Someone elses money

I read a story this week that highlights a major problem with society.  People seem to think that money comes from thin air.

The article can be found HERE.

Three years after her son’s death, a 61-year-old Michigan woman is still on the hook for his student loans -- and a petition she started now has nearly 200,000 signatures demanding the companies forgive the loans and change their policies.

Jermaine Edwards went to college to study music production, and his mother, Ella Edwards, agreed to cosign his student loans to help him attend school.  However, Jermaine died of natural causes in 2009 at age 24, leaving his mother responsible for the loans.


Jermain had three student loans when he died, two federal and one private.  The two federal government loans were forgiven within a month of his death.  However, the private loan company is refusing to forgive the loan.

“He was paying the loan bills when he died, but the balance is still over $10,000, and if I’m ever a couple days late on a payment, the calls keep coming until I pay,” Ella told ABC News.

It is sad that her son died but let's look at the facts here.

1) He borrowed money from a private business

2) She co-signed agreeing that if he was unwilling or incapable that she would allow herself to be held responsible

One brilliant observation by some of the free stater's over at the NH underground, the article does not make it clear whether or not she cosigned the federal loans.  If she didn't then it is clearly misleading to say that the federal government forgave where the private business did not.

That aside, there are major differences between government and a private business.  If a private business just handed out money and forgave everyone who couldn't pay it back for whatever reason, eventually that private business would go bankrupt.  A private business exists to make money, it needs to in order to pay the people who work there in the first place.

Her petition found HERE received 203,774 signatures.  If each of the signers were to split the remaining $10,800 between them it would come out to be just about five cents each.

But people don't think this way any more.  Now corporations are the bad guys.  They could care less if these institutions go out of business laying off thousands.

In reading about this petition I had nearly lost fair in our country that we had any sense of free market left but then I read the story HERE.  A radio host, Tom Joyner, has stepped up and said he will pay the remaining $10,800 off on her loan.

Happy ending for all proving that the free market works.  The poor woman found a solution to her problem, the business wasn't forced into losing money and Tom Joyner has gotten plenty of publicity for his act of kindness which will help draw new listeners to his show.