"In his book The Price of Civilization, Jeffrey Sachs argues that the cost of making all public higher education free in America would be between 15-30 billion dollars. While this may sound like a large sum, it could actually save money."
"First of all, the government is currently spending billions of dollars on for-profit schools and other colleges and universities that have very low graduation rates. In fact, what is going on in the state of California is that as students get priced out of the University of California, they either drop out or go to community colleges. Meanwhile as community colleges are defunded, they are forced to cut their enrollments and raise their fees, and the result is that students end up going to high-cost for-profit schools that have a very low graduate rate. In other words, in the current system, everyone pays more, and we produce fewer graduates."
"Currently, only 30% of Americans who start college or university end up graduating, and this represents a huge waste of time and money. If students did not have to work while in school, the graduation rate would improve drastically, and students at universities could graduate in four years instead of six or more years. In fact, the biggest reason why students drop out of higher education is that they cannot afford the high cost of tuition."
"Not only is higher education seen as a key to economic advancement, but if all 18-24 year olds were in college, we would reduce the unemployment rate by 2 million people, and fewer people would be in need of governmental assistance. Moreover, a federal program to fund higher education would relieve states of having to fund these institutions, which would free up money for other needed services."
"While the US has a free K-12 public education, its failure to fund higher education means that America's economy is unable to compete with other developed nations that have free universities."
"Furthermore, by removing the need for students to go into debt, the government would allow graduates to be more productive, and they would have more money to spend, which in turn would act as a stimulus for the economy."
"Of course, there are reasons beyond economics to provide free higher education. Not only do we need a more educated workforce, but we also need more educated citizens. It is also important to point out that people with higher education degrees report a higher level of health and happiness. In fact, societies with a high rate of degree attainment have lower crime rates and higher rates of social welfare."
"While few people would now reject the idea of compulsory K-12 education, it is now time to make college universal and free."
Showing posts with label Government. Show all posts
Showing posts with label Government. Show all posts
Student Loan Countdown:Beyoncé "Countdown" Parody
"went off to school to get my education
little did i know debt was part of the equation
could of dropped out but that's a bad situation
if you don't pay up they'll garnish your wages"
"sallie mae and the government make bank
if i default
but i can't find a job
so that's not my fault"
"me and my boo yeah we wanna get married
my debt is a load that we both gotta carry
didn't know my interest rate would be 12%
payments just high as New York City rent"
Visit Franchesca Leigh Ramsey
Mike Konczal on the Submerged StateSurrounding Student Debt
"One of the Occupy movement’s major objectives is combating the privatization of public higher education and its replacement with a debt-fueled economy of indenture."
"This is an example of what Suzanne Mettler calls “the submerged state,” a pattern where the government has, as she says, “shunned the outright disbursing of benefits to individuals and families and favored instead less visible and more indirect incentives and subsidies, from tax breaks to payments for services to private companies. These submerged policies…obscure the role of government and exaggerate that of the market.” Instead of directly providing public options, we subsidize the purchasing of private goods, often using the tax code."
"Let’s take the case of student debt and the tax code. How much would it cost to make public colleges and universities free? Rough estimates (quoting Jeffrey Sach’s latest book) put the price of free public higher education at $15-$30 billion, which fits other estimates I’ve seen.
"This is an example of what Suzanne Mettler calls “the submerged state,” a pattern where the government has, as she says, “shunned the outright disbursing of benefits to individuals and families and favored instead less visible and more indirect incentives and subsidies, from tax breaks to payments for services to private companies. These submerged policies…obscure the role of government and exaggerate that of the market.” Instead of directly providing public options, we subsidize the purchasing of private goods, often using the tax code."
"Let’s take the case of student debt and the tax code. How much would it cost to make public colleges and universities free? Rough estimates (quoting Jeffrey Sach’s latest book) put the price of free public higher education at $15-$30 billion, which fits other estimates I’ve seen.
"$22.75 billion we are paying through the tax code to make college tuition and student debt more manageable. This amount is in the middle the range of the cost of just making public high education free. Now these aren’t equivalent — much of what is spent through the tax code will be biased more towards private and professional schools, which are more expensive. But this also isn’t anywhere near the full extent we subsidize student debt (a government creation from 1965)."
"But there is a choice in how to provide mass higher education. We can either use resources to reduce the price of the good upfront — make college free — or to subsidize the purchase of the good — here through the numerous hoops of the tax code. The amount of money we take from the tax code to try and make student debts and runaway tuition more bearable could be used instead to just provide free public colleges."
"There are winners and losers in each case. When we subsidize through the tax code, people who are well off and pay more taxes benefit more. People who can afford support staff, such as accountants and lawyers, are also more likely to understand how to take maximum advantage of these benefits. These subsidies benefit private educational institutions over public ones, as they’ll make private education feel more “natural” while obscuring the role of the government in setting up these markets. They give public college a nudge towards corporatization and privatization."
"Much of these subsidies are likely captured either by the higher education institutions themselves or the debt lenders. These subsidies will make tuition and debt easier to deal with, but providing colleges free as a public option would likely do far more to contain costs (also here)."
"Most importantly, it breaks the link between citizenship and education. The subsidy approach replaces the claim of a citizen to a necessary good to be full, participating person in our market economy with the claim of a consumer, whose claim is ultimately one of willingness to pay either through wealth or debt, with a “nudge” from the government. The first kind is the place where progressives have the stronger argument about freedom, as opposed to those who see the market as the only source of freedom available."
