Mark Kantrowitz claims that six-figure debt is a rarity, and says that journalists are sensationalizing the problem. While it might be true, based upon his findings, that there is not a huge percentage of people with that sort of student loan debt, the fact remains that we are in a full-blown crisis. Journalists and activists are not the only ones who acknowledge the crisis. Higher education policy analysts, politicians, and other experts recognize the problem. More importantly, those who are being crushed by their debt, and also realizing that their window of opportunity for financial security in the future is narrowing, know all too well that the crisis is worsening. Those stories matter.
Furthermore, there is no debate that the dramatic increase in default rates on student loans is worrisome. This is an obvious sign that people are failing to pay back their loans, and that more Americans are falling off the grid. For what reason? Pursuing higher education.
So, while Kantrowitz's findings might be accurate, it does not change that fact that we are still in a deep, long student lending crisis. It also doesn't change that fact that our leaders aren't doing anything substantial to change that fact. When it comes to leaders, we could use some more Browns and Harkins on the Hill.
I also take issue with Kantrowitz's claim that the stories are all sensationalized. Interestingly, a few months ago, he was quoted in a NYT article, and his tone was quite different. I was glad to read his comments in that piece, because it was the first time I heard him express public sympathy for borrowers. Now, I could be mistaken, perhaps he's done it in the past, but his remarks were notable.
What do you think about his findings?
Friday, August 3, 2012
Tuesday, July 31, 2012
Higher Ed Watch: Steve Burd - "Why the Harkin Report on For-Profit Colleges Really Matters"
Higher Education Policy Analyst Steve Burd, at the New America Foundation, published a piece on July 31st about Senator Harkin's report on for-profit colleges. The findings offer damning evidence of how these schools mislead students and defraud them. It is clear, based upon Burd's analysis, why Harkin's findings matter. The report, as Burd notes, is "voluminous" and accurately documents systemic abuse among for-profit schools. This abuse turns students into indebted, and oftentimes unemployable citizens. AEM has also documented these sorts of abuses in the past (here's a sampling - here, here, and here, and it doesn't stop there).
Sentoar Harkin is a rarity on the Hill, especially when it comes to critiquing the predatory nature of higher education, and the way in which these higher education institutions - for-profits in particular - make money by turning students into permanent debtors. He is one of the few who truly cares about prospective students, their families, and those who have graduated and struggling with large amounts of student loan debt. Harkin has received a lot of heat for these investigations. That's unfortunate, because he should be praised by groups who supposedly advocate for students. Sadly, so many of these "pro-student" groups have been co-opted by the lenders and the higher education industry that they fail to properly offer support to leaders like Harkin.
The report has come after a 2-year investigation, and Burd calls it a "major development," because "[the report] will make it extremely difficult for the industry and its Congressional champions to continue to deny that abuses have occurred at their schools that have caused – as Senator Harkin said at a press conference yesterday -- 'lasting harm to the students they enroll.'"
Burd admits that lawmakers can ignore the report and its pages and pages of documentation that prove the truly deceptive and fraudulent practices of these institutions. However, they can no longer assert, as Burd notes, "with a straight face," that these operations are run in a transparent, ethical, and fair manner.
As so many of us have known all along, and I would include Burd in this camp, these schools do not have the interests of the students at heart. On the contrary, they are driven by maximizing profits. In so doing, students pay a terrible price and are turned into permanent indentured educated citizens. The borrowers aren't the only ones paying the price: taxpayers who fund these schools are also being hurt. Unfortunately, the lending system is so complex and bureaucratically layered to confuse the public - especially when it comes to the way these schools allocate funds - that few taxpayers truly understand how they are also being defrauded.
As for the findings in the report, it of course remains to be seen if it will lead to any actual change, such as enforcing strict regulations and penalties for their predatory nature.
Sentoar Harkin is a rarity on the Hill, especially when it comes to critiquing the predatory nature of higher education, and the way in which these higher education institutions - for-profits in particular - make money by turning students into permanent debtors. He is one of the few who truly cares about prospective students, their families, and those who have graduated and struggling with large amounts of student loan debt. Harkin has received a lot of heat for these investigations. That's unfortunate, because he should be praised by groups who supposedly advocate for students. Sadly, so many of these "pro-student" groups have been co-opted by the lenders and the higher education industry that they fail to properly offer support to leaders like Harkin.
The report has come after a 2-year investigation, and Burd calls it a "major development," because "[the report] will make it extremely difficult for the industry and its Congressional champions to continue to deny that abuses have occurred at their schools that have caused – as Senator Harkin said at a press conference yesterday -- 'lasting harm to the students they enroll.'"
Burd admits that lawmakers can ignore the report and its pages and pages of documentation that prove the truly deceptive and fraudulent practices of these institutions. However, they can no longer assert, as Burd notes, "with a straight face," that these operations are run in a transparent, ethical, and fair manner.
As so many of us have known all along, and I would include Burd in this camp, these schools do not have the interests of the students at heart. On the contrary, they are driven by maximizing profits. In so doing, students pay a terrible price and are turned into permanent indentured educated citizens. The borrowers aren't the only ones paying the price: taxpayers who fund these schools are also being hurt. Unfortunately, the lending system is so complex and bureaucratically layered to confuse the public - especially when it comes to the way these schools allocate funds - that few taxpayers truly understand how they are also being defrauded.
As for the findings in the report, it of course remains to be seen if it will lead to any actual change, such as enforcing strict regulations and penalties for their predatory nature.
 |
| Photo Credit: Johnathan Ernst/Reuters |
Monday, July 30, 2012
Did you graduate from a prestigious law school, unemployed, and deeply in debt?
Help A Reporter: Are you a law grad from an Ivy League or prestigious school (Georgetown, Stanford, U. of Chicago, etc), can't find a job, and have a lot of student loan debt? A major broadcasting company is doing a show and asked for assistance on finding people who are willing to be interviewed.
Email me - info@alleducationmatters.org
Email me - info@alleducationmatters.org
"Woman's on the Hook for a $25,000 Student Loan She Never Knew Existed"
Mandi Woodruff put out a recent article about a woman, Alice Cortes, who somehow owes $25,000 to Sallie Mae. What's the main problem? She co-signed for a person who seems to not exist.
I have heard from a number of people who paid off their loans, only to later learn that the loan was somehow turned over to collections and still existed. Several of them learned about these loans after they tried to buy homes, and they discovered that their credit was ruined.
In this case, Cortes never took out the loan for this individual, so she is at a loss to determine how to solve the problem.
Have you ever discovered a loan in default when you pulled your credit score, even though you paid it off years earlier? Has a lender ever pursued you for a loan that you never co-signed on?
In my view, this is another example of how out of control the lending industry is - there is essentially no oversight, so lenders have full power over people. In this case, they are apparently tracking down a woman who never even signed for a loan.
