Student Loans:

The Plight of the Next Generation (Part I)

An Open Letter to the President

Written by Victor Madison 
October 27th, 2009

Today, many Americans are struggling to provide their families with the most basic of essentials, whether it is a roof over their head or food in their bellies. These hardships affect people who work (or worked) in almost every industry and are not limited to the unskilled, undereducated, and/or unmotivated citizen.

It is an unfortunate truth that many of those who have been hit hardest in this economy are college graduates that find themselves, in many cases, saddled with the weight of a debt obligation which now seems insurmountable. The men and women who make up this segment of the population have been particularly abused by the unscrupulous bankers and, have too, fallen victim to so-called “Predatory Lending Practices”. These Americans have already struggled, sacrificed, and toiled in an effort of self improvement, in order to be a productive and positive force in our communities. There is no bail out package on the horizon to help these college graduates and for most, none is being sought. All that is asked is that the companies that propagate these loans be held to the same standard as other corporations, and that they be forced to give the consumer an accurate accounting of the contracts that are being signed.

The following is a passionate letter to the President, composed by a man who is quintessentially American. He is a friend who, in all the time I have known him, has proved to be hard working, honorable, loyal, and kind. He is a true patriot and he still holds love and hope in his heart. These are his words and his appeal to our government.

_______________________________________________________________

Mr. Barack Obama

President of the United States

The White House

1600 Pennsylvania Avenue

Washington, D.C. 20500

April 25, 2009

Dear Mr. President,

I am writing you in regards concerning the financial struggle myself and many of my fellow Americans have found ourselves in due to private student loan debt. We have tried to fix things ourselves, coming up with creative and desperate solutions so that we and our families may move on with life. We have taken on second and sometimes third jobs. And have sacrificed our personal, and in many instances our family's health, as we try to stay in good faith of paying our bills, only to be denied the help we need from the same lenders whom we trusted our futures with.

The lenders are the ones who told us “We’ve got you’re back, you have nothing to worry about” and “We offer many different repayment options”. We, the next generation that will eventually lead this great nation, have been transformed into beasts of financial burden that have no hope of removing our yoke without the help of our current leaders. We need your help and we need it now.

On top of the predatory, pushed, and sometimes “shady” practices that many private lending companies use to secure our business in the first place, we find ourselves in most cases unable to find any means of relief.

Many of us are told that we have many repayment options upon graduation.

We are lead to believe that with a college or university degree we are making a better life for ourselves, our families, and ultimately our country. That with a degree we will make many times more than those without, that we won’t be the person worrying about paying the bills that are already months behind simply because our education will open the golden doors to the land of opportunity. But the fact of the matter is, a college degree in our country simply does not hold the same earning potential that it once did. A gallon of milk and a 32oz. bag of cheese cost roughly $10, more than many middle class citizens make in an hour be it hourly or even salary pay.

For example Sallie Mae, according to their company website as of April 25, 2009, states that they service over ten million customers, and offer many different repayment options, yet they no longer offer consolidation due to the economy and legislative changes. There are literally thousands of pages that can be found on numerous websites with personal stories about how companies such as Sallie Mae have refused to offer consolidation, lower monthly payments, restructure loans, lower the interest rates, and so on. Unfortunately, these lenders have become ignorant to the definitions of the words broke, destitute, impoverished and so on.

When a customer asks for forbearance, a deferment, consolidation (assuming they can find a company that provides such a service) or any other means of payment help, most if not all private lenders charge a fee for every individual loan the customer has. In many cases when a forbearance is put into effect, the interest that will occur over the time of the forbearance is added to the principal amount of the loan, in essence meaning that should a customer fall on hard times and need a forbearance, that they will in fact essentially be paying double the interest for that portion of the loan. Many of us are without hope knowing that the once mighty American dream of going to a job that supports our families and coming home to a house we own has become a nightmare to obtain.