Thoughts on the Latino vote and President Obama’s speech to NALEO…

Lake Buena Vista, Florida - Following sharp criticism of his commitment to the Latino community suggested during speeches by presumptive GOP nominee Mitt Romney and Senator Marco Rubio, President Barack Obama responded in kind by offering a clear contrast to his Republican adversaries during a key election year address to the National Association of Latino Elected and Appointed Officials (“NALEO”). Speaking only a few hours after Rubio, who had told the conference that the President “has not made Latino issues a priority” and offered as proof the fact that the President “hasn’t been to the NALEO conference in the three years since he took office”, Obama seemed unfazed by Rubio’s criticism and instead focused his energy on connecting with the audience and contrasting himself with Romney early and often.

The President began his speech by discussing the vital role of “Dreamers” in helping to fuel the economic engine of America and discussed how immigrants have always been “risk takers, not looking for handouts and some of the hardest working people around.” He then asked the crowd about the kind of vision the Latino community was looking for in their President, specifically asking “what vision do we stand for, who do we fight for?” in reference to Romney’s policies which the President claims would favor the rich and result in a return to “trickle down” economics. He further contrasted his vision from Romney’s by discussing his focus on expanding education opportunities through expanded Pell grants, encouraging community colleges as a bridge to a higher education, and not teaching to a test and instead focusing on expanding curriculums instead of slashing funding like the GOP in Congress and Romney have favored doing by gutting the Department of Education.

The crowd of officials seemed receptive to the President’s message on education, and that didn’t change when the President shifted to discussing his record in what appeared to be a direct response to Romney’s claim the day before that “President Obama doesn’t respect the Latino vote.” He began by mentioning that his administration has already cut taxes 18 times for Latino small business owners and for Latino middle class taxpayers, he discussed the impact of health care reform on the Latino community, the fact that under the Affordable Care , Act Americans will no longer go broke because they are sick. He highlighted the fact that Latino’s have the highest uninsured rate and that it was the “right thing to do passing health care reform.” Finally, he qualified the progress made thus far with the fact that there is more to do, that we need to put more good teachers in our class rooms, need to put people back to work restoring our infrastructure.

Next, the President addressed the need for Congress to take on comprehensive Immigration “in order to continue attracting talented hard working people who believe in this country.” He mentioned that the delay in action on immigration has not been a lack of technical knowhow on how to fix the system, and he used the work put in to the issue by McCain, Bush, and Ted Kennedy, showing there was bi-partisan support at a point in time not long ago. He then blamed the stale mate on obstruction caused by Tea Party faction of the Republican Party in Congress. In stark contrast to Romney who said he would veto the DREAM Act, The President also argued that Congress should have passed the Dream ACT because it was a bill written by both parties. He drove home the point by pointing out that the Republicans who helped write the bill blocked it in the end, and that “the need didn’t change, the bill didn’t change, the only thing that had changed was politics.” He then went on to justify his administrations action stating that “lifting the shadow of deportation and giving these children an opportunity” was the right thing to do. He called it a temporary measure, and reiterated that Congress needs to act and send a bill to his desk ASAP.

Finally, the President closed his speech to NALEO by discussing larger election year themes with a 2008 feel, discussing with passion the need for unity as a country to fully recover from the financial collapse, and mentioning that “an enduring promise of America” is what drives immigrants to America. He mentioned how his story would not have been possible in any other country, and he drew an us versus them type distinction between his vision and the Romney vision when he wrapped up stating that the march toward freedom and equality has always been tough, and that people have tried to stop the progress of minorities over time, but that in the end persevered with the familiar theme from Obama’s historic run to the White House, ending with a resounding “yes we can, si se puede” and a huge applause from the conference crowd that was nearly twice as loud as that of Mitt Romney the day before.

