Sunday, July 7, 2013

There are 100's of Solutions!

I started this blog March 9,2013.My first post came from a article I wrote February 16, 2012.
I tell you this because of how deeply I am  concerned about this crisis, and the reason for this blog!

My daughter Ashley was going to the University of Southern Mississippi. Then Hurricane Katrina hit we had a lot of damage at our home, but were in much better shape than most. The hurricane changed me forever. I got to see first hand just how unfair the system can be to the poor and the middle class, some losing their homes, life savings, jobs.  It seemed only the strong survived.

I found you learn to dig deep down, and at that point you find out the man you really are.

I found out there is always a solution, even when everyone is telling you to forget it there is no solution! I and the Gulf Coast are living proof they were wrong!!

Well that brings us right back to this $1.2 Trillion student loan debt. The debt is a very serious  problem I will not make light of this huge debt. The bigger problem this debt is growing at it's fastest pace yet!

The sad part is Our President and Congress wants us all to believe if they can just keep the interest rate at 3.4% The student loan debt crisis is solved?

I have spent almost 4 years now watching and researching this crisis.
I have spent the last 5 months giving you  solutions on Project Tuition Reimbursement.

1) Trickle from the Middle, Up and Down Theory
It is based loosely of the Opportunity Maine Tax Credit and the existing $5250 Tuition Reimbursement
program being used now to send employee's back to school and the employer receiving a tax credit to pay for the tuition.
Now you say you don't believe in tax credits
Our major corporations are receiving tax credits then sending their profits offshore and our jobs to China, Mexico, Vietnam etc.
Wouldn't using the tax credits to match small business and graduates together,  creating jobs, paying student loan debt,... and there will be checks and balances little or no waste of tax dollars!

 Using tax credit for Success, instead of Failure. These are Our Tax Dollars!

2) I suggested that Harvard be our first university to be self-sustainable, creating a blueprint/model for all colleges and universities.
My reasoning:
Harvard has the largest University endowment in the world; estimated $34Billion
The last down turn the economy lost an estimated $11 Billion or 27.3%! Why not invest in their  own future
Harvard  provides estimated 60% of their students with scholarships already
Create a non-profit Harvard Bank financing their student at a low fixed interest rate
The bank would create sustainable profit center to finance Harvard students
If your responsible for your own success cost will be kept at a minimum
Tuition would go down not up or at least wouldn't be an automatic increase yearly!
If  I'm not mistaken doesn't Harvard produce a large number of our world renowned economists?
Harvard would now be responsible for their own success or failure

3) Employer's buying the student loan then charging a low fixed rate coming out of graduates pay checks, pre-tax like our employee health care. The employer would make a modest 3%-5% return on their investment of their employee.This would allow graduates to make extra payments to the principle.
This would also help eliminate late fees, penalties, the additional compounding of accrued interest on the student loans.This could lead to a match by employer similar to our 401k plan

4) Non-profit lender/bank created at small college and communities to offer low fixed interest loans
    on a smaller scale. Checks and balances in place each year,student's to be reviewed before next loan is
    given for the next year classes.

5) A 1 year reinstatement of the bankruptcy laws both Federal and Private student loans to be shown on c-span for the American people and our politician's can see the real problems. I am asking Congress to allow the American people the opportunity to vote for permanent reinstatement.

There have be mistakes made on both sides, it's time to correct this problem.
At this point nothing is off the table as far as solutions.

This will be the next bubble to bust if major changes are not made now!

I only mention a few of my solutions. If you are concerned about this crisis I suggest you start reading my post from March forward. I know once you understand you can't help but get involved.

Each of  us has at least 1 solution!  Imagine if  all these options were available to our students.

I ask you to get involved write and call the President and your Congressmen/Congresswoman.
talk to your friends, co-workers etc..

It's time to demand real change!

I ask you.

Our youth, the future leaders of this Great Country. Do they not deserve the opportunity to live the American Dream?