I have heard from a number of people who paid off their loans, only to later learn that the loan was somehow turned over to collections and still existed. Several of them learned about these loans after they tried to buy homes, and they discovered that their credit was ruined.
In this case, Cortes never took out the loan for this individual, so she is at a loss to determine how to solve the problem.
Have you ever discovered a loan in default when you pulled your credit score, even though you paid it off years earlier? Has a lender ever pursued you for a loan that you never co-signed on?
In my view, this is another example of how out of control the lending industry is - there is essentially no oversight, so lenders have full power over people. In this case, they are apparently tracking down a woman who never even signed for a loan.
Saturday, July 28, 2012
Higher Ed Watch: "New Financial Aid Shopping Sheet Standardizes Award Letters—But Will Anyone Use It?"
Rachel Fishman recently wrote an article at Higher Ed Watch about the new financial aid shopping sheet that the Department of Education and the Consumer Financial Protection Bureau (CFPB) are now offering to prospective students. The resource will enable students to decipher financial aid letters sent to them once they have been admitted into college(s). The CFPB provided a prototype - or "draft" - of this tool last October. But there's a catch to this new sheet: institutions don't have to offer it to incoming students. Since schools are not required to adopt the tool, Fishman raises valid concerns about its potential efficacy.
Indeed, it is not only unfortunate but somewhat troubling that schools are not required to offer the sheet. Instead, as already mentioned, it's voluntary. In addition, a recent piece published by The Huffington Post - and referenced by Fishman - includes an interview with U.S. Secretary of Education Arne Duncan. He made it clear that if schools do not opt to use the sheet, there will not be any "sanctions" against them. Duncan is, however, confident that most schools will "do the right thing," and provide it to students. But on what grounds does Duncan believe schools will actually use the sheet? Is that some gut feeling he has? In a word, what evidence does he offer to make that assertion?
Fishman is also right in saying that the voluntary option to use or not use the sheet is "one glaring, fatal problem." Even if the sheet will provide more transparency to borrowers, what will actually motivate schools to implement the measure? Again, there is no a shred of evidence that suggests schools across the U.S. will use this new resource to help incoming students understand their financial aid packages. Furthermore, schools control all funds disbursed to borrowers, and this is precisely why transparency is, overall, sorely lacking. The lack of full disclosure should disturb the public. When pundits and politicians, lenders and school authorities continually rant against the millions of borrowers who have defaulted on their loans or fallen behind on their payments, and pull the "personal responsibility" argument, it is important to remember that these institutions of higher learning are not regulated in any way when it comes to the way in which they allocate funds.
As for the interest in and commitment to using the financial aid sheet, a few institutions have already pledged to offer it. But with over 6,600 institutions in the U.S., the likelihood is that the tool will not be offered to the millions and millions of incoming college students. If that is the case, then why was it designed in the first place? Obviously, money and labor were put into its design and creation. So, does this mean that it will be another case in which invested time and labor will be wasted?
In some ways, it is reminiscent of IBR (Income Based Repayment program). While I do not have numbers on how many borrowers are now enrolled in IBR, last Fall - when I was on a press call with the White House - Melody Barnes, Director of Domestic Policy, admitted that only 450,000 people were part of the program. There are over 36 million Americans who have federal student loans and are no longer in school, which suggests IBR has not been properly implemented and promoted. That is one of the reasons the President spent time promoting the program when he visited college campuses at that time. The Department of Education did a poor job of advertising IBR. Even worse, lenders are not required to even disclose the program to struggling borrowers.
Will this also be the case for the financial aid shopping sheet? Will only a few borrowers have access to it, because schools will not offer it?
The optional factor has gotten the attention of some politicians who are concerned about students and the skyrocketing cost of college. Senator Al Franken (D-MI), for instance, has realized the inadequacy of the sheet being optional. Fishman notes, "Franken understands the importance of a model financial aid letter for students, which is why he has introduced bipartisan legislation that would mandate its use. He wants to ensure that all students, not just those lucky enough to apply to schools that voluntarily adopt this letter or those using military benefits, understand the true cost of college. A scattershot approach will not help a student and her family line up and compare four different award letters on the dining room table."
The big picture, that is, the depth of the crisis, cannot be overlooked when discussing these sorts of plans and programs. Indeed, we need to be remember that outstanding student loan debt has now surpassed $1 trillion. Despite this troubling figure, the dramatic increase in default rates, and the lack of jobs for graduates (especially recent grads), there are currently no short-term or long-term solutions to solve the crisis. The severe hemorrhaging continues, and more borrowers are slipping off the grid and being sucked down a financial tube towards total and permanent ruin. The emotional cost is tremendous and is mercilessly hitting countless grads with debt - these painful truths should not be forgotten. Some, as I noted in a recent article and in an interview on NPR, are suicidal. When will there be viable solutions implemented? That remains to be answered.
Indeed, it is not only unfortunate but somewhat troubling that schools are not required to offer the sheet. Instead, as already mentioned, it's voluntary. In addition, a recent piece published by The Huffington Post - and referenced by Fishman - includes an interview with U.S. Secretary of Education Arne Duncan. He made it clear that if schools do not opt to use the sheet, there will not be any "sanctions" against them. Duncan is, however, confident that most schools will "do the right thing," and provide it to students. But on what grounds does Duncan believe schools will actually use the sheet? Is that some gut feeling he has? In a word, what evidence does he offer to make that assertion?
Fishman is also right in saying that the voluntary option to use or not use the sheet is "one glaring, fatal problem." Even if the sheet will provide more transparency to borrowers, what will actually motivate schools to implement the measure? Again, there is no a shred of evidence that suggests schools across the U.S. will use this new resource to help incoming students understand their financial aid packages. Furthermore, schools control all funds disbursed to borrowers, and this is precisely why transparency is, overall, sorely lacking. The lack of full disclosure should disturb the public. When pundits and politicians, lenders and school authorities continually rant against the millions of borrowers who have defaulted on their loans or fallen behind on their payments, and pull the "personal responsibility" argument, it is important to remember that these institutions of higher learning are not regulated in any way when it comes to the way in which they allocate funds.
As for the interest in and commitment to using the financial aid sheet, a few institutions have already pledged to offer it. But with over 6,600 institutions in the U.S., the likelihood is that the tool will not be offered to the millions and millions of incoming college students. If that is the case, then why was it designed in the first place? Obviously, money and labor were put into its design and creation. So, does this mean that it will be another case in which invested time and labor will be wasted?
In some ways, it is reminiscent of IBR (Income Based Repayment program). While I do not have numbers on how many borrowers are now enrolled in IBR, last Fall - when I was on a press call with the White House - Melody Barnes, Director of Domestic Policy, admitted that only 450,000 people were part of the program. There are over 36 million Americans who have federal student loans and are no longer in school, which suggests IBR has not been properly implemented and promoted. That is one of the reasons the President spent time promoting the program when he visited college campuses at that time. The Department of Education did a poor job of advertising IBR. Even worse, lenders are not required to even disclose the program to struggling borrowers.
