December 21, 2024

Middle-Class Afghans Haunted by Fears of Future

After the ouster of the Taliban in 2001, thousands of Afghan families returned from abroad, or came in from the countryside, to construct urban and increasingly Westernized lives. They built homes and careers based on an influx of foreign money, expanded bureaucracies and new educational opportunities.

And they are the ones most haunted by the fear that it could all just be a bubble, doomed to pop once foreign money and Western militaries stop holding it up.

“We are enjoying life,” said Rasool Mohibzada, 31, a former taxi driver who sold chickpeas and balloons in Pakistan during the Taliban years, but after returning to Kabul won a job as an I.T. manager for the British Council, the cultural relations agency of the British government.

Sitting in the large house he built on a $95,000 plot of land in airy western Kabul and playing with his 5-year-old daughter, he is a member of a young Afghan generation whose eyes burn with modest aspiration for what would be by outside standards an ordinary life — access to electricity, schools for his son and daughter, rule of law, security.

“But I am quite afraid about the future at the moment,” he said. “If I got the chance, I would go now.”

Though all of Afghanistan’s major cities have grown and changed, the biggest differences, by far, can be seen in Kabul. Its population has exploded, now more than 5 million compared with 1.2 million in 2001, and its streets, planned for 30,000 cars, are clogged with 650,000, according to the mayor, Mohammad Yunus Nawandish. He is drawing up an expanded city plan that can accommodate up to 8 million residents.

The new urban elite makes up only a tiny slice of Afghan life — most of the newcomers to Kabul are impoverished migrants who now occupy terraces of rough mud houses that have splashed up onto the rocky hillsides surrounding the city.

And the norm is still grinding poverty for about 70 percent of Afghans, who live in the countryside, or about 25 million people by some estimates. Taken as a whole, life expectancy for Afghans is still just 48 years, and the average annual national income per capita is about $410. That makes the contrast with the markers of the middle class all the more striking: in Kabul, there are beauty parlors, a bowling alley, new television stations, access to health care (although Afghans must travel abroad for serious treatment), restaurants like Afghan Fried Chicken and children’s birthday parties hosted at nice hotels.

At the private American University of Afghanistan, privileged young adults — some of them the offspring of top officials and businessmen who have minted fortunes in the war economy — stride the five-acre Kabul campus, paying up to $6,000 a year for degrees in law and other subjects.

Some in the new generation have succeeded in the private sector, like Haji Safiullah, 42, a serious, thin-faced man, who owns three pharmacies and is branching out into construction, building apartment blocks in Kabul, Jalalabad and Mazar-i-Sharif.

“I am one of the people who have invested more than $1 million in different businesses,” Mr. Safiullah said.

Even as the United States is deliberating how large a force, if any, will stay in Afghanistan past the 2014 end of the international combat mission, Mr. Safiullah holds to the belief that the Americans will not leave Afghanistan altogether for many years. All the same, he is clear about the shape that catastrophe will take if the world averts its gaze: a deterioration of security and an economic collapse.

“To tell you the truth, I am not that worried about the future, because the international community has invested a lot in Afghanistan,” he said. “They will not let this investment fail.”

However, he keeps a Kalashnikov rifle beneath his counter just in case.

Article source: http://www.nytimes.com/2013/02/12/world/asia/middle-class-afghans-face-a-murky-future.html?partner=rss&emc=rss

Bucks Blog: Student Loan Hurdles for Members of Military

U.S. soldiers near Kabul, Afghanistan, earlier this year.Associated PressAmerican soldiers near Kabul, Afghanistan, earlier this year.

You would think that military members who are actively serving their country shouldn’t have to spend time arguing with their student loan servicing company, right?

Apparently, that’s not the case.

A recent report from the Consumer Financial Protection Bureau finds that service members often have a tough time getting access to loan benefits that are supposed to be available to those serving on active duty, like interest-rate reductions and loan forgiveness programs.

The average cumulative amount of student loan debt for active-duty service members graduating from college in 2008 was $25,566, according to the National Center for Education Statistics. There are a number of special benefits and protections available to help service members manage this debt, but the programs were enacted through a patchwork of laws, and the benefits vary depending on the type of loan in question. Sometimes, details of how the programs work can be confusing — and loan servicing companies don’t always help clarify things.

“Unfortunately, the complexities of these provisions, together with problems in loan servicing, have created difficulties for many military families when attempting to manage their debt,” the agency reports.

Many service members, for instance, simply defer their loans or obtain a forbearance, which lets them skip monthly payments while on active duty. But they may not always understand that on some types of loans, interest may still accrue, often resulting in ballooning loan balances. And they may not be told about possible alternatives that can lower their monthly payments to more affordable levels.

One parent of a service member told the bureau that his son’s three loans totaled just over $61,000 when his son graduated. But the servicer now says the total is almost $85,000, because of a five-month deferral of payments during military service.

One borrower told the bureau that his loan servicer automatically put his loans into forbearance without his permission. “I did not ask for my account to be placed in forbearance and as a result of this action, it is currently accumulating interest,” he wrote.

Programs like “income-based repayment” may allow service members with federal loans to reduce their monthly payments while on active duty. Then, if they remain in the service for 10 years and make 120 on-time payments, they can take advantage of the “public service loan forgiveness” program, which forgives the remaining balance.

Borrowers with both private and federal loans may be eligible for the Servicemembers Civil Relief Act, which reduces the interest rate on loans to 6 percent.

The potential cumulative benefits of these programs are shown in this example in the report: “A service member who takes out $81,000 in loans for school will ultimately owe up to $101,000 after his in-school deferment. If he elects to continue to defer his payments while serving on active duty, he will owe more than $165,000 over the life of the loan.”

But if he enrolls in income-based repayment, qualifies for public service loan forgiveness and receives the benefit of the interest-rate cap under the civil relief act while on active duty, he’ll instead pay about $110,000, saving almost $55,000 over the life of the loan.

The agency has received complaints, however, that service members are made to jump unnecessary hurdles to qualify for the programs, like the interest-rate cap. Some borrowers have said they were told by their loan servicers that the interest-rate cap would expire annually, and that they would have to resubmit additional orders to retain the benefit. It seems unfair and unrealistic, at a minimum, to expect someone who is perhaps dodging bullets to take time out to refile paperwork with a loan servicer.

That’s not how the program is supposed to work, according to the agency. Once a service member requests the interest-rate cap, “the servicer should apply the benefit for the duration of active-duty status.” No repeat filing is necessary.

Have you had trouble getting information about loan benefits for military members?

Article source: http://bucks.blogs.nytimes.com/2012/11/13/student-loan-hurdles-for-members-of-military/?partner=rss&emc=rss