Sustainable help...
By vanny
@vandana7 (98827)
India
June 19, 2010 11:07pm CST
Now I know I have a lot of responses to catch up with - about 20 in all. And I should be attending to them first before starting another discussion.
But this one is inspired by a kiddo who has his heart in the right place. And this is a serious discussion - who cannot be serious - are also welcome. 
We were discussing student loans. :)
What if student gets an opportunity to cover another student's education expenses once he gets his employment - instead of paying interest to banks.
Ok - I am not good at expressing -
Suppose I was a student - I take loan from a social organization that offers such help. After I get my employment, I select one of the student from the data base of the social organization and pay for his or her education. Hopefully, I have got my point across now. :) Finance would come from insurance companies who would insure the recovery. Strict legislation would be necessary to prevent defaults, and the debt should be made inheritable, with strict repurcussions if it is not cleared by specified time.
Same with personal loans.
Home loans cannot come under this category as price of homes moves much more, so it would be unfair to impose such condition unless some slabs can be predetermined. Yeah, I thought a lot about all this.
Why do we let middlemen like banks earn in such simple transactions? The interest is compounded at quite high rate on such loans - for those who didnt know this.
Economically, this should leave enough monies in the hands of banks to keep inflation down! Everything would be more affordable. Nobody would have to lose homes, as home loans too would carry lower interest rates.
Saphy 
Every now and then I do get such attacks, sweetie! 
We were discussing student loans. :)
What if student gets an opportunity to cover another student's education expenses once he gets his employment - instead of paying interest to banks.
Ok - I am not good at expressing -
Suppose I was a student - I take loan from a social organization that offers such help. After I get my employment, I select one of the student from the data base of the social organization and pay for his or her education. Hopefully, I have got my point across now. :) Finance would come from insurance companies who would insure the recovery. Strict legislation would be necessary to prevent defaults, and the debt should be made inheritable, with strict repurcussions if it is not cleared by specified time.
Same with personal loans.
Home loans cannot come under this category as price of homes moves much more, so it would be unfair to impose such condition unless some slabs can be predetermined. Yeah, I thought a lot about all this.
Why do we let middlemen like banks earn in such simple transactions? The interest is compounded at quite high rate on such loans - for those who didnt know this.
Economically, this should leave enough monies in the hands of banks to keep inflation down! Everything would be more affordable. Nobody would have to lose homes, as home loans too would carry lower interest rates.
Saphy Every now and then I do get such attacks, sweetie! 1 person likes this
8 responses
@msfrancisco9369 (10002)
• Boston, Massachusetts
20 Jun 10
Hi V,
This is really a very serious discussion but i could not comment on tha far. I am not so familiar with this kind of arrangement in banks. I just hope that students who are deserving will be given the scholarship thsat they need and/or the loan that will make them finish their studies and get a degree and be able to pay the loan later once they land a job. But i hope for a lesser interest.
Stay healthy friend!
@consultrainer (4992)
• India
20 Jun 10
my respect doubled! .. 
Glad to associate with you here in mylot dear friend. MsFrancisco...
Glad to associate with you here in mylot dear friend. MsFrancisco...@msfrancisco9369 (10002)
• Boston, Massachusetts
20 Jun 10
Hi Consultrainer,
I sponsored a student when i arrived from work in the United States. I spent for her full Masters expenses and last march she graduated with Masters in social work with flying colors. It always feel good to help people deserving in life for a good education.
THanks for the affirmation about my response. I hope Vanny will stay fine!
@vandana7 (98827)
• India
20 Jun 10
Hi Ms,
That is so sweet angel! :) Yeah it feels good to do that, doesnt it? :)
@CT
I am asking for refundable loan!!! Scholarships need to be phased out!!!
The kiddo I was talking about mentioned something about offering free software. I told him look it is all very well offering that but the biggest beneficiary would be the bigger companies as they have enough resources (manpower, machines, and money). They will use your free software to improve their bottomline (no pun intended), and use that money to buy out smaller software companies (acquisiton - expansion). Once they grow big, they will extract more from existing employees, who will be afraid of unemployment and will be willing to do it. When this happens, few employees become dispensable, effectively increasing unemployment. I dont believe in free stuff like that. It is one thing to do it on personal level, it is another thing to do it at public level. :)
You got me all wrong CT!!!! PLEASE READ AND UNDERSTAND THE IMPLICATIONS.