Thoughts on Adverse Credit Delaying the Disbursement of Direct Plus Student Loans and a Possible Fix to an Ambiguous Appeals Process…

Let me preface this article by acknowledging that the student loan debt bubble looms large if tuition costs for American higher education continue to inflate, interest rates continue to rise, and nationwide unemployment remains high. However, in the here and now, there are many unacceptable cases where professional and graduate students are being stifled financially by a lack of necessary exemptions and a time consuming credit verification and appeals process. Specifically, due to limits on the maximum amount that can be borrowed per student per semester, and because of the required credit check approval process, many students now find themselves flipping over their couch cushions looking for spare change and begging their parents, friends, and relatives for money in order to survive during the gap periods and keep their credit scores from flat lining between the Spring & Summer and Fall & Spring semesters.

To illustrate, picture yourself in the following scenario faced by thousands of students for the past month and a half: You’re entering the summer before your third year of law school; you’re already $100,000 in debt (yes, that is around the typical cost of law school tuition and fees in 2012!) and you just accepted an unpaid internship with a government agency in order to gain practical experience and make connections. You’re taking classes at night to try and graduate on or ahead of time, and you depend on student loans to survive the day to day grind associated with gaining access to the legal profession. In early May you double checked your personal financial information and turned in your FAFSA application for your Direct Plus loan before the deadline (and had no issues arise during the previous aid periods).

As the end of May approaches, things have become increasingly tight financially. You receive word from school that your disbursement for the summer semester will not arrive until after the first of June, meaning that your rent and bills are going to be due despite not having enough money available from your previous loan to pay them (last year summer loans were disbursed just before the end of May). As the month draws to a close, you’re notified by e-mail that your application for a summer loan has been denied to due to a newly detected adverse credit issue. You immediately contact Equifax and discover that a billing company reported you to a collection agency because they failed to record a final payment for a phone bill you paid in 2010 (for which you have electronic record of), and in addition, Equifax discovers a bill for $65 that was never forwarded to your new address when you moved apartments last year (and that bill is now more than 90 days overdue and reported to a collection agency!).

You have Equifax run your credit again to verify the total amount you owe and are notified, after that you can cure the adverse credit issue through an appeals process if you can provide your school and Federal Student Aid (“FSA”) with written proof of your satisfaction of the debt owed. Unfortunately, not only are you already broke and not able to afford to cure your debt without your disbursement, but the credit appeals process takes another ten days due to unexplained delays on the part of the collection agency (a whole other important issue), meaning bigger late fees for rent and bills long with exponentially more borrowing needed for basic survival. There is just bad news all around (on top of interest rates rising to 7.9%), and it seems absurd that all this trouble is over a $65 dollar overdue bill that amounts to only 0.6% of the $10,000 that you’re scheduled to receive for the summer!

Under the current rules, an adverse credit report, no matter how insignificant the adverse debt when compared to the amount being borrowed, can prove disastrous to the life of an already broke and overworked graduate or professional student. This rough financial patch experienced by those without wealthy parents or relatives to bail them out as an endorser or “bank” is caused primarily by what I’m calling the “Limbo Period” for financial aid dependent students.

The Limbo Period begins just before final exams, in mid/late April to early May, and runs until loans for summer semester and/or loan qualified externships are disbursed. Because Spring loans are disbursed in mid to late January, and because the max amount has a limit that is designed to last into mid-May at the latest, it’s becoming extremely difficult to live a healthy life and have any money left over by the time final exams come around under the current system. There is no margin for error or accident, if you get sick or injured, then you are going into big time debt, and there is no chance of having money for rent if summer disbursements arrive after the first of June as they did this year.

What can be done to fix the current system? Consider the current language found on the FSA website, and then take a look at my proposed 10% exemption for students with adverse credit…

Current Language from the FSA website: “Credit check & endorser alternative… In some cases, you may also be able to obtain a Direct PLUS Loan if you document to our satisfaction that there are extenuating circumstances related to your adverse credit history.” (This is ambiguous language… what are extenuating circumstances and what does it mean to document something to the satisfaction of FSA?).

