The Student Debt System by Pam Brown

"The misunderstanding most Americans have of the student debt cycle is particularly dangerous now that the amount of education debt is about to pass the 1 trillion dollar mark, which amounts to about four thousand dollars for every man, woman and child in this country. According to the Project on Student Debt, of the class of 2008, 41% are either delinquent or in default. Many recent reports have already begun to theorize student debt as the next bubble about to burst. Unfortunately, this bubble has the potential to slowly ooze, causing unrelenting suffering for a generation, and even greater economic disparity for the 99%."

"Between the 1980s and now, higher education tuition has increased by about 300%.  Whereas until 1976 City University of New York (CUNY) was completely free, today "public" education is paid for by private student debt. Ironically, this debt, which is a form of privatization, has been encouraged by our government. Interestingly, "private" institutions are also financed through student debt. Although this debt financing is facilitated by our government, "private" institutions are completely unaccountable to the public.  Under close inspection, the lines between public and private have become so blurred that the distinction is a mere formality."

"Furthermore, these tuition hikes are not checked by the consumer's actual ability to spend. Unlike buying a house, the customer's income is not evaluated, and an education is not appraised. Tuition hikes are solely contingent on the ability of the student to go into debt. Furthermore, most tuition increases are authorized by boards of trustees comprised of wealthy individuals who frequently benefit from investment in financial markets that are buoyed by deepening student debt."

"As the system currently operates it is both unjust and unsustainable. It is unsustainable because these debts grow exponentially, if they are not paid. Only 37% of student loans are paid without delay. As of around 2009, five million loans were in default. The system is unjust because it places an enormous and impossible burden on the debtor. The burden of these debts often result in delaying of life stage events such as marriage, buying home, and having a child, and corresponding depression and anxiety. The burden of this debt is creating a generation with far fewer ties to community and family.'

"As banks make obscene profits, students become indentured upon graduation from college. Once indentured, they must work for whatever pay is available and under any and all conditions.  Frequently, this means underemployment, which often lasts a lifetime."

"Even though many believe that American society has high social mobility based on meritocracy this is factually untrue. A son born to a father in the bottom 20% economic bracket has less than a 5% chance of ever earning $60,000 per year.  A critical factor in the lack of social mobility is the lack of access to education."

"Once the student loan system is examined, it becomes obvious that it is by no means benevolent. It is a system designed by our government in cahoots with the banking system and the boards of our institutions of higher learning."