Dear Mr. President,
I really have to admire the students in the UK demonstrating against rising University fees. I don't support acts of violence and I do hope that no one is hurt, but these youth have a right to be upset by their government's decision. While petty and spiteful individuals with experience in the American system of higher education might get some satisfaction seeing our British counterparts forced to face the unreasonable burden of educational expenses that we've been struggling with for a generation, I don't think gloating is particularly productive for either nation. The fact is that American students should have been protesting tuition hikes decades ago. The British students taking to the streets now may not get their way, but at least they won't look back and wonder why they capitulated without a fight. Here, the system has failed us, continues to fail us, but we remain largely silent.
I'm lucky, this year. I qualified for excellent financial aid- not because of a drastic change in my financial circumstances, but because I finally became old enough for the government to stop expecting my parents to support me. A system such as this-one which willfully disregards the economic realities faced by most students and their families- cannot stand for long. A society is stronger and healthier when its people are educated. I don't think that making it more difficult for many and outright impossible for some to access higher education is a socially, fiscally or morally responsible policy.
I appreciate that under your administration paying for college has gotten easier for American students, especially those from low-income backgrounds. Unfortunately, economic conditions and the poor priorities of those who write the Federal and State budgets have led to decreases in funding for public Universities across the country, forcing staff and spending cuts that decrease the value of the education provided at these institutions even as tuition steadily rises. Britain is joining the US in our struggle to balance the desire to offer the best educational institutions in the world and the inability of individuals (or, increasingly, governments) to pay for it. A British friend and I were discussing this today and he pointed out that the money raised by the increase in University fees might help British Universities hire better educators and provide more resources for those attending. Some good might possibly come of this, but it will inevitably be at the expense of the poorest students who will no longer be able to access these resources at all. In the end we both sympathized with the angry, rioting students who'd just seen their educational hopes and dreams lost to the recession.
As I glimpse the light at the end of the dark tunnel that is finals week, I have to say I'm more grateful than ever for the assistance I'm receiving this year. I know I could not be in school without it. I can't say for sure that our country will benefit in equal measure once I get my degree, but I do know that without it I would feel stuck, lost, unable to live up to my full potential.
So as I watch the news from the UK and hope against hope that students there don't end up struggling the way I did as a younger undergraduate student to pay their expenses, I can't help but wonder if those of us who aren't struggling to pay our tuition ought to be doing more to help advocate for those at home and abroad who are.
Respectfully yours,
Kelsey
Showing posts with label debt. Show all posts
Showing posts with label debt. Show all posts
Wednesday, December 15, 2010
Friday, April 2, 2010
Day 92- Breaking up with JP Morgan Chase
Dear Mr. President,
I joined a Credit Union today. As soon as my account is set up, I'm closing my old account with Chase. This decision was based on a number of factors, but the business practices of the Credit Union, which by nature is not for profit, has no shareholders, and does not wreak havoc on the financial system through unscrupulous lending and manipulative financial practices. I say this as a complete layman; economic issues are not my strong point, at all. I'm terrible with money, terrified of investing or even saying the word "stocks" and I generally only check my bank account balance after an immense inner struggle about how much I really want to know about my finances. I was finally able to extricate myself from credit card debt, and now that I have some degree of confidence in my financial stability, I want to put my money where my mouth (not to mention personal belief) is. I don't make anywhere close to $30,000 a year, and the money I do make can go to much better things than the profit margins of Chase Bank.
Perhaps it is my ignorance about most financial matters, but I find the kind of gimmicks Chase (and other banks like it) use to attract customers truly off-putting. Keep using your debit card, because you never know when we're going to give you a free purchase! The misleading way that their "overdraft protection service" has been advertised in the last few months is a perfect example of this. With this "service", customers are allowed to spend more than they have- at $31/transaction. A card without this "protection" will merely be declined if more money than is present in the account is charged. This makes sense. This alerts people to when their account balance isn't what they think it should be- always an indication that something, either their calculations or their charges, is wrong. Chase decided to wage an ad campaign to encourage people to keep being charged not to know their account was overdrawn- likely because overdraft fees made up a significant portion of the company's profits. It seems as though Chase is directly targeting vulnerable consumers who don't realize they're being taken advantage of by advertising this fee as some kind of protection.
