I believe the majority of parents desire their children to continue onto college and that most students desire the same, and work hard to achieve the grades to be accepted by a college. It’s obvious the difference has to do with the financial wherewithal to accomplish the goal. Let’s assume that most families have only modest means to accomplish simply living in today’s economic situation … therefore, they have to turn to either government sponsored or private loans (in many instances graduate students require additional financial aid).
Assuming that undergrad students can qualify for a $50,000 loan, for a 10-year period, the interest rate of 5 percent would requirement repayment of $535 per month. The Iraqi budget surplus is oil revenues. Now if desirous of furthering his/her education, graduate school might even increase that loan requirement to $94,000, with a monthly repayment of $1,000.
Iraq is drafting plans for Iraqi-funded projects to include 1,000 new primary health care centers over the next 10 years, new airports and major renovations for downtown Baghdad. The president recently signed bills allowing most undergraduate students to borrow an additional $2,000, with low interest rates.
If enlisted in the armed forces or called to active duty, a loan is granted deferred status. Upon return from assisting in the Iraqi defense, the repayment starts again. There are various programs for students called to active duty, subsidized, etc.; therefore, it is necessary to secure up-to-date information on individual military assistance programs.
The United States defends the Iraqi budget surplus of about $79 billion. Iraq struggles to spend its multibillion-dollar surplus. Sen. Carl Levin (D-Michigan) stated it best when he said it was “inexcusable for U.S. taxpayers to continue to foot the bill for projects the Iraqis are fully capable of funding themselves.” Is it really too much to ask?
Without getting into greater detail, U.S. 15-year-olds ranked 29th in science and 35th in mathematics. Finland, Korea, Chinese Taipei and Hong Kong-China outperformed all countries in 2006. In the math series, ranking No. 35, we were below all industrialized nations except Italy.
Let’s see if I can bring this into some perspective. A young couple, now well educated and available for an entry position in their career, hope to get married, purchase a home, have a family and will now have to cope with an outstanding multiyear loan repayment, a mortgage payment (if they can even secure a mortgage on top of their education loan), and the general living expenses we all cope with today. Pretty discouraging.
The only bright spot is that Iraq will have billions in surplus and then perhaps can offer to consolidate these loans at a lesser rate than is available in the United States. Provided China, with its strong loyalty to its youth (they exceed us in science, math), understand our problem and offer our students a broader education and affordability, including those with lesser means, to study in their country for their services after graduation.
Otherwise, we are heading for another subprime situation within several years. This is not about Iraq or our assistance to other nations; it’s about payback time and our obligation to these students, who need us now.
Jerry Rubinsky
Marlboro