See full text: http://www2.ed.gov/offices/OSFAP/DirectLoan/applying.html

My Proposed Additions to the Current Language: For students who are notified by FSA that they have adverse credit but cannot attain an endorser, and do not have a written or electronically documented extenuating circumstance, funds shall still be disbursed as scheduled to each otherwise qualified student by their current institution subject to the “10% Rule Exemption for Students with Adverse Credit” as long as:

1) The total owed to the creditor or other agency by the student required to remedy the adverse credit is less than 10% of the amount sought from FSA for that student’s loan for the upcoming aid period;

Example: If a student is seeking to borrow $10,000 for the summer semester, then they will receive their disbursement on schedule if they owe less than $1,000 to the creditors whose reports triggered the adverse credit report.

2) The student provides evidence, in the form of a written or electronic document, of the amount owed to a creditor, and the evidence provided must demonstrate satisfaction of the 10% Rule; and

Example: Written or electronic proof of the amount owed being less than 10% of the amount to be borrowed by the student through FSA.

3) The student cures their adverse credit by the application deadline set by their institution for the subsequent financial aid period. Example: If the student in the earlier example is receiving summer Direct Loan money, and needs to pay off $850 in debt to a creditor in order to have their adverse credit status removed, then they have until the FAFSA deadline for the upcoming Fall Semester to cure their debt.

The purpose of this proposed change is to spark change so we can keep hard working graduate and professional students, who are most likely in unpaid intern or externships, from being evicted from their homes, swamped with giant late fees, and unable to afford groceries. These students should be focused on learning from their professors and serving their communities. The current adverse credit appeals process lacks any express language that addresses the month long Limbo Period. Therefore, it’s now up to FSA, with the assistance and persistence of the President and members of Congress, to act to implement a fix to this issue before it becomes a catalyst for a larger student loan crisis.

Thoughts on Arizona banning ethnic studies in public schools…

Following the signing of yet another controversial law in the state of Arizona, this time banning the teaching of courses in public schools that advocate ethnic solidarity, are designed primarily for students of a particular race, or that promote resentment toward a certain ethnic group, there are some concerns about the greater message that such a law sends to both the students of Arizona and minorities who take pride in their unique heritages. Though the laws proponents point to these kinds of classes as divisive in consequence, students are given the option, not a mandate, and can choose to learn about other cultures if they so choose. It could be argued that a better understanding of each other is what is needed for all races to ultimately cooperate and get along with one another. The fact that the class demographics may skew in favor of the race that is being studied is no reason to ban the inclusion of such elective classes from the elective palette of inquiring young minds. Proponents of this law come off as fearful of the inevitable mix of cultures that comes with immigration from Mexico and elsewhere. This law sends that exact message, and has already had a significant economic and societal impact in the lives of minorities and businesses in Arizona.

In a melting pot society like ours, where we deem each other equals no matter what race, sex or religion we are born into or choose to follow or not follow. These kinds of laws send a message to our next generation that it is ok to pick and choose what races and religions are acceptable to Americans. This thought process goes against our constitutional ideals, and goes against the realities of the nation we live in and strive to become. We should be encouraging students of all backgrounds to learn as much about each other as they possibly can, in order to make our society a more inclusive and cooperative one. Some Arizona lawmakers have scared themselves and their constituents into thinking that they are being taken over by illegal immigrants and that they are the source of the tensions and discontent of the non-minority population in the state. This is simply not the case. Crime was higher when the illegal immigration population was far less of a factor in the state, and much of the discontent has been fueled by outside groups and Tea Party advocates, who see Arizona as a prime target to launch fear campaigns against minorities and immigrants.

Nonetheless, Arizona is once again under the microscope, and the constitutionality of yet another questionable law is sure to come into question. Going forward, it will be of great interest to see if these recently passed laws will hold up over time. The debates are already heated, and the tensions that have been heightened because of these measures are partly to blame for the increased violence seen towards law enforcement and border officials. The perception from the outside is one of disbelief that in 2010 there is so much resentment towards immigrants, legal and illegal, when there is no proof that they are the root of the fiscal or social problems facing Arizona. This law is also further proof that the conservative legislators who drafted these laws in have lost touch with mainstream American thought as it relates to race relations. Bottom line, the removal of ethnic studies from public schools is a preventable step back in time, not a way to move Arizona into the 21st century.