Anyway, I feel that the Credit Union I joined today is much more honest in its practices and works to serve its members and its community, not its bottom line. That's important to me as a consumer, but not nearly as important as the work that went into making this decision. I've made a conscious effort to learn more about the financial system, the way banks and credit unions work, and the way I budget, spend, and save my own money. The absolute best way to avoid being taken advantage of by the powerful is through education and awareness, and I feel that today was a step in that direction. I will not be hoodwinked by slogans and PR; I will not be sucked in by gimmicks and games; my financial health is too important for me to trust it to others. It is my future, my freedom, and my security, as an independent individual, and I will not allow it to be threatened by my own ignorance.
I feel that this kind of financial information would be a valuable addition to basic high school education. We should prepare students for the realities of the financial decisions they'll be making; decisions about student loan debt and credit cards and responsible use of bank accounts. Preparing students, giving them all the information they need to make informed decisions and to protect themselves against manipulation is an important aspect of education, and this latest financial crisis clearly demonstrates how urgently this awareness is needed.
Respectfully yours,
Kelsey
I joined a Credit Union today. As soon as my account is set up, I'm closing my old account with Chase. This decision was based on a number of factors, but the business practices of the Credit Union, which by nature is not for profit, has no shareholders, and does not wreak havoc on the financial system through unscrupulous lending and manipulative financial practices. I say this as a complete layman; economic issues are not my strong point, at all. I'm terrible with money, terrified of investing or even saying the word "stocks" and I generally only check my bank account balance after an immense inner struggle about how much I really want to know about my finances. I was finally able to extricate myself from credit card debt, and now that I have some degree of confidence in my financial stability, I want to put my money where my mouth (not to mention personal belief) is. I don't make anywhere close to $30,000 a year, and the money I do make can go to much better things than the profit margins of Chase Bank.
Perhaps it is my ignorance about most financial matters, but I find the kind of gimmicks Chase (and other banks like it) use to attract customers truly off-putting. Keep using your debit card, because you never know when we're going to give you a free purchase! The misleading way that their "overdraft protection service" has been advertised in the last few months is a perfect example of this. With this "service", customers are allowed to spend more than they have- at $31/transaction. A card without this "protection" will merely be declined if more money than is present in the account is charged. This makes sense. This alerts people to when their account balance isn't what they think it should be- always an indication that something, either their calculations or their charges, is wrong. Chase decided to wage an ad campaign to encourage people to keep being charged not to know their account was overdrawn- likely because overdraft fees made up a significant portion of the company's profits. It seems as though Chase is directly targeting vulnerable consumers who don't realize they're being taken advantage of by advertising this fee as some kind of protection.
Anyway, I feel that the Credit Union I joined today is much more honest in its practices and works to serve its members and its community, not its bottom line. That's important to me as a consumer, but not nearly as important as the work that went into making this decision. I've made a conscious effort to learn more about the financial system, the way banks and credit unions work, and the way I budget, spend, and save my own money. The absolute best way to avoid being taken advantage of by the powerful is through education and awareness, and I feel that today was a step in that direction. I will not be hoodwinked by slogans and PR; I will not be sucked in by gimmicks and games; my financial health is too important for me to trust it to others. It is my future, my freedom, and my security, as an independent individual, and I will not allow it to be threatened by my own ignorance.
I feel that this kind of financial information would be a valuable addition to basic high school education. We should prepare students for the realities of the financial decisions they'll be making; decisions about student loan debt and credit cards and responsible use of bank accounts. Preparing students, giving them all the information they need to make informed decisions and to protect themselves against manipulation is an important aspect of education, and this latest financial crisis clearly demonstrates how urgently this awareness is needed.
Respectfully yours,
Kelsey
Friday, February 19, 2010
Day 50- Why I write
Dear Mr. President,
This is the fiftieth letter I've sent you. I've written you every day this year, and have every intention of continuing to do so for the duration of 2010. This daily ritual has become a grounding, calming constant. I read the news, or your books, or the political blogs, and I try to think of something relevant to say. Often it comes out less eloquent than I wish, often I struggle, wondering what a person like I could possibly have to say to a person like you. Generally I am comforted by the thought that, for all of your wisdom and experts and resources, one thing you can not do is lead an average life. You cannot know how an average person lives and how your policies relate to them, unless we tell you. I understand that you get about 40,000 letters a day, so I suppose lending my voice and my narrative to those of the masses can't hurt, and might even give you a clearer picture. Most certainly, I gain more from the writing than you would from the reading of these letters.
