"Try 1 percent solution for student loans" Says Jesse Jackson in a Chicago Sun Times Article

Try 1 percent solution for student loans

BY JESSE JACKSON
The debate on the recovery has begun in earnest. The $825 billion plan introduced in the House is a good beginning. It makes a down payment on investments vital to our future -- in new energy, health-care efficiency, education. It provides assistance for those hit hardest by the crisis. It provides a tax break for the vast majority of Americans.

Republican leaders have reacted in partisan rather than patriotic form. Their objections are simply wrongheaded. House Minority Leader John Boehner says the plan is too large, spends too much and has too few tax breaks for business. In fact, the reverse is true. If anything, given the accelerating downturn, the plan is too small and contains too many business tax breaks that are notoriously ineffective at producing jobs.

To help get the economy moving, Congress would be well advised to pass -- either as part of the recovery plan or separately -- a bold initiative to help make college and advanced training affordable. I'd suggest a simple proposition: Let's make college loans available to students on the same terms that the banks receive.

Banks now borrow money at about 1 percent, even as the Treasury and Federal Reserve pour in literally trillions in equity, loan guarantees, credit swaps and the like to keep them from going belly up. Over the last few decades, students have gone from paying for college with two-thirds grants and one-third loans to the reverse, with most racking up tens of thousands of dollars in debt to stay in school. They are forced to borrow -- even on the subsidized loans -- at rates of 4 percent to 5 percent. When those limited funds are exhausted, they are forced into a private market, where interest rates are even higher, and sometimes end up relying on credit card debt, with rates more than 20 percent.

With the recession spreading, students are struggling to cobble together the funds to stay in school. Parents' contributions get slashed when they lose their jobs. Grant aid doesn't make up the difference. The Economic Recovery Plan would increase the maximum Pell grant by $500, but that doesn't make a dent.

There is real perversity here. General Motors is offering car loans at zero percent while students seeking to get an education must pay 5 percent to 6 percent. Students are essentially subsidizing the banks that drove us into this ditch, even as those banks continue to pay multimillion-dollar bonuses to the very leaders who are responsible.

Thus far, the Federal Reserve and the Treasury keep spraying the leaves and ignoring the roots. They keep bailing out the captain's quarters while ignoring the hole at the bottom of the boat.

We should go another way. Michelle Obama has noted the harsh burdens that students are faced with. "Salaries don't keep up with the cost of paying off the debt, so you're in your 40s, still paying off your debt at a time when you have to save for your kids." She and Barack were still paying off their loans in their 40s, until his best-selling books got them out of the hole. And they were successful graduates of Harvard Law School.

Now the situation is much worse. Talented students are forced to drop out. Schools without large endowments are making draconian cuts and raising tuitions.

Young people are the nation's most valuable asset; their education is essential to our future. Their potential should not be snuffed out, their dreams shattered because of an economic crisis they didn't cause and cannot avoid. We shouldn't ask them to subsidize the very banks that caused the mess. It's time for a 1 percent student loan program.

Black Speaker Dr Boyce Watkins: Managing Your Credit

Jesse Jackson, Dr Boyce Watkins Speak on Obama

I'm set to appear on the Jesse Jackson Show tomorrow morning at 8 am, along with one of my esteemed colleagues, Dr. Marc Lamont Hill. I am sure I don't have to tell you the topic of the discussion, since we all know that Rev. Jackson's unfortunate slip on Barack Obama has kept the world churning as of late.

I should make these quick points on the issue, so you can understand my perspective. This point of view came from personal reflections, extensive conversations with individuals in media, politics, and leadership and even a good conversation with my mama. I love my mama. What is most interesting is that she complains about Jesse Jackson more than she compliments him (the same for my father, a high ranking police official). But she made a good point that it's easy for us to attack people for what they are not doing when the truth is that most of us aren't doing anything. Remember that Jesse was #3 on the list of world leaders most likely to be assassinated (behind the President and the Pope). He has sacrificed for our community, and although I have critiqued him myself in the past, I consider him to be an elder worthy of respect. It was his landmark run for the White House that cleared the path for Senator Obama to do what he is doing today. I will never forget that.

Here are my thoughts:

1) I am not sure if we should be so quick to believe that a Black president can replace every Black leader in America. As I've asked before, who is going to show up for the next Hurricane Katrina or Sean Bell shooting? I will give you a hint, it may not be Barack Obama (his response to the Sean Bell shooting was quite weak, to be honest). This doesn't mean that Obama shouldn't get our vote, but you can't throw out your mama just because you have a new daddy. The fight for Black people should be multi-dimensional in nature.