Will this also be the case for the financial aid shopping sheet? Will only a few borrowers have access to it, because schools will not offer it?
The optional factor has gotten the attention of some politicians who are concerned about students and the skyrocketing cost of college. Senator Al Franken (D-MI), for instance, has realized the inadequacy of the sheet being optional. Fishman notes, "Franken understands the importance of a model financial aid letter for students, which is why he has introduced bipartisan legislation that would mandate its use. He wants to ensure that all students, not just those lucky enough to apply to schools that voluntarily adopt this letter or those using military benefits, understand the true cost of college. A scattershot approach will not help a student and her family line up and compare four different award letters on the dining room table."
The big picture, that is, the depth of the crisis, cannot be overlooked when discussing these sorts of plans and programs. Indeed, we need to be remember that outstanding student loan debt has now surpassed $1 trillion. Despite this troubling figure, the dramatic increase in default rates, and the lack of jobs for graduates (especially recent grads), there are currently no short-term or long-term solutions to solve the crisis. The severe hemorrhaging continues, and more borrowers are slipping off the grid and being sucked down a financial tube towards total and permanent ruin. The emotional cost is tremendous and is mercilessly hitting countless grads with debt - these painful truths should not be forgotten. Some, as I noted in a recent article and in an interview on NPR, are suicidal. When will there be viable solutions implemented? That remains to be answered.
Thursday, July 26, 2012
NPR Interview - The Story: "Suicide and Student Debt"
Guest Host Sean Cole spoke to John Koch and me, as the founder & executive director of All Education Matters, about suicide, student loan debt, and the student lending crisis.
Listen to the podcast here.
| Guest Host Sean Cole |
Saturday, July 7, 2012
Interview with Host Michael Castner, Wall Street Journal's Dail Wrap
The Economic Hardship and Reporting Project provided me with a grant to write an in-depth article about suicide and its relationship to student loan debt. The piece was published by the Huffington Post early last week. Thanks again to authors Barbara Ehrenreich and Gary Rivlin for being editors on this important project.
Also, listen to AEM's interview with Michael Caster, host of the Wall Street Journal's Daily Wrap.
Here's the link to the podcast - http://www.dailywrapwsj.com/Podcasts/11533904 - the interview took place on July 5th (jump to the seventeen minute mark to listen).
Monday, July 2, 2012
Economic Hardship and Reporting Project - The Ones We've Lost: The Student Loan Debt Suicides
The Economic Hardship and Reporting Project provided me with a grant several months ago to write an in-depth article about the student lending crisis. My editors were Barbara Ehrenreich and Gary Rivlin. Here's the piece. I hope you'll share with your networks, because this is the dark side of the student lending crisis and the public needs to be aware of how bad things have gotten for student loan debtors. This is a national emergency and it needs to be solved now.
Here's a snippet:
Here's a snippet:
This story was produced by the independent Economic Hardship Reporting Project, co-edited by Barbara Ehrenreich and Gary Rivlin.Read the rest of the story here.
One evening in 2007, Jan Yoder of Normal, Illinois noticed that her son Jason seemed more despondent than usual. Yoder had been a graduate student in organic chemistry at Illinois State University but after incurring $100,000 in student loan debt, he struggled to find a job in his field. Later that night, Jason, 35, left the family's mobile home. Concerned about her son's mood, Jan Yoder decided in the early morning hours to go look for him on campus, where a professor she ran into joined her in the search. The two of them discovered his body in one of the labs on campus and called campus police at 8:30AM. 32 minutes later, Jason was declared dead due to nitrogen asphyxiation.
Saturday, June 30, 2012
Student Loan Rate Bill Passes In The House: Rates Remain The Same
This is big news - so glad that they passed this bill last week. I want to thank all the activists and politicians who have worked tirelessly on this battle. It is one that we've won TOGETHER. Special thanks to Senators Begich, Reed, Brown, and Harkin - we need more people on the Hill like you. This is only the beginning of more triumphs for students and student loan debtors.
Here's a link to the AP piece about the passage of the bill. Check out the picture of Boehner below. He looks glum, but that's because he doesn't have the interests at students at heart, and he lost this battle. Never has had a concern about students and student loan borrowers, and he never will. That's why he needs to be ousted. And I am all about bipartisan work. I work with Republicans too, but this guy has got to go!
People, let's keep on fighting! We're on a roll. Stay tuned for even bigger news on my end this coming Monday . . .
Here's a link to the AP piece about the passage of the bill. Check out the picture of Boehner below. He looks glum, but that's because he doesn't have the interests at students at heart, and he lost this battle. Never has had a concern about students and student loan borrowers, and he never will. That's why he needs to be ousted. And I am all about bipartisan work. I work with Republicans too, but this guy has got to go!
People, let's keep on fighting! We're on a roll. Stay tuned for even bigger news on my end this coming Monday . . .
Wednesday, June 27, 2012
Partisan Battle Continued: Interest Rates on Student Loan To Increase?
Most of you have probably already heard, but in case you haven't, student loan interest rates on Stafford loans are set to double on Saturday. They are currently a 3.4%. If they double, this change will impact over 7 million students currently in school.
Here's an MSNBC video about the situation.
Given the dire economic situation in this country, and the millions and millions of borrowers who are struggling or unable to pay off their debt, this "battle" is only political posturing. While that is common in D.C., they all look even more tone deaf than ever. It's pitiful.
Here's an MSNBC video about the situation.
Given the dire economic situation in this country, and the millions and millions of borrowers who are struggling or unable to pay off their debt, this "battle" is only political posturing. While that is common in D.C., they all look even more tone deaf than ever. It's pitiful.
Wednesday, June 20, 2012
Cruel and Inhumane Punishment - "Father Struggles To Pay Dead Son's Student Loans"
I have heard so many stories that are similar to this one. It's infuriating, because it is unjust and cruel and unnecessary. The creation of this system of payday scammers of higher education is despicable, and has no place in our society. And yet they are flourishing and cashing in at the expense of borrowers, their families, and US taxpayers. Meanwhile, the best we can get in DC is quibbling over a student loan rate increase. (And I've made my position clear on that issue in interviews on CNN, HLN, as well as several articles that I've written).
In this case, this father had just buried his son and the higher ed payday lenders came after him for money. Here's part of the story:
The story becomes more problematic when it comes to the buying and selling of these loans. Some of the loans may now be owned by the Swiss government. While I haven't written about that situation, I have covered the fact that these loans are deeply embedded in the global financial markets. Deutsche Bank, for instance, bought student loans from Northwestern University in 2009.