Today the White House blog posted about the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, warning consumers to prepare for a better relationship with their credit card companies, starting Monday. Just last night I was struggling with my own card, so this caught my attention. After receiving my tax return, I paid off the entire balance on my card- not an insignificant amount- and I cannot convey what an incredible feeling this was. I was so proud, so happy to finally be done with all of that debt. Then, last night, I noticed it had a balance, once again, despite never having used it. My bank had levied more than $30 in fees, because of a $.27 cent charge! I paid the card off, again, called the company and angrily demanded that they close the account entirely. I now have no credit card.
Reading through the proposals in the CARD act, I have to say I may consider signing up for one, from a different company, after the law goes into effect. My parents would argue that they are good to have in emergencies, and now, at least, I feel the new regulations will protect me from deceptive terms and unfair fees. I think this new law will do a lot of good, and will help many members of my generation avoid ending up, as our parents have, drowning in debt they can't hope to repay. Thank you for your efforts in passing it.
Respectfully yours,
Kelsey
This is the fiftieth letter I've sent you. I've written you every day this year, and have every intention of continuing to do so for the duration of 2010. This daily ritual has become a grounding, calming constant. I read the news, or your books, or the political blogs, and I try to think of something relevant to say. Often it comes out less eloquent than I wish, often I struggle, wondering what a person like I could possibly have to say to a person like you. Generally I am comforted by the thought that, for all of your wisdom and experts and resources, one thing you can not do is lead an average life. You cannot know how an average person lives and how your policies relate to them, unless we tell you. I understand that you get about 40,000 letters a day, so I suppose lending my voice and my narrative to those of the masses can't hurt, and might even give you a clearer picture. Most certainly, I gain more from the writing than you would from the reading of these letters.
Today the White House blog posted about the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, warning consumers to prepare for a better relationship with their credit card companies, starting Monday. Just last night I was struggling with my own card, so this caught my attention. After receiving my tax return, I paid off the entire balance on my card- not an insignificant amount- and I cannot convey what an incredible feeling this was. I was so proud, so happy to finally be done with all of that debt. Then, last night, I noticed it had a balance, once again, despite never having used it. My bank had levied more than $30 in fees, because of a $.27 cent charge! I paid the card off, again, called the company and angrily demanded that they close the account entirely. I now have no credit card.
Reading through the proposals in the CARD act, I have to say I may consider signing up for one, from a different company, after the law goes into effect. My parents would argue that they are good to have in emergencies, and now, at least, I feel the new regulations will protect me from deceptive terms and unfair fees. I think this new law will do a lot of good, and will help many members of my generation avoid ending up, as our parents have, drowning in debt they can't hope to repay. Thank you for your efforts in passing it.
Respectfully yours,
Kelsey
Sunday, February 7, 2010
Day 38
Dear Mr. President,
The bipartisan summit on health care is a significant risk. While I feel that you did very well in your open q & a with the republicans, there's no telling how the other democrats will come across. That being said, I'm glad you're doing it. I'm hopeful that it will be politically beneficial, and that it will move the health care debate forward. The other night, while discussing health care policy with one of my like-minded friends, she expressed concern that the passage of the current bill, which we both see as no solution but rather a step in the right direction, would breed complacency on the issue. I may have disagreed with her, but part of me fears she is right. I believe that the reform bill is important enough to pass now, but I also believe that, no matter how tired people are of the health care debate, the bill will not go far enough to help the people who need it the most. My hope is that, once the bill is passed and the whole system doesn't collapse, people will allow more aggressive reform.
I don't have health insurance, Mr. President. My employer offers it, but I've only recently become eligible for it. To make matters worse, recent years have seen premiums more than double, while co-pays increase and benefits decrease. None of the girls I live with are able to afford health insurance. Luckily for me, the last time I got sick, I was on vacation in Canada. The doctor I saw explained that, in his country, they tax things that make you sick, like cigarettes, alcohol, soda and fast food. He called this a "sin tax" and suggested, rather smugly, "Maybe if you did this in America, you could afford to give every one health insurance." I don't know if he was under the impression that a 23-year old bookstore employee had much say in national health care policy, or if he was just being condescending, but I was too grateful for the care I received to really mind the lecture.
