Bankruptcy of Your Student Loans

Bankruptcy of Your Student Loans

Saturday, August 20, 2016

2016 Presidential Candidate calls for student loan cancellation!

I heard somewhere the other day that Green Party candidate Dr. Jill Stein has advocated 'canceling student loan debt'?

On Wikipedia (under her political positions) the Subsection "EDUCATION" Presidential Candidate Dr. Stein has the following statement of her idea on dealing with student loans, and I quote:

"Stein has spoken in favor of cancelling all student debt, arguing that it could be done "using quantitative easing" and without raising taxes.[125][126] She says that quantitative easing "is a magic trick that basically people don't need to understand any more about than that it is a magic trick."[125] Stein says that her plan would be "the stimulus package of our dreams to put to work a whole generation of young people that's held hostage in debt".[126] She has said that her campaign will do for the "43 million young people trapped in predatory student loan debt" what "our mis-leaders saw fit to do for Wall Street when they bailed them out to the tune of 16 or 17 trillion dollars using so called quantitative easing".[125] She opposes school privatization.[127]. "

So...  As I am reading through this I asked myself, 1st of all what is "Quantitative Easing (QE)" ? and 2nd since she is saying QE "is a magic trick that basically people don't need to understand any more about than that it is a magic trick" and if she is saying no one needs to know what it is", how is that going to help anyone?

Student Debts = Financial Assets!

Next I did a look-up of Quantitative Easing.... WOW!  No wonder she says "people don't need to understand any(thing)" about it!  I sure could not!

In short... It sounds to me like that the Central Bank (i.e. The Fed) buys up the (student loan) debt, then floods the market by printing more electronic cash based on the so-called "financial assets". 

Wikipedia describes this so-called purchase of these assets like this: "A central bank implements quantitative easing by buying financial assets from commercial banks and other financial institutions, thus raising the prices of those financial assets and lowering their yield, while simultaneously increasing the money supply."

ECON 101 = "Magic Trick"

Now I will be honest.... I never learned too much in all of those "Econ" classes I had to take, but this for sure does not make anymore sense to me than ECON 101. 

No wonder Stein calls it a "magic trick" and that nobody would understand it!

That being said, I doubt very seriously if she could get that policy implemented if "and if" she could pull a rabbit out of her hat and win the Presidency in 2016. Meanwhile, we wait to hear any substantive solutions from either of the leading candidates.  

Cancel ALL student debt? Great idea -- or wait a second... 

Cancelling ALL student loans via a "bailout" like they did for Wall Street sounds great, the only problem is who's debts do you cancel.. everyone's? those in default?  those who's social security or wages are being garnished? Just who's debts do you cancel?

What about those currently enrolled?, what about those planning to start college this fall? or those future kids? Do you cancel just the Federal Loans?  What about the private loans?  And what about Parent Plus Loans?  Who decides which loans qualify and what would the qualifications be?  WOW that is a lot to figure out!

As for me... I think there is no quick solution to the education debt crisis. 


But if you ask me.... My "LEMON LAW" for student loans made a hell of a lot more sense than trying to convince the FED or Central Bank to buy up all of the debts.  You can read my "What We Need For College Loans Is A Lemon Law" and see what I propose.

And along with my Lemon Law, I would push for a top down review of salaries and benefits being dolled out to Administrators who act like more like Prima Donnas and self-proclaimed Kings and Queens!

Additionally, tuition and fee reviews would also need to be performed and made to be reasonable based on the quality of the education provided and the outcomes of actual job placements.  

It is time that colleges be held responsible for the failures graduates and non-completing students suffer due to the inflated and over-sold promises of success, enslaving those same students to a lifetime of debt with limited or in many cases, no benefits! 

Meanwhile, we wait to hear any substantive solutions from either of the leading candidates!

If you have any comments or questions, feel free to post them, I will be happy to address them.  Until next time, God Bless YOU and America, regards, Richard Allan Precht

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