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Lessons to learn from student loans

May 31, 2012
Daily Press

EDITOR'S NOTE: This letter was written to Barack Obama, Senators Carl Levin and Debbie Stabenow and Congressman Dan Benishek.

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Our national debt now totals $15 trillion and is rising each day. Now, I keep reading that the student college loan debt is close to $1 trillion. It would appear to this novice that the federal government got involved in seducing students to borrow money with easy talk and rules much like the homeowner got seduced to borrow money from banks who then sold those mortgages to their federal guarantors Freddie Mac and Fannie Mae. Some loans were, from all that I've read, with as little as 5 to 10 percent down payment on residences costing upwards of $250,000 or more and we keep telling the world how intelligent we are!

These college educated students might well be our local state and federal government leaders in the near distant future. If we establish rules that forgive, greatly modify or reduce their loans now for which they promised to repay, what example does that establish for them if they are elected into authority? May God help us if that happens.

I've read that in 2005 Congress passed a law that prohibited student loans from being erased in bankruptcy proceedings. Now, I'm reading that Rep Steve Cohen and Sen Dick Durbin have introduced bills in their respective chambers to void this provision. I'm opposed to such proposals except in extreme cases of financial hardship. It really teaches our college educated leaders of tomorrow nothing. Besides, a bankruptcy filing is, from all that I know, a negative factor that is attached to one's credit rating for 10 years. Say "goodbye" to purchasing a new home or automobile on credit for the next 10 years. That will not help grow the GDP!

I do support keeping the college loan interest rate at its current level.

This nation doesn't need any more increase in our national debt.

I am opposed to Rep Hansen Clarke of Michigan who has introduced a bill that would forgive a student loan after 10 years of income based repayment, and for workers employed in public service jobs only 5 years. What a real bunch of nonsense! Is "Public Service" any government job?

Unless, Washington makes some drastic changes soon, I fear the USA will go down the tube just like Greece and other European nations will do so.

PS: What this country requires is a term limit for service in its federal legislature of 12 years in either or combined in both Houses! No more professional politicians.

Robert E. Gifford

Rapid River



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