I know proposing something like "sin tax" would be horribly unpopular here. While I may find it perfectly logical to increase the tax burden of those who themselves become burdens on the system through unhealthy behavior, I understand enough about human nature to know how difficult it would be to pass a tax on soda, for example. What about ending the government subsidies of corn and soy? Instead of punishing the taxpayer, we ought to end our outdated agricultural policies that discourage the small farmer and crop-diversity. This would help reduce the surplus of corn and soy derivatives that make processed food so cheap, discouraging consumption without actually taxing the least healthy foods.
But not all health care is about lifestyle choice. People get sick, people get injured, people have to have access to medical services, without the fear of financial ruin. I hope the summit helps pass the reform bill, and that it changes the way we approach health care. But I hope that those of us still waiting for real health care solutions won't be forgotten. It's more than politics, or even the long-term financial interest of our country. It is a matter of national pride. No one in America should suffer or die because they don't have enough money for treatment. No one in America should be bankrupt because they are sick. I hope one day we have a system our doctors can be smug about, even to Canadian tourists.
Respectfully yours,
Kelsey
The bipartisan summit on health care is a significant risk. While I feel that you did very well in your open q & a with the republicans, there's no telling how the other democrats will come across. That being said, I'm glad you're doing it. I'm hopeful that it will be politically beneficial, and that it will move the health care debate forward. The other night, while discussing health care policy with one of my like-minded friends, she expressed concern that the passage of the current bill, which we both see as no solution but rather a step in the right direction, would breed complacency on the issue. I may have disagreed with her, but part of me fears she is right. I believe that the reform bill is important enough to pass now, but I also believe that, no matter how tired people are of the health care debate, the bill will not go far enough to help the people who need it the most. My hope is that, once the bill is passed and the whole system doesn't collapse, people will allow more aggressive reform.
I don't have health insurance, Mr. President. My employer offers it, but I've only recently become eligible for it. To make matters worse, recent years have seen premiums more than double, while co-pays increase and benefits decrease. None of the girls I live with are able to afford health insurance. Luckily for me, the last time I got sick, I was on vacation in Canada. The doctor I saw explained that, in his country, they tax things that make you sick, like cigarettes, alcohol, soda and fast food. He called this a "sin tax" and suggested, rather smugly, "Maybe if you did this in America, you could afford to give every one health insurance." I don't know if he was under the impression that a 23-year old bookstore employee had much say in national health care policy, or if he was just being condescending, but I was too grateful for the care I received to really mind the lecture.
I know proposing something like "sin tax" would be horribly unpopular here. While I may find it perfectly logical to increase the tax burden of those who themselves become burdens on the system through unhealthy behavior, I understand enough about human nature to know how difficult it would be to pass a tax on soda, for example. What about ending the government subsidies of corn and soy? Instead of punishing the taxpayer, we ought to end our outdated agricultural policies that discourage the small farmer and crop-diversity. This would help reduce the surplus of corn and soy derivatives that make processed food so cheap, discouraging consumption without actually taxing the least healthy foods.
But not all health care is about lifestyle choice. People get sick, people get injured, people have to have access to medical services, without the fear of financial ruin. I hope the summit helps pass the reform bill, and that it changes the way we approach health care. But I hope that those of us still waiting for real health care solutions won't be forgotten. It's more than politics, or even the long-term financial interest of our country. It is a matter of national pride. No one in America should suffer or die because they don't have enough money for treatment. No one in America should be bankrupt because they are sick. I hope one day we have a system our doctors can be smug about, even to Canadian tourists.
