Monday, April 30, 2012

The Joy of Irresponsibility

Oh the latest touchy-feely goodness of Obama. Government enabling stupidity.

Here is the letter of the week from Obama's campaign site:

Letter of the week—April 30th

By Lauren Peterson on

I am in the final weeks of earning my MBA from the University of Montana. When I went back to school two years ago, I had $30,000 in student loans. At the time, my employer was reimbursing me for my tuition in graduate school—however, another job opportunity came up and I could not pass it up. My new position is with a nonprofit organization and therefore the option of tuition reimbursement is not available (understandably). In order to fund my graduate school tuition, I had to take out an additional $20,000 in student loans.

I am a single mom to a 6-year-old son, and as you probably gathered from the paragraph above, I love my new job. Over the past few months, I was beginning to dread finishing school because I had absolutely no idea how I was going to repay my loans at over $500 a month. These payments would have made things so absolutely tight for us that I didn't know how we were going to live from month to month. I checked into a few things and found out that President Obama had signed an executive order addressing the repayment of student loans. Because of this action, it looks as if my payments are only going to be $175 a month. The substantial savings will make it possible for me to buy a house and for us to live like a normal, middle-class American family!

I cannot stress how much this means to me—and, I know, to the many other young Americans who have been impacted as well. This is such a huge weight lifted off my shoulders, and I owe it all to President Obama. The fact that he understands and cares enough to take action is so absolutely commendable that I cannot express it in words.

I just wanted this story to be told, and I hope the difference the President has made in my life and the lives of so many others has a positive impact on his re-election campaign. I can tell you right now that there has never been any doubt as to who I will be voting for in November: Obama-Biden 2012 all the way!

Thank you for your time.

Best regards,

Tiffany, Montana
Did you see what happened there?

A single mom was worried about how she would pay her student loans. But it states right there in her letter she made this decision to go in debt. Her employer was paying for school. It was going to be paid for!

But no. She wanted to work for a nonprofit organization and was willing to take a $20,000 bath plus interest on it because the non-profit organization could not afford to pay for her education. She was worried about the $500 a month payment. But praise Obama! His executive order makes her payments $175 a month.

If you calculate how long it will take to pay back $20,000 at $500 a month, without interest, it is 3 years 4 months. The same debt at $175 a month, no interest, is 9 years 7 months. I don't know what the interest is on these loans, but it will extend how long it will be to pay back the loans.

She is so happy because it means she can now buy a house.


While she is paying off a loan for the next 10 years she wants another one for a house. By the time her student loans are paid off her son will be 16 or 17.

My gut says that if she stayed with the first employer not only would she have no student loan debt but more upward financial mobility. If a company invests in you, they have the money and desire to keep you.

How good are the financial opportunities at a nonprofit organization?

Once her son is ready for school, do you really think she'll be able to help pay for it under the economic path she chose? But I suppose that's okay. Her son can take out a student loan too.

After all. Working for a nonprofit organization during a recession couldn't possibly be risky, could it?



  1. You have to wonder - where do the Company A profits go? Enriching a small handful of "smart" people - rightfully so - but do their ability to spin a profit buy them a right to hold the life and happiness of a young mother hostage? Or to dictate how she applies her skills? Or what decisions she is allowed to make?

    Conversely, you can't argue that the nonprofit will not be able to afford or sustain her - perhaps with her attention it will - or perhaps it will turn her into an entrepreneur and eventually an employer, rather than a lemming being "whored out" to company A.

    1. Wow conehead...I think you really missed the ENTIRE context of this letter!
      Try reading it again.

    2. Company A is not holding this single mother hostage. She can take her skills and her debt wherever she wishes. Last time I checked, most for profit companies don't even have barbed wire around their facilities to keep the employees inside.

      For what it is worth, this woman needs a lot more experience and understanding as to how things actually work before she could ever be turned into a successful entrepreneur. The very essence of successful entrepreneurship is understanding how to make a profit.

      Of course, single mothers, by definition, don't tend to have much financial sense, otherwise they wouldn't be single mothers.