It is a huge mess, but certainly one that can be solved. Bu the question remains: who's going to have the guts to step up to the plate?
Read the rest of Reynoso's struggle here.
In this case, this father had just buried his son and the higher ed payday lenders came after him for money. Here's part of the story:
A few months after he buried his son, Francisco Reynoso began getting notices in the mail. Then the debt collectors came calling.
"They would say, 'We don't care what happened with your son, you have to pay us,'" recalled Reynoso, a gardener from Palmdale, Calif.
Reynoso's son, Freddy, had been the pride of his family and the first to go to college. In 2005, after Freddy was accepted to Boston's Berklee College of Music, his father co-signed on his hefty private student loans, making him fully liable should Freddy be unwilling or unable to repay them. It was no small decision for a man who made just over $21,000 in 2011, according to his tax returns.
"As a father, you'll do anything for your child," Reynoso, an American citizen originally from Mexico, said through a translator.
Now, he's suffering a Kafkaesque ordeal in which he's hounded to repay loans that funded an education his son will never get to use — loans that he has little hope of ever paying off. While Reynoso's wife, Sylvia, is studying to be a beautician, his gardening is currently the sole source of income for the family, which includes his 18-year-old daughter Evelyn.
And the loans are maddeningly opaque. Despite the help of a lawyer, Reynoso has not been able to determine exactly how much he owes, or even what company holds his loans. Just as happened with home mortgages in the boom years before the 2008 financial crash, his son's student loans have been sold and resold, and at least one was likely bundled into a complex Wall Street security. But the trail of those transactions ends at a wall of corporate silence from companies that include two household names: banking giant UBS and Xerox, which owns the loan servicer handling the bulk of his loans. Left without answers is a bereaved father.
The story becomes more problematic when it comes to the buying and selling of these loans. Some of the loans may now be owned by the Swiss government. While I haven't written about that situation, I have covered the fact that these loans are deeply embedded in the global financial markets. Deutsche Bank, for instance, bought student loans from Northwestern University in 2009.
It is a huge mess, but certainly one that can be solved. Bu the question remains: who's going to have the guts to step up to the plate?
Read the rest of Reynoso's struggle here.
| When I did a seance to contact Al about the higher ed payday scheme, he said his: "Ah, I tells ya, my twist, if higher ed payday cash advances had been around in my day, I woulda been best! But I am sorry to hear about that kid's death. Shame." |
Fleeing Debt - Will It Become More Difficult Or Even Impossible?
There were many reasons why people in the past fled their homelands. A significant one? Escaping the punishing existence of indebtedness. I know of many who have fled the U.S. because of their student loans. There are good reasons for why people have made that decision, and it is something that is not new. But will it become increasingly difficult for the indentured educated class to start anew? This debt punishment must come to an end.
Sunday, June 17, 2012
Student Loan Debt Refugees - Fleeing The Country Because Of Student Loans?
If you are a recent graduate who is seriously planning to flee the country because of your student loan debt, I would like to interview you for a story. In addition, if you have already fled the country for this reason, I would also like to speak with you.
All interviews will be confidential and you can remain anonymous, unless you say otherwise.
Send me an email - ccrynjohannsen [AT] gmail [DOT] com.
This article will be placed on a high traffic site, because your experiences are critical in shining light on the student lending crisis.
All interviews will be confidential and you can remain anonymous, unless you say otherwise.
Send me an email - ccrynjohannsen [AT] gmail [DOT] com.
This article will be placed on a high traffic site, because your experiences are critical in shining light on the student lending crisis.
National Emergency? Suicidal Student Debtors
The suicidal notes continue to come my way. One man told me that he is planning to kill himself. I have reached out and told him that he can talk to me whenever he likes. I also contacted a fantastic scholar and clinical psychologist, Dr. Peter Kinderman at the University of Liverpool, who has offered to help as well.
If you are suicidal, I urge you to reach out to people you trust (family, friends, a pastor, or a therapist). If you don't wish to do that, seek guidance from organizations like the National Suicide Prevention lifeline (800-273-8255) or visit their website. Avoid the desire to isolate yourself. It is completely understandable to feel this way, especially when you know that you are most likely indebted for life - the feelings of low self-worth are overwhelming, and the desire to leave this life seems rational. However, suicide is not the solution to the crisis. As I've said in past posts, those who love you would be absolutely devastated if you were to take your life. I, as a fellow human being and sympathizer, would be broken up to learn of such deaths.
On a very positive note, last week I was on a teleconference call with Senators Begich (D-AK), Brown (D-OH), and Reed (D-RI). During the call I was able to bring up student loans and suicide. I let them know that the situation is worsening, people are more desperate, and many more are coming to me and admitting that they are suicidal. I told them that this is a "national emergency," and something needs to be done now. That means leaders should not wait until after the elections in November, or, God forbid, 2013.
There were moments in which I felt very hopeful during the call. Senator Begich thanked me twice for my hard work and reminding them of this harsh reality about people who have already graduated. He assured me that they are aware of the problem and just as concerned about those of us who are struggling to pay back our loans and feeling isolation and suicidal thoughts. Reed also expressed his sympathy and deep concern about the overall situation.
I was extremely heartened by the conversation.These are some of the very few within Congress who genuinely care about the student lending crisis and those who are buried in debt. Incidentally, Sen. Harkin of Iowa (D-IA) is another leader who has done an excellent job on shedding light on the problem, and he has not been given enough credit for his hard work, especially on his efforts to curb abuses by the for-profits.
Senator Brown made an excellent point about how out of control the cost of college has gotten. (And we know this quite well. Since 1985, college tuition has risen by 498%). Brown mentioned his wife during the call. Her father had been a union member and she came form a solid working-class family. He added, "when my wife went to school, she graduated owing $2,000 in student loans." That was 30 years ago. You could sense obvious outrage and frustration in his voice when comparing her story to the situation that young graduates face today.
It is comforting to know that some politicians, like Harkin, Begich, Reed, and Brown truly care about our plight and want to come up with viable solutions. They urged everyone to reach out to their leaders. I call upon all of you to do this once again. Just as the Senators on the phone said, reach out to your leaders at the city, state, and national levels, and insist that they come up with short-term and long-term solutions to bring an end to this crisis. Without our hard-work, these senators wouldn't be able to push for change.
If you are suicidal, I urge you to reach out to people you trust (family, friends, a pastor, or a therapist). If you don't wish to do that, seek guidance from organizations like the National Suicide Prevention lifeline (800-273-8255) or visit their website. Avoid the desire to isolate yourself. It is completely understandable to feel this way, especially when you know that you are most likely indebted for life - the feelings of low self-worth are overwhelming, and the desire to leave this life seems rational. However, suicide is not the solution to the crisis. As I've said in past posts, those who love you would be absolutely devastated if you were to take your life. I, as a fellow human being and sympathizer, would be broken up to learn of such deaths.