Respectfully yours,
Kelsey
Friday, January 29, 2010
Day 29
Dear Mr. President,
I filed my Tax return today, and, to my great surprise, I'm getting a refund more than double what I'd anticipated. This is largely due to the American Opportunity Tax Credit which was, surprise surprise, part of the stimulus bill. I'm going to use half of it to finally pay off my credit card. My best friend, upon hearing of my refund, exclaimed, "let's stimulate the economy!", so you can bet we'll be spending the other half more quickly than we should. I have to say, it's difficult not to feel happy with the Recovery Act when I have such tangible evidence of how I personally benefit from it. I'm a fairly well-informed person, and even I had no idea how much the Recovery Act was going to benefit me. I think, had it been explained better, more people would have supported it, and been happy with your administration's efforts.
Anyway, my worries about credit card and student loan debt, my anxiety about returning to school, my general stress about the state of my finances is greatly alleviated by all of this. Thank you so much. I'm generally not opposed to paying taxes, but I won't lie- it was nice not to pay so much this year. I'm still glad you didn't concede to Republican requests for an across the board tax cut in your discussion with them today. Not cutting taxes for the very wealthy, for people like my former CEO, is an incredibly sensible thing to insist upon, and I feel that you did explain this very well. You do a much better job of admitting mistakes, taking blame, and discussing the ideas of your political rivals than I feel President Bush ever did.
The coverage of the State of the Union address continues to be divided along ideological lines, which is upsetting but in no way surprising. Today I watched Jon Stewart mention his perception of your administration as being a third entity, being isolated from congressional Democrats and Republicans. I don't know how accurate his impression of this is, but I think it indicates the sense people have of the Democratic party being fractured so badly it is unable to effectively lead. I sincerely hope that your State of the Union address helped ease this, and that congressional Democrats rally to the pass the proposals you outlined in the speech. I would hate to lose control of the House or the Senate in November, but if the Democrats don't see the ramifications of their in-fighting and start governing more effectively, we deserve to.
Listening to your speech Wednesday, and your answers to the Republicans today, I have to say you sound just like you did in The Audacity of Hope and its nice to know you're still that optimistic. I can't speak for any one but myself, but for me, at least, that optimism seems to be catching.
Respectfully yours,
Kelsey
I filed my Tax return today, and, to my great surprise, I'm getting a refund more than double what I'd anticipated. This is largely due to the American Opportunity Tax Credit which was, surprise surprise, part of the stimulus bill. I'm going to use half of it to finally pay off my credit card. My best friend, upon hearing of my refund, exclaimed, "let's stimulate the economy!", so you can bet we'll be spending the other half more quickly than we should. I have to say, it's difficult not to feel happy with the Recovery Act when I have such tangible evidence of how I personally benefit from it. I'm a fairly well-informed person, and even I had no idea how much the Recovery Act was going to benefit me. I think, had it been explained better, more people would have supported it, and been happy with your administration's efforts.
Anyway, my worries about credit card and student loan debt, my anxiety about returning to school, my general stress about the state of my finances is greatly alleviated by all of this. Thank you so much. I'm generally not opposed to paying taxes, but I won't lie- it was nice not to pay so much this year. I'm still glad you didn't concede to Republican requests for an across the board tax cut in your discussion with them today. Not cutting taxes for the very wealthy, for people like my former CEO, is an incredibly sensible thing to insist upon, and I feel that you did explain this very well. You do a much better job of admitting mistakes, taking blame, and discussing the ideas of your political rivals than I feel President Bush ever did.
The coverage of the State of the Union address continues to be divided along ideological lines, which is upsetting but in no way surprising. Today I watched Jon Stewart mention his perception of your administration as being a third entity, being isolated from congressional Democrats and Republicans. I don't know how accurate his impression of this is, but I think it indicates the sense people have of the Democratic party being fractured so badly it is unable to effectively lead. I sincerely hope that your State of the Union address helped ease this, and that congressional Democrats rally to the pass the proposals you outlined in the speech. I would hate to lose control of the House or the Senate in November, but if the Democrats don't see the ramifications of their in-fighting and start governing more effectively, we deserve to.
Listening to your speech Wednesday, and your answers to the Republicans today, I have to say you sound just like you did in The Audacity of Hope and its nice to know you're still that optimistic. I can't speak for any one but myself, but for me, at least, that optimism seems to be catching.
