One word can sum up the only viable solution for the assault on the poor and middle class through the educational system…
Follow me for a moment on this.
The legalized extortion of money and freedom by means of higher education was, at the very least, addressed by POTUS 44 in the most recent State of the Union. "In the United States of America, no one should go broke because they chose to go to college." This integral ingredient of the Union is in desperate need of reform and the 10% of your monthly income repayment plan along with the 10 or 20 year forgiveness arrangement is nice. It's nice.
But, like attacking the Supreme Court's Citizens United decision, for now it's just tic-talk from the POTUS.
Let us lay out the things we know to be true:
1. Education is important, a border lined necessity.
2. Education can be paid for with a variety of public and private loans.
3. Universities have no incentive to keep costs down.
4. Financial complexity and student complacency keep costs high.
5. After graduation, the average student owes about $21,000 according to Liz Pulliam Weston and The Project on Student Debt. (Personal Commentary: That number feels quite low and I feel sorry for those folks who signed on the line but never graduated and are forced to pay the balance on a 4-year degree never obtained.)
The reform plan put forth by the leaders of the nation aren't bad, as previously stated, they're fine. There are those of us, however, that want hope in the form of something other than earmarked legislation. Those of us who see the cost of higher education as criminal but haven't come up with a better way to combat the permissible debt enslavement. The best solution I've come across for battling the barrage of collection calls and applying for jobs is deferment. Once they started checking credit history when applying for work, we had to come up with something. That something is deferment.
There are a couple different ways to get deferment, the one we're focusing on right here is simply being in school. And you only need to be enrolled as a half-time student.
The solution isn't less school, it is more school. Yeah, when you're in school they don't collect payment; they put you on deferment till you graduate. Then when you graduate you've got anywhere from three to six months to get yourself enrolled in some other kind of higher education, therefore, keeping the bailed out banks at bay. Sure, you'll continue to accrue interest but if you're going to be making payments well into your 50's, or 60's anyway, why not just let it continue until the ultimate loan forgiveness kicks in…death.
Please save the comments about passing debt on to the children and direct them towards the Economic Recovery and Reinvestment Act of 2009.
So, if you're completely stressed out about your mountain of student loan debt perhaps deferment is the option for you. Just drop one of your fantasy football leagues and pick up an on line course. Remember, it's not like credit card debt. They can't repossess your education. And when you're thwarting over budgeting your outrageous repayments, if you're not sure…
…you must defer.