I did warn this is a serious discussion!!!! 
That is so sweet angel! :) Yeah it feels good to do that, doesnt it? :)
@CT
I am asking for refundable loan!!! Scholarships need to be phased out!!!
The kiddo I was talking about mentioned something about offering free software. I told him look it is all very well offering that but the biggest beneficiary would be the bigger companies as they have enough resources (manpower, machines, and money). They will use your free software to improve their bottomline (no pun intended), and use that money to buy out smaller software companies (acquisiton - expansion). Once they grow big, they will extract more from existing employees, who will be afraid of unemployment and will be willing to do it. When this happens, few employees become dispensable, effectively increasing unemployment. I dont believe in free stuff like that. It is one thing to do it on personal level, it is another thing to do it at public level. :)
You got me all wrong CT!!!! PLEASE READ AND UNDERSTAND THE IMPLICATIONS.
I did warn this is a serious discussion!!!! 
@Hatley (163781)
• Garden Grove, California
20 Jun 10
hi vandy that all sounds well thought out. What a kind thing that'would be to help another student once this student got his employment. His education all paid for financed by insurance company.that is all set up
so well. I think personal loan should be set up in such a way that the loaner and loanee agree on repayment and get it down in writing,.The few times I loaned money to someone I got one payment and that was that. I soon learned not to be so trusting and not to loan anything to anyone without something in writing.
@consultrainer (4992)
• India
20 Jun 10
you too are too old., dear HATLEY.. with all respect to your intelligence and patience..
you are forgetting that BANKS and LOANS are a BUSINESS. when the governments are not bothering to help.. why would a BUSINESS venture, who vie and die for profits.. and increase in share values.. why would they even bother.
don't give us youngsters false hopes... 
@vandana7 (98827)
• India
20 Jun 10
@CT - you are so negative!!!!
Ill mannered as well!!! You'd be the first one I'd disqualify for such loan - for talking disrespectfully to my sweetest friend!!!
How dare you call her old!!! She makes more sense than most youngsters out here!! Check her responses and you'd know what I am talking!!!
@Hatley - yes - personal loans at personal levels need to be banned to prevent those heart burns, and unnecessary differences. Yeah, people do cheat. Wish they wouldnt. :( That is why when it gets organized with proper legal backing, cheaters would cease to be cheaters. If it becomes illegal, nobody would ask you to loan, isn't it? :)
How dare you call her old!!! She makes more sense than most youngsters out here!! Check her responses and you'd know what I am talking!!!
@Hatley - yes - personal loans at personal levels need to be banned to prevent those heart burns, and unnecessary differences. Yeah, people do cheat. Wish they wouldnt. :( That is why when it gets organized with proper legal backing, cheaters would cease to be cheaters. If it becomes illegal, nobody would ask you to loan, isn't it? :)@consultrainer (4992)
• India
20 Jun 10
i would eagerly wait for my dear old-friend HATLEY to comment back on my observation.. till then, I am silent.
@Buchi_bulla (8298)
• India
25 Jun 10
If this idea is inmplemented, then our country will become 100% literate. Many Scientists, doctors and engineers will emerge from the colleges every year. But how many will extend the same loan facility to others from out of these people? Who will be recovery agents? Who will back up these loans and provide Insurance for the loan? Though the idea looks great, implementation will be difficult Vandana.
@vandana7 (98827)
• India
25 Jun 10
Yeah - just imagine how many brilliant people we may be losing because of financial problems. Instead, we may be adjusting to mediocre stuff! Something is brewing up in my brain. I am sure eventually it will come out clearly. But the big thing is - I believe it is possible and it is possible with all kind of charities. :) Thanks for supporting me Buchi. :) Could always trust you. :) How are you doing? :)
@dawnald (85135)
• Shingle Springs, California
24 Jun 10
Ideally, since there is enough to go around, there should be a barter system, and everybody who is willing to study should be able to get an education without beggaring themselves or their parents to do it...