Respectfully yours,
Kelsey
Friday, January 15, 2010
Day 15
Dear Mr. President,
It is difficult to think of anything to write about besides Haiti. I've donated via SMS to the red cross, I've read the news all day, I've worried and worried and worried. Not particularly helpful, to be honest. I don't think I can write to you, who is doing so much, about something I can do next to nothing to help. So this letter is going to be about the Financial Crisis Responsibility Fee, which I just heard about from the e-mail that the Vice President's office sent out.
I already added my name to the petition, and I hope that the tremendous popular support for this idea is enough to get it passed over the objection of the banking lobby. I'll be writing my congressman (not that contacting Rick Larsen has done me much good in the past) and state senators as well. Don't back down on this, sir. Conservatives are saying it is a mere distraction. Michelle Malkin claims that the fee will be passed on to consumers, which may be true, but seems like it should be an indictment of the banks, not the government. If my bank tries to charge me more, I will simply take my business elsewhere. I say all of this as some one with a layman's understanding of economic policy. I could be entirely wrong, but I think a number of Americans are confused about the nuances of this, and we are putting our trust in you and your administration not to take advantage of this crisis for political gain.
Tomorrow I return to work after 2 days off, and as much as I'm dreading getting up early and dealing with the tedious and often absurd public, I'm thankful to be among the employed. I'm still worried about the economy, but I think that things will slowly get better. Bearing in mind my admitted lack of economic expertise, I've previously mentioned John Edward's campaign promise to reform college financial aid systems and work to lessen current student debt. Maybe this is oversimplifying things, but wouldn't it stimulate the economy if the recently graduated who are struggling with loan debt could spend the money elsewhere? Or invest in their own futures, by purchasing houses or starting businesses? If we can bail out banks and auto companies, why not students who are facing unprecedented amounts of student loan debt? Especially as much of that debt is the product of a system already exposed to be rife with corruption and predatory practices. I don't know, maybe it's a terrible idea, but it seems to me that as a society, we benefit more from a well-educated youth with less debt than we do from lending institutions making huge profits off of the dreams of the middle class.
I don't know. It seems frivolous to be asking about debt relief while thinking about the conditions in Haiti, or in any number of places across the globe. Perhaps this is a discussion for another day.
Respectfully yours,
Kelsey
It is difficult to think of anything to write about besides Haiti. I've donated via SMS to the red cross, I've read the news all day, I've worried and worried and worried. Not particularly helpful, to be honest. I don't think I can write to you, who is doing so much, about something I can do next to nothing to help. So this letter is going to be about the Financial Crisis Responsibility Fee, which I just heard about from the e-mail that the Vice President's office sent out.
I already added my name to the petition, and I hope that the tremendous popular support for this idea is enough to get it passed over the objection of the banking lobby. I'll be writing my congressman (not that contacting Rick Larsen has done me much good in the past) and state senators as well. Don't back down on this, sir. Conservatives are saying it is a mere distraction. Michelle Malkin claims that the fee will be passed on to consumers, which may be true, but seems like it should be an indictment of the banks, not the government. If my bank tries to charge me more, I will simply take my business elsewhere. I say all of this as some one with a layman's understanding of economic policy. I could be entirely wrong, but I think a number of Americans are confused about the nuances of this, and we are putting our trust in you and your administration not to take advantage of this crisis for political gain.
Tomorrow I return to work after 2 days off, and as much as I'm dreading getting up early and dealing with the tedious and often absurd public, I'm thankful to be among the employed. I'm still worried about the economy, but I think that things will slowly get better. Bearing in mind my admitted lack of economic expertise, I've previously mentioned John Edward's campaign promise to reform college financial aid systems and work to lessen current student debt. Maybe this is oversimplifying things, but wouldn't it stimulate the economy if the recently graduated who are struggling with loan debt could spend the money elsewhere? Or invest in their own futures, by purchasing houses or starting businesses? If we can bail out banks and auto companies, why not students who are facing unprecedented amounts of student loan debt? Especially as much of that debt is the product of a system already exposed to be rife with corruption and predatory practices. I don't know, maybe it's a terrible idea, but it seems to me that as a society, we benefit more from a well-educated youth with less debt than we do from lending institutions making huge profits off of the dreams of the middle class.
I don't know. It seems frivolous to be asking about debt relief while thinking about the conditions in Haiti, or in any number of places across the globe. Perhaps this is a discussion for another day.
Respectfully yours,
Kelsey
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