On a very positive note, last week I was on a teleconference call with Senators Begich (D-AK), Brown (D-OH), and Reed (D-RI). During the call I was able to bring up student loans and suicide. I let them know that the situation is worsening, people are more desperate, and many more are coming to me and admitting that they are suicidal. I told them that this is a "national emergency," and something needs to be done now. That means leaders should not wait until after the elections in November, or, God forbid, 2013.
| Senator Mark Begich (D-AK) |
There were moments in which I felt very hopeful during the call. Senator Begich thanked me twice for my hard work and reminding them of this harsh reality about people who have already graduated. He assured me that they are aware of the problem and just as concerned about those of us who are struggling to pay back our loans and feeling isolation and suicidal thoughts. Reed also expressed his sympathy and deep concern about the overall situation.
| Senator Jack Reed (D-RI) |
I was extremely heartened by the conversation.These are some of the very few within Congress who genuinely care about the student lending crisis and those who are buried in debt. Incidentally, Sen. Harkin of Iowa (D-IA) is another leader who has done an excellent job on shedding light on the problem, and he has not been given enough credit for his hard work, especially on his efforts to curb abuses by the for-profits.
| Senator Tom Harkin (D-IA) |
Senator Brown made an excellent point about how out of control the cost of college has gotten. (And we know this quite well. Since 1985, college tuition has risen by 498%). Brown mentioned his wife during the call. Her father had been a union member and she came form a solid working-class family. He added, "when my wife went to school, she graduated owing $2,000 in student loans." That was 30 years ago. You could sense obvious outrage and frustration in his voice when comparing her story to the situation that young graduates face today.
| Senator Sherrod Brown (D-OH) |
It is comforting to know that some politicians, like Harkin, Begich, Reed, and Brown truly care about our plight and want to come up with viable solutions. They urged everyone to reach out to their leaders. I call upon all of you to do this once again. Just as the Senators on the phone said, reach out to your leaders at the city, state, and national levels, and insist that they come up with short-term and long-term solutions to bring an end to this crisis. Without our hard-work, these senators wouldn't be able to push for change.
Reader Publicly Thanks Me: "You present these issues in such a calm, rational, and unemotional manner but with great moral clarity, and this is exactly the right way to raise awareness."
It is inevitable. If you decide to stick your neck out for a cause you believe in, you get attacked from all sides. That is simply a reality of speaking up and insisting that something about a system - any system that many people don't necessarily notice - is deeply flawed and unjust. In this case, as we know, it is about exposing the predatory nature of the student lending industry. As one friend recently put it, this unregulated, predatory industry has led to one of the biggest payday lending scams in U.S. history. I have the numbers to prove it, but for now one number will suffice: $1 trillion in outstanding student loan debt. That pretty much sums up this payday lending scam.
Suffice to say, there is a lot at stake when analyzing and critiquing the student lending industry and all of its various facets. So, it will comes as no surprise to most of you - and many of you are aware of this fact - that I receive a lot of nasty emails from hateful, spiteful, bitter people. Conversely, I have built a strong network of people who not only support my work, but are also helping me spread the word. Just recently, for example, I received a grant to write an in-depth article on the crisis.
My gratitude runs deep. I am deeply thankful to the all the journalists, authors, and professors who have acknowledged my research on the student loan debt crisis, and consider me a fellow colleague. I also appreciate all of my readers and the countless activists who have joined me in this fight. There is also my amazing publicist, Kathy Horn. She is invaluable and always there to support my efforts. The same goes for my literary agent, Diana Finch, who has been working with me tirelessly on finalizing my book proposal. In addition, I have business leaders, like my husband's boss, who have encouraged me to fight for change. The business people in particular have also made me realize the challenges of being an entrepreneur, especially when fighting for those who have no money, no power, and have been sold a bill of goods by a corrupt and broken system. After reading Gary Rivlin's Broke, USA: From Pawnshops to Poverty, Inc. - How the Working Poor Became Big Business, I understand more clearly how the indentured educated class are part of what drives, what Rivlin calls, the poverty industry. The model of the poverty industry is now on every campus in the United States, and even at your closest mall (more on that later). Financial aid officers are a new incarnation of the payday lender.
But let's get back to gratitude. I am most grateful to my family. Without the tremendous support from my in-laws, I would not have been able to become a full-time activist and writer. Most importantly, I want to share my deep thanks to my husband. In a few months we will be celebrating our 10th anniversary. He has never once told me to throw in the towel or questioned my work on this topic. (He has had to endure many Friday nights alone, waiting for me to get off the phone or put down the computer, to enjoy some time as a couple. Rarely does he ever voice any complaints about the long hours I work). In my darkest moments, he is always there for me. When I have doubted the validity of my activism, he has reminded me of all of you out there, the people who believe in me. On top of that, he has let me know how much he believes in me. And now, after being together for close to a decade, I am more deeply in love with him than ever. (If you can 'pick' up one of these - a partner like my husband - I recommend it!)
It is critical to remind myself of all of the thank you notes and words of encouragement that land in my inbox on a regular basis. Unfortunately, that seems to be easily forgotten when I receive the hate mail. As many of us know, people on the Internet can be vicious and cruel. You meet them in person? Well, that's another story.
Since I write about sensitive topics and readers share intimate details of their struggles with me, I decided long ago to moderate every single comment that comes my way. (This also helps with SPAM, like the ad I just got that said, "Buy Viagra." It had a dumb link to that lame product). In any event, I oftentimes hate opening these cruel messages, because they are filled with unkind words. Of course, that is often not the case, but I'm human and bullying tactics online are bothersome at times. On the flip side, I realize that my message has been amplified, because those who despise my position are now visiting the site. That is really a good thing.
In any event, I received a very kind note today and wanted to share it with all of you. It was in response to my interview about suicidal student loan debtors with Rose Aguilar.
Here's what the reader said:
I want to thank you for your lovely note, and when the time comes and you're ready, I hope you join us in our fight.
It is important to be grateful, and that I am. That I am.
On a final note, I agree entirely with this reader's remarks about staying above the fray. While I have been critical of the GOP, I have also critiqued the Democrats. On Friday, I had a lengthy and positive conversation with a staffer who works for a Republican Congressman. And next week, I will resume talks with staffers who work for Democrats. I don't give a damned if you're a big D or a big R or a this or a that, if you wanna join me and solve this problem then let's do it.
Suffice to say, there is a lot at stake when analyzing and critiquing the student lending industry and all of its various facets. So, it will comes as no surprise to most of you - and many of you are aware of this fact - that I receive a lot of nasty emails from hateful, spiteful, bitter people. Conversely, I have built a strong network of people who not only support my work, but are also helping me spread the word. Just recently, for example, I received a grant to write an in-depth article on the crisis.