Thoughts on American ingenuity, the current economic environment, and leading by example…

Today’s brief statement revolves around the thought that we are at an important crossroads when it comes to returning to our prior role as the world’s leader in both innovation and inspiration. Many Americans seem poised to join the ranks of their progressive European peers, creating 21st Century models in areas such as transportation, energy, and the environment. Our decade long focus on fighting terrorism at home and abroad, while necessary, has drained both our coffers and our economic leverage. The economic leverage we had coming out of the Clinton Administration, with a balanced budget aimed at paying down the national debt, was intended for use in areas such as science and math, college grants for research, and improved everyday services. However, as a result of 9/11, the Iraq War, and our continued response to terror in Afghanistan, Pakistan, and elsewhere, the majority of our national energy has been spent on fending off threats at the expense of the well-being of the homeland.

As we near the official trillion dollar point with regards to our 21st Century war spending, the impending transition to a more focused counter terrorism effort will open previously tied off money lines for national priorities which can positively empower all Americans going forward. We need to begin catching up with nations like China when it comes to developing and implementing green technology, and we need to invest in high speed transit systems to assist in our transition from oil to other legitimate sources of energy. In addition, increased investment in our colleges and universities to promote research and development, and a commitment to making higher education the norm in America, will be of the utmost importance if we are to emerge as the leader in future technologies going forward. Our private sector requires increasingly skilled workers, which with the proper levels of funding and motivation can become once again populated with American graduates of institutions of higher learning.

Our next generation will be in a better place if we are mindful of our priorities upon the conclusion of the large scale wars we are waging. We must pay down our debts while ensuring that our economic system is playing by rules which are set up to help all American’s succeed, not just those with enough money to gamble on the livelihoods of their fellow citizens. Wall Street must make the best of the flood of money which will head its way during the next American economic boom. Our willpower has been tested over the past decade, and the overwhelming sense is that America is due for a great comeback. With an emerging collection of new deal style policies in place that are aimed at making the rules of the game fair for American citizens of all economic backgrounds, it is my hope that we will take the initiative and reinvest in our intelligence and harness our traditional ability to bounce back from the most difficult of times. In doing so, I believe that we can become an extraordinary example of perseverance, functionality, and ingenuity for all emerging and existing democracies, in the 21st Century and beyond.

Thoughts on education and our future progress...

There is an educational paradigm facing the United States of America. Every time a student drops out of high school or college, the collective intelligence and prosperity of the entire nation suffers, and the future of that individual becomes statistically bleak. According to the UN Education Index, the United States ranks at a dismal 19th in educational attainment. This is unacceptable by our lofty standards, and hints at a cynical standpoint by some who claim that we have the best educational system in the world. The bottom line is that unless we address the standards by which we judge a good education, from teachers and parents, to the student loan system, we will continue to see rising underemployment and unemployment in this country. Given this fact, it is useful for us to address the learning deficit problem head on.

This criticism of our educational system acknowledges that there are also exceptions to the status quo. There are many great schools in America, primarily in well off districts, which have high graduation rates and send a majority of their students to college. But, this is not the case in many less fortunate school districts across America. The truth is that many middle and lower income communities have an educational crisis on their hands. Minority populations, in particular African Americans and Hispanics, are falling too far behind, collectively graduating approximately 53% (according to the Alliance for Excellent Education) of high school students in 2009; A rate that is 19% lower than that of their White and Asian counterparts. Not only are thousands of public school budgets in the red, Federal programs, such as No Child Left Behind, are in need of increased funding and improved direction.

As America slowly climbs out of this recession, the heart of the recovery lies in our unified ingenuity and ambitions. We have a collective responsibility and a vested interest in creating an environment where learning and continuing education are the norm. In order to compete globally today and in the future, our educational standards must rise, and our tolerance for ignorance must shrink. The facts of the matter are staggering. As states make tough financial decisions regarding education budgets, the numbers tell us that the future success of a majority of Americans lies greatly on the education level attained by that individual.

