DOE and the Parent Plus Loan
I learned long ago that when trying to make a point and keep the reader’s attention, the fewer words used the better. The last thing I want is my readers getting glassy-eyed to the point where the words all sound like “Blah, Blah, and Blah”.
This is especially true with this topic, and the proposed options and solutions.
So, let’s get right to the meat of things, AND let’s keep it simple.
Suffice it to say: This is a very complex problem and yet, I believe the initial step towards a working solution can be rather simple.
The complexity comes from a Federal government that relishes in the need to make things as complex as possible. This is done, at least I believe, for the purpose of “mind numbing” the general population into complacency and compliance without really knowing what is going on, and what the options and eventual outcome really is. Then, you (The Government), create a “System” of federal agencies and bureaucrats and lawyers to support this “System”. This then has to be followed up with a vast collection of private sector companies all created to support and enforce these policies in such a way that in the end, no one has to take the blame for anything. After all: the companies that enforce the policies didn’t make the laws, and the DOE (Department of Education) didn’t approve the policies, they are only responsible for enforcing them. If we, the private citizens, really want change and improvement, we will have to talk to that pinnacle of efficiency and cooperative effectiveness: Congress!
Yes, this all sounds cynical, but it’s also true.
This above is the cause of the problem.
The actual problem is this Student loan program called “The Parent Plus Loan”.
There are many separate types of student loans and many of them probably work just fine for those who have them. This one specifically, is NOT one of them that works.
In an effort to keep this as simple as possible:
Basic Mission statement:
- To allow ALL those who have ANY kind of student loan to have access to ALL of the options and programs available to everyone. To accomplish this NOT by taking away those programs that are good, thereby making the system BAD for everyone evenly, but by opening up all programs to EVERYONE, regardless of what type of loan they have.
- Furthermore, the system that allows people to sign up for these loans needs to practice a policy of full and complete disclosure BEFORE any agreement is reached. In my experience at least, this was NOT the case. I didn’t completely understand the impact of my loan until my child was in her second year of college.
- Finally, the system needs to be changed such that the ones getting the financing for the education (The parents), need to be able to work with and talk to everyone involved in the education of the recipient of said education (The Student). Too often, in my experience, I was not even able to speak to the Student Loan department of the college because of privacy laws prohibiting me from that knowledge. I can pay for it, but I can’t talk about it to the people spending the money.
Basic Supporting Information:
- Again, I am keeping this simple on purpose:The average interest rate for a Parent Plus Loan is 2 – 4 times higher than options available to other federal programs.The payment options are VERY limited for owners of Parent Plus Loans.
- When you first apply for the payback options, and when you re-apply each year for the limited payment options that you DO have, you are shown several payment options with payback plans and programs that are very affordable and manageable. In the end however only a limited number of options, all of which are at a higher interest rate and payment amount, can be applied. You are told that these others ARE NOT available for the Parent Plus Loans.
- There is NO vehicle for Parent plus Loans to take into account your actual – income or other expenses and obligations. This is an unrealistic program for anybody simply because all of our spending is based upon a credit rating, and existing debt and we borrow and spend and pay back accordingly. Then comes Parent plus Loans where you can borrow and are expected to pay back without ANY thought of what you already owe and are responsible for.
- In an effort to keep my payments reasonable, I am consistently making payments that do not even cover the added interest for that given month –all following an approved plan. So, at the end of faithfully making payments for 12 months, my loan balance has actually GROWN, rather than being reduced.
The options for other loan programs are much more flexible, reasonable, and take into account the situation of the borrower and what they can actually afford. This makes sense for a new student just coming out of college and looking for a job.
This also makes sense for us parents, staring at retirement age and a time when our ability to earn money becomes harder to continue.
The Department of Education should be an institution designed to assist in the education of the American people, NOT a round-about way to assist in paying off the national debt, OR a profit-making venture for corporate and government agencies alike. The people borrowing and trying to pay back these loans should be their number one concern, NOT how complex it all can be or how much interest they make in the process.
I am a proud American. I realize that ultimately I am responsible for the money I owe. However, the Government that made getting this money so easy should also be willing to support those trying to pay it back. This, ultimately was my final mistake: assuming that they (the Government) would be there to assist me and would make it all possible to afford.
I ask that you support this with me, and join me in bringing about real change, both through this petition, and through whatever constructive ideas we as Americans might have. Together WE ARE America. Together we can make a difference. The age of a country that truly is “Of the people, by the people, (and) for the people” is not just a slogan from our history: It is the foundation of what made this country great, and what will keep it great for many more generations to come.
