Borrow Money

    "We've always encouraged young people: Take a shot, go for it, take a risk, get the education, borrow money if you have to from your parents, start a business," Romney said, as he addressed students at Otterbein University in Ohio. As I listened to those statements, I realize that whether the money is used for education or business, it shows how far removed Romney and the GOP are from the common people. How many young people can run to their parents to borrow $20,000? How many parents have $20,000 as disposable cash? How many parents have only one child ; what about their other children who might also want a loan? Of course if my parents have money, I would probably borrow ( if need to). from them before I borrow from an institution. I really wonder ; did Mr. Romney know his audience. Did he know that 100% of the students at Otterbein University received financial aid with 83% receiving federal loans and 13% receiving private loans. Does he know that the same can be said for students at other campuses?

       Ironically all of this is amidst the debate about Romney-Ryan budget passed by the Republican House, which makes it more difficult for young people to afford a college education. The Romney-Ryan budget would not only lock in the interest rate hike, it would also slash Pell Grant scholarships for millions of students, and eliminate work-study programs for nearly 130,000 students. Starting July 1, the interest rates  for federal student loans is going to double, jumping from 3.4 percent to 6.8 percent. Tell me, how is this encouraging young people who are already clogged with other bills and unemployment?  Besides, these are the same $20,000 borrowing young people who are sneaking a rent free room at their parents’ homes.

           On Friday, April 27, New Jersey lawmakers approved a bill that would stop the Stafford student loans from doubling in July. Unfortunately the Bill as presented by the Republicans, would pay for the cost of the loan extension by cutting funds from the Prevention and Public Health Fund . While I must admit, that this present administration can do more to alleviate the situation of its citizens, it is still  focused on helping everyone, including, the middle class and the poor. For example, changing that law of doubling federal Stafford loan  could save more than 7 million new borrowers on average $1,000 a year, 

      Most students, even after graduation, are not rich by any means. According to The Federal Reserve Bank of New York estimates 37 million Americans have student loan debt, totaling $870 billion. School teachers like Devin and Sarah Stang are example of borrowers and their four young children who had to resolve to bankruptcy. Yes, they did “take a shot, take a risk, get the education,” and would like to borrow some money from their parents. Because they  “have to.” Sadly, Mr. Romney; their parents are out, looking for jobs! It’s the real world.