According to recent polling data, there is a direct link between underemployment, unemployment and a citizen’s education level. Though there are always exceptions to the norm, the collected data tells this highly predictable story. A recent article by Gallup states that amongst the underemployed, “the underemployment picture for those without a high school diploma is even bleaker. They currently face a 36.2% underemployment rate, and are 50% more likely than high school graduates to be underemployed, three times more likely than those having a college degree, and four times more likely than those who have done postgraduate work. High school graduates are twice as likely as college graduates to be underemployed.” These numbers are identical in proportion to overall unemployment. These staggering figures also show why it is imperative that we tackle the problem of preparing our citizenry for global competition. If graduation levels do not improve, with an emphasis on all subjects, we will continue to see falling tax revenues and an increased need for hiring foreign talent to work in jobs that will not go to an unprepared American job force. Our interests in all sectors of the economy are at risk if the government does not act. Take healthcare, the majority of the increasing number of the uninsured are those who are unemployed or working part time shifts. To buck the costly trend towards increased underemployment, we need our schools to produce a better educated workforce capable of creating opportunities for the next generation who should aspire to do great things in America.

Going forward, it will be important for our schools to put students in a better position to succeed. Along with encouraging responsible parenting, we need to examine nationwide curriculum standards with an emphasis on building up the weakest links on the educational chain. As mentioned in my previous article, the return of nearly 8 to 10 Billion dollars per month of taxpayer money to the treasury, following the end of the Iraq War, will provide much needed funds for an educational system in dire economic straits. Along with updating the standards set in No Child Left Behind, actions taken to address state budgetary issues will provide a much needed boost to schools underperforming and/or on the brink of closure.

Today, President Obama signed legislation which will take big steps to remove bank greed from the student loan process. This law, coupled with changes to the health care reform bill, sets limits on the interest rates and minimum payments for those who are taking part in this expanded federal student loan program. In addition, the fact that many middle and lower income families will now have an added incentive to push their children to the college level, because of an even financial playing field for all Americans seeking student loans for continued education ,will encourage a culture of learning and innovation in minority communities nationwide.

America’s ambitious students deserve an honest bi-partisan effort to reform the educational system. As the Iraq War winds down, and resources become available to solve the problems facing our schools, let’s hope that our leaders will realize the urgency of renewing America’s intellectual status worldwide. We must use these incoming funds wisely. The education of our citizenry is a matter of national interest that must be addressed both immediately and responsibly. In the upcoming months, we should keep a close eye on the education debate. The time has come to bring the American educational system into the 21st century for all citizens, not just the elite and/or fortunate few. The future viability of American progress is at stake, and our ability to lead globally lies in addressing the paradigm facing our educational system.

Thoughts on war and the domestic agenda of the United States…

Upon analysis of the proposed budget for fiscal year 2011, it has become obvious that the priorities of the United States are in great jeopardy due to massive debt incurred from the wars in Iraq and Afghanistan. Not only have over 4,000 servicemen (including my first cousin) and women died in the war on terror, but over 30,000 will return home with life altering battle wounds. In addition, billions in taxpayer dollars have disappeared due to mismanagement by hired contractors, overpayment to companies like Halliburton, and corruption by those who are responsible with using these funds appropriately as directed.

Unfortunately for taxpayers, the war debt created by the Bush Administration has now come due, and with heavy interest. This year alone, it is estimated that US taxpayers will foot a bill of nearly 200 billion dollars for debt incurred over the past decade. Our military budget is 1.2 Trillion dollars this year, and the fact that war spending was billed as a separate budget entity under President Bush, only recently to be included in the full budget, demonstrates the degree to which fiscal irresponsibility was ignored in the name of fighting the “axis of evil” abroad.