My gratitude runs deep. I am deeply thankful to the all the journalists, authors, and professors who have acknowledged my research on the student loan debt crisis, and consider me a fellow colleague. I also appreciate all of my readers and the countless activists who have joined me in this fight. There is also my amazing publicist, Kathy Horn. She is invaluable and always there to support my efforts. The same goes for my literary agent, Diana Finch, who has been working with me tirelessly on finalizing my book proposal. In addition, I have business leaders, like my husband's boss, who have encouraged me to fight for change. The business people in particular have also made me realize the challenges of being an entrepreneur, especially when fighting for those who have no money, no power, and have been sold a bill of goods by a corrupt and broken system. After reading Gary Rivlin's Broke, USA: From Pawnshops to Poverty, Inc. - How the Working Poor Became Big Business, I understand more clearly how the indentured educated class are part of what drives, what Rivlin calls, the poverty industry. The model of the poverty industry is now on every campus in the United States, and even at your closest mall (more on that later). Financial aid officers are a new incarnation of the payday lender.
But let's get back to gratitude. I am most grateful to my family. Without the tremendous support from my in-laws, I would not have been able to become a full-time activist and writer. Most importantly, I want to share my deep thanks to my husband. In a few months we will be celebrating our 10th anniversary. He has never once told me to throw in the towel or questioned my work on this topic. (He has had to endure many Friday nights alone, waiting for me to get off the phone or put down the computer, to enjoy some time as a couple. Rarely does he ever voice any complaints about the long hours I work). In my darkest moments, he is always there for me. When I have doubted the validity of my activism, he has reminded me of all of you out there, the people who believe in me. On top of that, he has let me know how much he believes in me. And now, after being together for close to a decade, I am more deeply in love with him than ever. (If you can 'pick' up one of these - a partner like my husband - I recommend it!)
It is critical to remind myself of all of the thank you notes and words of encouragement that land in my inbox on a regular basis. Unfortunately, that seems to be easily forgotten when I receive the hate mail. As many of us know, people on the Internet can be vicious and cruel. You meet them in person? Well, that's another story.
Since I write about sensitive topics and readers share intimate details of their struggles with me, I decided long ago to moderate every single comment that comes my way. (This also helps with SPAM, like the ad I just got that said, "Buy Viagra." It had a dumb link to that lame product). In any event, I oftentimes hate opening these cruel messages, because they are filled with unkind words. Of course, that is often not the case, but I'm human and bullying tactics online are bothersome at times. On the flip side, I realize that my message has been amplified, because those who despise my position are now visiting the site. That is really a good thing.
In any event, I received a very kind note today and wanted to share it with all of you. It was in response to my interview about suicidal student loan debtors with Rose Aguilar.
Here's what the reader said:
Agree with the first commenter, you are a truly inspiring individual.
I bookmarked this blog a while back but need to follow it more regularly, for no other reason then to remind myself there are people left in the world such as Cryn Johanssen [sic] who actually care about the plight of others.
I dodged the student loan bullet many years ago through sheer dumb luck but looking back, could easily have been caught as badly as those for whom you advocate. I worry about these young people all the time, especially those who are unemployed and severely underemployed. They are always in my prayers and as well as my thoughts. I try to discuss this issue with people of various ages and backgrounds but their eyes glaze over, they do not wish to know since it does not effect them directly. I think about the cruelty these young folks must face on a daily basis from arrogant people who blame them for their plight, and as a result the discouragement and despair which they must carry in addition to the actual debt. My heart aches.
May you be blessed, protected, and strengthened in this fight you have taken on. You present these issues in such a calm, rational, and unemotional manner but with great moral clarity, and this is exactly the right way to raise awareness.
My only suggestion (and you may know this already)- do not let this become a partisan issue. Remain above the vicious left-right fray that has poisoned American political discourse, only highlighting political sides when the issue is being addressed effectively by particular politicians.
Should my own circumstances change for the better, I would be proud to be able to join you in this fight.
I want to thank you for your lovely note, and when the time comes and you're ready, I hope you join us in our fight.
It is important to be grateful, and that I am. That I am.
On a final note, I agree entirely with this reader's remarks about staying above the fray. While I have been critical of the GOP, I have also critiqued the Democrats. On Friday, I had a lengthy and positive conversation with a staffer who works for a Republican Congressman. And next week, I will resume talks with staffers who work for Democrats. I don't give a damned if you're a big D or a big R or a this or a that, if you wanna join me and solve this problem then let's do it.
Monday, June 11, 2012
Cryn Johannsen on student debt & suicide: "It's an unnecessary problem."
Rose Aguilar (@roseaguilar), who is a journalist and radio host of "Host of Your Call" on KALW 91.7 FM in San Francisco, interviewed me recently in the city. Rose also had me on her radio show in May, and we discussed the issue of suicidal student debtors.
When Rose and I met in San Francisco a few weeks ago, we discussed the problem again.
Check it out here:
When Rose and I met in San Francisco a few weeks ago, we discussed the problem again.
Check it out here:
Sunday, June 10, 2012
Announcement: All Education Matters Is Expanding and Launching a Radio Show and Magazine
All Education Matters is expanding! I am pleased to announce that we are launching a radio show and online magazine called Matters of Today. We will laugh at life, hear from new artists, and also have well-rounded discussions on pressing issues of today. Student loans, education, social change, health, career issues, the global economy, and so forth will be covered. I am pleased to say that this endeavor - Matters of Today - is a partnership with my publicist Kathy Horn of Roadrunner Talent and Media. As I said, we will discuss serious topics, but will also emphasize the levity in life. There is a fine balance between good and bad, and Matters of Today will be committed to offering this type of approach. We invite you to join us on this new adventure, and we're sure you will enjoy our lively conversations with amazing guests.
The radio show will launch during the last week of July.
Stay tuned for details and follow us on twitter @MattersOfToday.
If you want to be considered as a guest , please send an email to MattersofToday@aol.com. Finally, if you have a topic that you want us to cover, please let us know.
If you want to be considered as a guest , please send an email to MattersofToday@aol.com. Finally, if you have a topic that you want us to cover, please let us know.
 | |||||
| Pieter Bruegel, Kermesse (circa 1525 - 69), Kunsthistoriches Museum, Wien |
Homo ludens - we are at our best when we are at play.
Tuesday, June 5, 2012
My Interview on CNN's Newsroom With Carol Costello
Here's my interview on CNN's Newsroom with Carol Costello. I was invited on to speak about the student loan rate battle, but also made a point to discuss the student lending crisis and why "loan forgiveness" is such awful rhetoric.
I also wanted to follow-up at the end and point out some of the inaccuracies mentioned by the other expert. I was on Headline News and was able to address some of the comments she made a week later, so I was pleased with that (I wasn't able to discuss it directly with her, but with the anchor on that show). And, I am sure there will be another opportunity to discuss those matters on CNN or HLN!
