Problem: Student loans provided via banks are guaranteed by the US Government. So the banks are not taking any risks on these loans, if the students do not pay the US government will. Pretty good deal for the banks and they now charge 5-7% risk free. Banks do not have to do due diligence on the use of the funds – a computer programming major vs art history major are the same to the banks. Students do not make a cost benefit analysis on the choice of major as well. It appears many students decisions are based on television shows popular at the time of their decision. College’s can also raise tuition and there is little, if any, drop off in numbers of students attending. Students graduate have amassed large student loans majority cannot find jobs in the field they studied because the US government, the banks nor the students selected their majors on the basis of what was needed for the US economy. Students who cannot find a career in their field of study, pay the principal and high interest rates and take whatever job they can find and probably live with their parents. So now parents and young people are very unhappy with their situation. The US government prevents the young people from deducting the interest on the loans (while the rich can deduct loan interest on yachts) and the young people cannot go bankrupt as any US corporation or any other individual can as well on their loans. We now have indentured young people unhappily working off their loans for as long as it takes.
Solutions: Occupational Aptitude Tests should be given to each student to match personality with aptitude for various skills and abilities. The government’s department of education in conjunction with corporations formulate the future workplace skills needed and issue numbers needed in the future and probable salaries. This information is presented to the students and recommended areas of study made to each student.
The New Postal savings system will make loans to students based on students complying with the recommendations of their aptitude tests and the needs of the country. If students do not wish to comply with the recommendations they will not be funded by the U.S. Postal savings system. These careers do not just apply to college, but to all vocational skills and all trades. The interest rates of these loans will be tied to the rate of inflation plus 1% and will be deductible against income once working. These educational loans cannot be dismissed in bankruptcy.
Your Ideas: If you have suggestions please send them to Ken@AmericanPoliticalParty.US