@vandana7 (98827)
• India
25 Jun 10
Can you explain this idea Dawny? :)
I personally think that everybody should have equal opportunities as far as education is concerned. Finance should not be a hurdle, and competitive exams only breed corruption. So it should be as per aptitude rather than anything else.
@sunnycool (12714)
• India
20 Jun 10
This seems to be really good but it would fail when it comes to reality.Do you really think some one would be so generous to bear the costs of another student.He himself cannot afford his tuition fees which means he comes from a not so wealthy background----so i'm sure he has got more priorities than anybody else who should look after his family who were dreaming about their son making it big and help them sort out their problems once he is done with his studies.
No matter how hard your rules are there would be some flaws and what if someone who have graduated failed to get a good job which is enough to bear the other students expenses.
@vandana7 (98827)
• India
20 Jun 10
Thanks for calling it good. :)
I didnt say someone. :)
I said social organization. :)
Debt would be insured.
Some legislation would have to be in place.
It would be the problem of insurance company.
Please read what I thought roughly under 1st box, and Ms's box!
25 years long enough to repay the loan? :)
@vandana7 (98827)
• India
20 Jun 10
Since it would be social organization, the amount would be from many people! Not a single person. It would be once in lifetime donation to such an organization, not something you do annually! So I could donate in 2010, and for entire lifetime, I would never be approached for more monies. I could, if I wanted, go personally to the social organization, and donate some more. Even 100 INR would be appreciated with thanks. :)
Now - insurance company can monitor debts as well, if not better than the banks. :) So I do think it might just work. But somebody needs to come up with flaws in my idea, instead of outrightly rejecting it without thinking it over.:)
@sunnycool (12714)
• India
12 Sep 10
Thank you for the BR aunty ... not even aware of this one.Got no notifier
... not even aware of this one.Got no notifier 
@saphrina (31552)
• South Africa
20 Jun 10
Not a very bad attack, Vannie.
Next time try to make it a bit shorter, okay. I have only so much time to really concentrate.
Now, if i were to do this i would definately get rid of all the middlemen. No banks for any interest and the legislation can go to hell for all i care.
I know how to work around them.
Anything else i missed??
Oh and um, who is this student or did you just use it as an example?
Next time try to make it a bit shorter, okay. I have only so much time to really concentrate.
Now, if i were to do this i would definately get rid of all the middlemen. No banks for any interest and the legislation can go to hell for all i care.
I know how to work around them.
Anything else i missed??
Oh and um, who is this student or did you just use it as an example?@vandana7 (98827)
• India
20 Jun 10
Saphy - I am not good at expressing myself! I tend to eat away words and people misunderstand! So I make them longgggggggggg.
14 percent per annum, compounded every month is ridiculous! The kid wouldnt know what hit him once he graduated!
Legislations are unavoidable. Some kids can be unscrupulous you know.
I choose not to answer the last one, as invariably things get misunderstood out here. :)
14 percent per annum, compounded every month is ridiculous! The kid wouldnt know what hit him once he graduated!
Legislations are unavoidable. Some kids can be unscrupulous you know.
I choose not to answer the last one, as invariably things get misunderstood out here. :)
@bhanusb (5709)
• India
21 Jun 10
Hi vandana, this is a good idea.The banks should carry out such scheme. If the banks do it it would be great help for the students to carry out their education. In this case the banks will charge low interest rate and be repayable after the students get jobs. For the guarantor the banks can follow liberal policy. If it happens it would be a great social scheme of the banks.
@safirpurim (252)
• United States
20 Jun 10
I hear what say! It seems 2 me dat 2 do righteousness & w love your fellow creature s a crime nowadays! So what 2 owe n imaginary debt 2 money lenders! How I c it s we all receive everything from heavens & earth. Money s made f wood which comes from creation & no 1 person or group can own that! All we owe 1 n other s love! F u must defy synthetic law 2 assist your fellow man that should not & could not b. Crime! Peace & love 2 all who know love s greater!