See the clip below.
I also wanted to follow-up at the end and point out some of the inaccuracies mentioned by the other expert. I was on Headline News and was able to address some of the comments she made a week later, so I was pleased with that (I wasn't able to discuss it directly with her, but with the anchor on that show). And, I am sure there will be another opportunity to discuss those matters on CNN or HLN!
See the clip below.
Monday, June 4, 2012
Chris Hedges: Quebec's Fight Is Our Fight
Chris Hedges is absolutely right. All eyes should be on Quebec right now. I also urge all student debtors to begin wearing a red square, a symbol, as Hedges notes, of revolt. The symbol means that one is "squarely in the red (carrement dans le rouge)," and "crushed by debt." I think most of us here can relate to that. The reformists don't get this massive change in consciousness, and they will continue to hide behind their computers, urging people to sign petitions. If you dare suggest that this type of "activism" is futile, they will hiss and scream and make outrageous claims about how much better their plan is than anything else. They will beat their chests in rage, and ignore the horizontal protests, the swarms of democracy lovers, in the process. But the collective voices who demand true change cannot be stopped, not even by the screeching reformers who claim to be on our side.
Indeed, the protests in the streets of Montreal have not stopped, and it is now, as Hedges notes, "the longest and largest student protest in Canadian history." A few weeks ago, 500,000 people took to the streets of Montreal to protest austerity and so-called reforms. The city itself has 1.6 million inhabitants! This protest occurred after a law - Bill 78 - was passed outlawing freedom to assembly in Quebec.
They are a model for all protesters across the globe. They are hungry for democracy, and done with the tyranny of neoliberalism.
This means it is also time to Occupy Student Debt here.
Indeed, the protests in the streets of Montreal have not stopped, and it is now, as Hedges notes, "the longest and largest student protest in Canadian history." A few weeks ago, 500,000 people took to the streets of Montreal to protest austerity and so-called reforms. The city itself has 1.6 million inhabitants! This protest occurred after a law - Bill 78 - was passed outlawing freedom to assembly in Quebec.
They are a model for all protesters across the globe. They are hungry for democracy, and done with the tyranny of neoliberalism.
This means it is also time to Occupy Student Debt here.
 |
| Photo Credit: Photomaxmtl |
Friday, June 1, 2012
Word of Truth Today
My pal, Charles Bivona (@charlesbivona), spoke the best word of truth today: "Tuition is theft."
Es klingt richtig!
Es klingt richtig!
Thursday, May 31, 2012
And some want to 'work' with Sallie Mae?!?
Some reformers apparently want to "work" with Sallie Mae. Disgusting. Disgusting. Disgusting. That's like the 99% asking to "work" with Wall Street to solve the austerity crisis, or pro-Obamaites reaching out to Trump and the birthers to clear that b$*%# up. Just watch the language deteriorate with the reformers, just watch it. I've already seen it changing. It's weakening. Weakening tremendously. Oh, boy, here we go again . . .
| Reformer: "We should reach out to him, and 'work' with this guy on the birther issue! Yeah. Great idea!" |
Mark Your Calendars: NYC's First Debtors Assembly, June 10th, 2012
If you are the NYC area, I encourage you to attend the first Debtors Assembly on June 10th.
In order to denounce our debt bondage, we must come together collectively in order to succeed. Read the Occupy Student Debt Campaign statement closely, too.
Have fun overcoming your shame of being a debtor.
Indentured Educated Citizens Unite!
Facebook: http://www.facebook.com/OccupyStudentDebtCampaign
Twitter: @StdntDebtPledge
Website: Occupy Student Debt Campaign
In order to denounce our debt bondage, we must come together collectively in order to succeed. Read the Occupy Student Debt Campaign statement closely, too.
Have fun overcoming your shame of being a debtor.
Indentured Educated Citizens Unite!
Facebook: http://www.facebook.com/OccupyStudentDebtCampaign
Twitter: @StdntDebtPledge
Website: Occupy Student Debt Campaign
Crucial Read: A Statement from the Occupy Student Debt Campaign
Occupy Student Debt Campaign recently released a lengthy statement about their mission. They differentiate themselves from other groups - who are, in my view, reformist - quite well in this manifesto. I applaud their efforts, and encourage you to get involved with supporting and promoting their collective activism. The group truly understands a horizontal approach to attacking this monstrous problem. More than anything, the principles explained below demonstrate a keen awareness of how neoliberalism has destroyed higher education (and education overall) as a public good. This is at the heart of the problem, so no type of reform, which if anything were to pass would be utterly watered down, will suffice. Reform through legislation, though admirable, will not adequately address the crisis we are now facing.
Here's their statement:
Everybody is now talking about the student debt crisis, but nothing is being done about it.
Thanks in large part to the great public amplifier of the Occupy movement, this year’s presidential contenders have been forced to embrace student loan reform as a talking point in their respective campaigns. But the debt relief being pushed by the Obama administration is a token gesture, aimed at getting some traction on the youth vote -- especially the more disillusioned or alienated student constituencies. Recent bills introduced in Congress -- Student Loan Forgiveness Act (H.R. 4170) and the Private Student Bankruptcy Fairness Act (H.R. 2028) -- have zero chance of passing in anything like their current form. Practically speaking, no reform program of any substance is on the legislative horizon, least of all one that would regulate the predatory lending practices of Wall Street banks.
The truth is that student debt relief is too important to be left to elected officials. They are chronically dependent on the financial backing of the lending industry, and are structurally incapable of addressing this crisis, let alone resolving it. As a result, reform initiatives such as Student Loan Justice and Forgive Student Debt (to Stimulate the Economy) that have been aimed at petitioning lawmakers have very little to show for all their hard effort.
The recent federal modifications in payment schedules are micro-cosmetic compared to the sea-change that is required to free debtors of their intolerable burdens and rescue higher education from its increasing use as a profit engine for financiers, asset speculators, and real estate developers. The pathway to this outcome does not lie in futile pleas for economic reform, but through a political movement, driven by self-empowerment and direct action on the part of debtors.
The Occupy Student Debt Campaign was launched at Zuccotti Park in November 2011 with the goal of building a student debt abolition movement. Our campaign is based on principles for which we believe there is widespread support
1) Free public education, through federal coverage of tuition fees.
2) Zero-interest student loans, so that no one can profit from them
3) Fiscal transparency at all universities, public as well as private
4) The elimination of current student debt, through a single act of relief.
These are interlocking principles, and should not stand on their own. Imagine a world in which lawmakers were to respond positively to the current calls for debt “forgiveness” (an unfortunate term that implies the debtor has sinned). Such a measure would offer much-needed relief, but it would still disadvantage future debtors if it were not complemented by remedies that brought to an end the practice of compelling students to privately fund higher education by going into debt bondage. So, too, a singular focus on reducing interest rates (even to zero) is more likely to encourage colleges to increase their fees than to open up equitable access to education.
