Reverend Jesse Jackson, as reported by the USA Today, has made a bold and wonderful suggestion which the whole country should take into consideration. Why not make loans to students repayable at the low 1% interest rate which is charged to those who are buying houses or cars?
It would make sense to stimulate the economy once the $800 billion plan is unfolded and put into action, by putting some stimulus into the youth of our world. Instead of saddling families and students with exorbitant loans which they will never be able to repay, why not make them an offer of a cheaper interest rate, at a longer amortization period, and keep our children in school longer.
Harvard and Princeton stand to lose enrolment in the coming years due to rising tuition costs and in order to make it possible for more students to attend the ivy-league schools, it would make sense to lend them money at a more sensible rate. Today, car dealers are offering no money down, 0% interest rates to buy a car. Students are worth more on the market than a brand new Chrysler.
Instead of losing potential, talented graduates for our future, we should be bending over backwards to make it possible to attract more students to stay in school longer and to graduate with a career goal to put this country back on track. We have obviously done a poor job in the past, Jackson appeals, so it would behoove Congress to put forth a student-based loan and grant system at a very low interest level which would appeal to the most frugal of families.
This is not the time to add debt onto debt but to make it easier to buy homes, to keep homes, to buy cars and other products, to stir up the economy and to put some value into our children.