The Obama Administration, despite escalating troop levels to finish the fight in Afghanistan, has already begun to reign in wasteful defense spending. Not because they intend to back down to outside threats, but because the cost of waging war for nine years has taken a critical toll on the domestic agenda here at home. Programs such as Social Security and Medicare are at risk because we are spending nearly $10 billion a month fighting overseas. To date, the Iraq War has cost over $740 billion. In comparison, Afghanistan, the true stomping grounds of the 9/11 planners, has cost a mere $260 billion or one-third of Iraq. In all, over one trillion dollars have been spent on anti-terror based operations, and only now are we truly focused on finishing the job of dusting off the Taliban and capturing Al Qaeda leadership.

In stark contrast, W. Bush’s father was able to wage the first Gulf War at a total cost of $62 billion, including returning our troops home to safety upon completion of the mission. W, as opposed to his father, declared victory, but then chose to extend the conflict into an ambitious nation building operation. This decision was made with budgeting practices which ignored the long term viability of such an action. As the price of the War in Iraq skyrocketed, it became apparent that defense spending was spiraling out of control. Thus, the Bush Administration told the Pentagon to scrap unnecessary projects, such as a new fleet of Presidential helicopters, in a shallow attempt to appear frugal.

With defense spending dominating budgetary matters, the mainland American public was suffering dire economic consequences. From unregulated banks, Wall Street greed, and an exploding housing bubble, there is no denying that fighting two wars, while largely ignoring the home front, ultimately led us to near chaos in late 2008. While it cost taxpayers over $390,000 to deploy a solider abroad, middle class and lower income families saw their wages remain stagnant amidst inflation in healthcare costs and gas prices that peaked near $6 dollars a gallon at the height of the Iraq War.

In a sense, our country has not only lent its heart, soul, and children to fight these wars, we’ve sacrificed a decade worth of monetary progress to avenge a savage act on our soil. To debate the necessity of the Iraq War is futile; as it is coming to an end as you read this, but there is no doubt that the American people are less well off because of the irresponsible manner in which it was conducted. Our reputation abroad was damaged because of holes in the game plan, and the proximity of the conflict to Iran and Israel has allowed tensions to reach a boil. This brewing conflict took center stage, while our education, healthcare, and immigration systems required attention that was not being given to them.

Now is the time for us to focus on the problems that are right under our noses. President Obama has begun to draw down the troop levels in Iraq, diverting additional resources to the fight in Afghanistan, and setting his sights on 9/11 and Al Qaeda. The eventual return of a majority of our armed forces to the mainland will have a dramatic effect on the morale of the country, and aid in our ability to handle tough domestic issues. Going forward, it will be vital to refocus on building an America that is ready to lead both militarily and intellectually in the 21st century.

We need to become a healthier nation from a mental standpoint, and we need to reevaluate what kind of country we want to be going forward. Are we to be defined by our wars or by our ideas? Are we going to be a nation that fears the future, or relishes it? These questions are important to think about as we witness new foreign and domestic policies begin to take form. It will be in the vested interest of all Americans to take note of the impact of a less confrontational world view on our perception abroad, as well as the effects of having an extra $10 billion per month to use for domestic purposes.

Though in the end these wars we have waged are but a blip in the violent history of the world, we must realize that this is our time to regroup as a nation. The decisions that are made by our leaders going forward will ultimately define all of our futures. For this reason, we must all agree that no matter what our petty differences may be, our common needs do not change because we are at war. It is because of this fact that future wars must be fought within the realm of financial reason. Ultimately, we cannot afford to fight preemptively if it means bankrupting our nation again. The time has come to take note of what has happened to us, and to avoid repeating history in the future.

Addendum I: Effects of ending the War in Iraq: The successful return home of the brave soldiers stationed in Iraq should have short term positive boost on the morale of the entire nation. It will be our responsibility to help our biggest patriots mesh into the non-war world. We have to remember that this has been the longest War we have fought in several lifetimes, so it will be difficult even for the strongest minded of our troops to adapt to the calmness of daily life in America. In addition, a decline in tension between the US and Iran may be possible some time down the road given that much of the current day paranoia expressed by the President of Iran is due to our proximity to their border and their fear of American imperialism. Finally, world markets should welcome the renewed flow of billions more in domestic spending to renew the American economy, leaving the potential for a late 90's type boom.