2) Let's not forget that there is a difference between the hatred Rev. Jackson is receiving in the blogosphere and so-called mainstream media (almost none of which is owned by Black people) vs. what is happening in the street. When I put my ear to the street, there is a concern that Senator Obama is not prepared to truly represent the interests of rank and file, working Black folks. Not the hoity-toity of us who went to college and make enough money to (uncomfortably) afford the high price of gas. But rather, those who don't worry about the price of gas because they can't afford to buy a car. This reflects a clear division between the haves and have-nots, implying that we are as diverse as any other group of people. What is most challenging for me is that while I supported many of Senator Obama's positions on the BET shoot we did last weekend, I am concerned that other interest groups may move him toward anti-Black agendas in the White House. Jesse may have wanted to cut his n*tts off, but it appears that others may have his n*tts in a vice grip already (excuse my French, but I have to tell it like it is).

3) Senator Obama (again, whom I support) is, in many ways, like most other politicians. The reason he felt comfortable stereotyping black men (whether you agree that his comments were off base or not) and no other ethnic group is because he knew there would be little negative political consequence for doing so, but tremendous benefit from those who already think Black males are immoral (note that Bill O'Reilly congratulated him on his speech). He would not, however, take the same tone with AIPAC (the pro-Israel lobby) no matter how questionable their policies (they could have a 100% fatherless rate and he wouldn't say a word). Why is that? Because they are mobilized, organized and well-funded. African Americans must become engaged and educated in the political process in order to become equally funded and equally mobilized to ensure that our interests are protected. Asking Barack Obama to help black folks is like borrowing money from a loving relative: charity will get you so far, but ultimately, you have to make it worth their while to keep supporting you. It would be selfish and silly to expect otherwise.

4) If you want to be nit-picky about Senator Obama's position on Black fathers, we cannot presume that he "can relate to the issue" because he was abandoned by an African American man. Obama's father was KENYAN. So, as a black man, it's hard enough to defend the silly stuff that happens here without being forced to account for what someone did across the sea. That is like holding white males accountable for what a man did in the Ukraine.

5) I would not presume that Rev. Jackson's challenge to Obama implies that he doesn't advocate for personal responsibility. Anyone who has heard Rev. Jackson speak knows that he is very conservative in his value systems. Actually, the only things that make him liberal are that he speaks for black people, stands up for the poor, and believes in stronger gun control. I don't defend his remarks against Obama, but my belief is that, again, we should think carefully before trading in 40 years of sacrifice for a few speeches on hope and change. I will vote for Obama, but I want to wait and see if he does the right thing for us, or allows other groups (some of whom dislike African Americans) to control his actions. What you believe is not as important as what you do.

Finally, let's love ourselves. I am not a fan of the idea of denouncing strong blackness just because the words make others uncomfortable (that doesn't include Rev. Jackson's comments this week, but rather, the words of Jeremiah Wright and others who speak out on racial inequality). Getting into the big white house on the hill is a good thing, but we must remember that the ultimate goal is to get off the plantation.

Black in America: Boyce Watkins on Jesse Jackson, Barack Obama controversy

In this video, Dr. Boyce Watkins speaks on the controversy in which Rev. Jesse Jackson says that he wants to cut off Senator Obama's "nutts".

Dr. Watkins is a regular guest on CNN, FOX News, BET, CBS, ESPN, and other national media. He was the source of some controversy with Bill O'Reilly from the O'Reilly Factor, and has been a guest on other Fox Shows such as Hannity & Colmes. He has also publicly disputed Bill Cosby for stating that african-american youth and the hip hop generation are not very productive. Watkins wrote "What if George Bush were a Black Man?" and "Everything you ever wanted to know about college", which he argues is an appeal to the MTV generation to look past 50 Cent, Lil Wayne, TI, Kanye West and others to explore their educational potential. Dr. Boyce is a Finance Professor at Syracuse University and a graduate of The Ohio State University. He recently spoke at The University of Kentucky and demanded that they increase their numbers of black students and faculty. He was also one of the instrumental black leaders behind the scenes during the cases with the Jena 6, Don Imus and Michael Vick. He worked closely with Rev. Al Sharpton and Rev. Jesse Jackson, appearing on the air with them to suggest strategies to get Imus off the air. It was Dr. Watkins' idea to challenge his corporate sponsors that led to Imus' dismissal. He was also outspoken on Barry Bonds' situation and the OJ Simpson trial. Watkins argues that Barry Bonds might be a jerk, but his alleged indiscretion is no worse than the evidence against Lance Armstrong for the use of performance enhancing drugs. He made his comments on the Tom Joyner Morning Show, The Wendy Williams Experience, CNN, FOX, BET, CBS and other networks.