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:

This story was produced by the independent Economic Hardship Reporting Project, co-edited by Barbara Ehrenreich and Gary Rivlin.

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.

 Read the rest of the story here. 

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 . . .

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.

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:

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.

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.

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.

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.