In light of Wall Street’s stranglehold on Congress, the Occupy Student Debt Campaign holds that alternative strategies are necessary to promote and publicize our principles. That is why it endorses the practice of debt refusal as a legitimate response to the predicament of individuals and communities targeted by predatory lenders, or by state officials seeking to pass on the costs of the financial crisis in the guise of austerity measures. Greece, Chile, England, Italy, Spain, and Quebec have all seen popular revolts against government efforts to preserve, and extend, the power of financial elites to discipline selected populations. With each new outbreak of people’s voices, the imposition of debt is publicly exposed, not simply as a means of redistributing wealth upwards, but also as an instrument of social control.
Under current U.S. laws, defaulting on a student debt carries serious penalties. These laws are unjust, but they are a sharp deterrent to individuals who might otherwise consider refusing their debts. In response, our campaign advocates collective action. Even in its absence, the default rates are accelerating, with alarming consequences. Our Pledge of Refusal is framed as a debt strike threat (debtors pledge to withhold payments once a million others have signed). We welcome, and will support, other forms of debt refusal/strike that are consistent with the aim of building a broad political movement.
The culture of honoring all debts, even those unjustly incurred, is not universally respected, least of all on Wall Street. Loans are new forms of money and credit. They are created from nothing for the ultimate benefit of the lender; they are little more than numbers on a computer screen. Bankers know this, and so they treat their own debts accordingly, as matters to be renegotiated, restructured, or written off. Only the little people are supposed to pay in full. As this double standard becomes more and more apparent, debt refusal will emerge as the most rational response to an immoral predicament.
The struggle over wages was a defining feature of the industrial era. We believe that the struggle over debt will play a similar role in our own times. Not because wage-conflict is over (it never will be), but because debts, for most people, are the wages of the future.
Join Us!
The Occupy Student Debt Campaign
Web: www.occupystudentdebtcampaign.org
Twitter: @StdntDebtPledge
Facebook: OccupyStudentDebtCampaign
(N.B. Our campaign tactics differ from those who own the Occupy Student Debt domain name, and who have no relationship to Occupy Wall Street)
Here's their statement:
Everybody is now talking about the student debt crisis, but nothing is being done about it.
Thanks in large part to the great public amplifier of the Occupy movement, this year’s presidential contenders have been forced to embrace student loan reform as a talking point in their respective campaigns. But the debt relief being pushed by the Obama administration is a token gesture, aimed at getting some traction on the youth vote -- especially the more disillusioned or alienated student constituencies. Recent bills introduced in Congress -- Student Loan Forgiveness Act (H.R. 4170) and the Private Student Bankruptcy Fairness Act (H.R. 2028) -- have zero chance of passing in anything like their current form. Practically speaking, no reform program of any substance is on the legislative horizon, least of all one that would regulate the predatory lending practices of Wall Street banks.
The truth is that student debt relief is too important to be left to elected officials. They are chronically dependent on the financial backing of the lending industry, and are structurally incapable of addressing this crisis, let alone resolving it. As a result, reform initiatives such as Student Loan Justice and Forgive Student Debt (to Stimulate the Economy) that have been aimed at petitioning lawmakers have very little to show for all their hard effort.
The recent federal modifications in payment schedules are micro-cosmetic compared to the sea-change that is required to free debtors of their intolerable burdens and rescue higher education from its increasing use as a profit engine for financiers, asset speculators, and real estate developers. The pathway to this outcome does not lie in futile pleas for economic reform, but through a political movement, driven by self-empowerment and direct action on the part of debtors.
The Occupy Student Debt Campaign was launched at Zuccotti Park in November 2011 with the goal of building a student debt abolition movement. Our campaign is based on principles for which we believe there is widespread support
1) Free public education, through federal coverage of tuition fees.
2) Zero-interest student loans, so that no one can profit from them
3) Fiscal transparency at all universities, public as well as private
4) The elimination of current student debt, through a single act of relief.
These are interlocking principles, and should not stand on their own. Imagine a world in which lawmakers were to respond positively to the current calls for debt “forgiveness” (an unfortunate term that implies the debtor has sinned). Such a measure would offer much-needed relief, but it would still disadvantage future debtors if it were not complemented by remedies that brought to an end the practice of compelling students to privately fund higher education by going into debt bondage. So, too, a singular focus on reducing interest rates (even to zero) is more likely to encourage colleges to increase their fees than to open up equitable access to education.
In light of Wall Street’s stranglehold on Congress, the Occupy Student Debt Campaign holds that alternative strategies are necessary to promote and publicize our principles. That is why it endorses the practice of debt refusal as a legitimate response to the predicament of individuals and communities targeted by predatory lenders, or by state officials seeking to pass on the costs of the financial crisis in the guise of austerity measures. Greece, Chile, England, Italy, Spain, and Quebec have all seen popular revolts against government efforts to preserve, and extend, the power of financial elites to discipline selected populations. With each new outbreak of people’s voices, the imposition of debt is publicly exposed, not simply as a means of redistributing wealth upwards, but also as an instrument of social control.
Under current U.S. laws, defaulting on a student debt carries serious penalties. These laws are unjust, but they are a sharp deterrent to individuals who might otherwise consider refusing their debts. In response, our campaign advocates collective action. Even in its absence, the default rates are accelerating, with alarming consequences. Our Pledge of Refusal is framed as a debt strike threat (debtors pledge to withhold payments once a million others have signed). We welcome, and will support, other forms of debt refusal/strike that are consistent with the aim of building a broad political movement.
The culture of honoring all debts, even those unjustly incurred, is not universally respected, least of all on Wall Street. Loans are new forms of money and credit. They are created from nothing for the ultimate benefit of the lender; they are little more than numbers on a computer screen. Bankers know this, and so they treat their own debts accordingly, as matters to be renegotiated, restructured, or written off. Only the little people are supposed to pay in full. As this double standard becomes more and more apparent, debt refusal will emerge as the most rational response to an immoral predicament.
The struggle over wages was a defining feature of the industrial era. We believe that the struggle over debt will play a similar role in our own times. Not because wage-conflict is over (it never will be), but because debts, for most people, are the wages of the future.
Join Us!
The Occupy Student Debt Campaign
Web: www.occupystudentdebtcampaign.org
Twitter: @StdntDebtPledge
Facebook: OccupyStudentDebtCampaign
(N.B. Our campaign tactics differ from those who own the Occupy Student Debt domain name, and who have no relationship to Occupy Wall Street)
Wednesday, May 30, 2012
Quick Note: Lots of Eyeballs Looking At . . .
Suicide and student loans
as well as
Fleeing the country to avoid debt
as well as
Fleeing the country to avoid debt
| This eyeball is looking at your eyeballs |
Subscribe to:
Posts (Atom)