, and at the federal level. I know you're told you need to sling mud, spent outrageous sums of money if you want to get elected, toll your party line, and the Lobbyist (8823 in 2013 so far!) that have you out numbered 16.5 lobbyist  to each one of you!

My question to you. I know many of you are saying I didn't create this mess! I beg to differ,
We as a whole have sit back and allowed our children to get sub-par educations. We have allowed
Teacher's unions to put our children second. We have allowed our politicians to be corrupted by  lobbyist and special interest.

Till we hold ourselves first, and then those that are responsible for the future of this Great Country  accountable there will be no change!

 Each and everyone of us has to look deep down inside and from the shape of things for the first time  in our life and be completely honest with ourselves and know there are solutions!

Education has a cost! .... our children's future, the security of our nation, The American Dream!

I today propose;

1 year reinstatement of Bankruptcy laws to include both federal and private student loans!

My suggestion is to show the student loan bankruptcy cases on c-span and let the American people have the right to vote the on" Permanent Reinstatement"

Ok President Obama,  Our Congress  

 I am not an economist, but your experts don't seem to be able to find a solution! 

 I will give you my proposal I know it will start small but think of the end results !
 I  gave an over view of proposal in my last post! It has been tweaked a little!

Before you dismiss my proposal our student loans currently are profit driven
Just like your credit cards, your mortgage etc... Why do you think additional  fees continue
to added?.......... PROFITS !

My business model is based on "Sustainability" it is "NOT PROFIT DRIVEN"!

The student loan debt crisis is now $1.1 Trillion and it continues to grows. It seems no one has any answers.

But changes are starting to happen! One example :SoFi Student loans below shows my idea will work:

SoFi Student loans were founded using the power of social  communities. The alumni funds the student loans while  making a "Profit for Alumni" in what they call the triple crown a highly competitive yield,very selective risk, and a personal connection with fellow alumni borrowers of elite universities at a 5% fixed rate for students.

 I want to raise the money for a Pilot Program a "real nonprofit lender" where profits continue to fund the program the ideal rate would be a 2%-3% fixed rate. Starting with 1,000 loans at $25,000 or less. I know we could raise money through donations. Start with 1,000 x $25,000= $25,000,000.00 .

I will continue to ask you for your suggestions all are greatly appreciated!

I said before I'm not an economist so if my sights are set too high this could be started on a smaller scale say 50-100 student loans.This business model or one similar would be a very good start!

There will be no million dollar salaries / bonuses. We set the salary cap at say $250,000 for the CEO if needed. I'm sure there is a retired bank executive that might even donate his time and salary, and a fair salary for employees. The profits left over go back into the principle of the student loans?( maybe asking too much?) Loans changed from compound to simple interest ? No more added fees etc.. The idea is to get theses loans as low as possible so the student will  be able to pay off the loan in 1/2 the time.

I propose a Program added; if graduate can't find or loses their job they work in their communities could be schools, city or county  public parks, after-school programs,nursing homes ,VA hospitals etc... payments are made for them by the non-profit lender! Remember this is no longer a profit center this now about the future of our children, and building a strong economy with very low UN-employment!

I have said and will continue say I don't think we will ever solve the student loan debt until the profits are taken out of education, student loans etc...

I know this is just a very small step,but after proving this theory works!The next step  create a Business Model to set up in communities, in the small 1000 student body colleges that trying to graduate their students with little or no debt, this list could go on and on....I know with the technology today cost can be kept very low.

I believe if the model is kept small, and are used in the communities where the students live.The community will have a vested interest to keep the program from being corrupted!

This program doesn't have to go through half dozen hands that each wants to make their share of the profits,late fees,bonus,etc.... for their service! Look at the huge salaries and unheard of bonus our banks are taking while graduates continue to suffer from their gains? ............

How is this possible?

President Obama and Congress why are you allowing this to happen?

To start; the program can be set up for those students that are paying private loans on time that are variable rates. I know the program will have to be very careful with defaults at lest in the beginning.
I  think we all know that the variable interest rates are going to Skyrocket at some point whether it be  next week? next month? or next year?.....!  At that point the student loans default rate could double if not worse!.

I know there has got to be a better way. Again in my opinion until Profits are Taken Out of Student Loans,and Education  we will see no real change!


 I want to thank you for your time,

 Anthony Eller

We Need Change! But What Does Change Really Mean?