"But there is a choice in how to provide mass higher education. We can either use resources to reduce the price of the good upfront — make college free — or to subsidize the purchase of the good — here through the numerous hoops of the tax code. The amount of money we take from the tax code to try and make student debts and runaway tuition more bearable could be used instead to just provide free public colleges."
"There are winners and losers in each case. When we subsidize through the tax code, people who are well off and pay more taxes benefit more. People who can afford support staff, such as accountants and lawyers, are also more likely to understand how to take maximum advantage of these benefits. These subsidies benefit private educational institutions over public ones, as they’ll make private education feel more “natural” while obscuring the role of the government in setting up these markets. They give public college a nudge towards corporatization and privatization."
"Much of these subsidies are likely captured either by the higher education institutions themselves or the debt lenders. These subsidies will make tuition and debt easier to deal with, but providing colleges free as a public option would likely do far more to contain costs (also here)."
"Most importantly, it breaks the link between citizenship and education. The subsidy approach replaces the claim of a citizen to a necessary good to be full, participating person in our market economy with the claim of a consumer, whose claim is ultimately one of willingness to pay either through wealth or debt, with a “nudge” from the government. The first kind is the place where progressives have the stronger argument about freedom, as opposed to those who see the market as the only source of freedom available."
BBC: Students turning to prostitution to fund studies
"Greater numbers of students in England are turning to prostitution to fund their education, the National Union of Students (NUS) claims. The NUS also says students are turning to gambling and taking part in medical experiments to fund their studies."
"In an economic climate where there are very few jobs, where student support has been massively cut, people are taking more work in the informal economy, such as sex work. It's all dangerous unregulated work, simply so people can stay in education."
"The English Collective of Prostitutes, which runs a helpline from its base in London, says the number of calls it receives from students had at least doubled in the past year. "They [ministers] know that the cuts they're making are driving women into things like sex work. It's a survival strategy so we would hold the government responsible for that.""
"Eighteen-year-old Clare - not her real name - turned to escorting during her A-levels when she found out her education maintenance allowance (EMA) was in danger of being cut. "I had a friend who'd been trying to get me to join his escort agency since I was 16. He was telling me stories about how much I could earn, how the hours would fit around me, that I could control who I saw, when I saw them and how often. It just sounded more desirable. I couldn't see any other option. Clare, who has now left the adult industry to continue her studies, warns against working in the sex industry. "I did this so I could go to college, go to university, for it to have a positive effect on the rest of my life.
"But I'm a different person to how I was when I started out. I've lost a lot of my confidence and I've lost trust in a lot of people.
"In an economic climate where there are very few jobs, where student support has been massively cut, people are taking more work in the informal economy, such as sex work. It's all dangerous unregulated work, simply so people can stay in education."
"The English Collective of Prostitutes, which runs a helpline from its base in London, says the number of calls it receives from students had at least doubled in the past year. "They [ministers] know that the cuts they're making are driving women into things like sex work. It's a survival strategy so we would hold the government responsible for that.""
"Eighteen-year-old Clare - not her real name - turned to escorting during her A-levels when she found out her education maintenance allowance (EMA) was in danger of being cut. "I had a friend who'd been trying to get me to join his escort agency since I was 16. He was telling me stories about how much I could earn, how the hours would fit around me, that I could control who I saw, when I saw them and how often. It just sounded more desirable. I couldn't see any other option. Clare, who has now left the adult industry to continue her studies, warns against working in the sex industry. "I did this so I could go to college, go to university, for it to have a positive effect on the rest of my life.
"But I'm a different person to how I was when I started out. I've lost a lot of my confidence and I've lost trust in a lot of people.
EU summit: tales of fiscal union and financial adultery
by Jérôme E. Roos
by Jérôme E. Roos
"On Friday morning, a crucial EU summit — touted as the last opportunity to save the euro from collapse — ended in a dramatic split between the UK and the rest of Europe... The break-up marks yet another tectonic shift in European history. But it also reveals the extent to which financial interests have corrupted the minds of our leaders and soured their mutual relations."
"This was never a clash over the European interest versus the British interest, as both continental cosmopolitans and British euroskeptics like to portray it. Behind the veil of ideology lurk powerful financial interests dictating the choices of our double-crossing elites."
"More specifically, Cameron demanded that: (1) “any transfer of power from a national regulator to an EU regulator on financial services would be subject to a veto”; (2) “the European Banking Authority should remain in London”; (3) “banks should face a higher capital requirement”; and (4) “the European Central Bank be rebuffed in its attempts to rule that euro-denominated transactions take place within the eurozone.” Sarkozy rejected Cameron’s demands outright."
"The reasons for this are really quite simple: (1) Sarkozy doesn’t want UK-based banks to get a competitive advantage by dodging the European-wide financial transaction tax; (2) he wants the European Banking Authority to move to Paris; (3) he knows French banks are in a much weaker position than their UK counterparts; and (4) he wants euro-denominated transactions to take place within the eurozone so they will be routed via La Défense instead of the City."
"The bottomline is that this is a battle of banks; a clash of capital — it has nothing to do with the general European or British interest. If the eurozone were to break up, many German and French banks would collapse, hence the Franco-German push for fiscal union. Yet such a fiscal union would impose continental-style regulations on the free-for-all City of London. Fearing its competitive position vis-à-vis New York, the UK therefore strongly opposed participation."
"So whenever they tell you “there is no alternative”, don’t believe them — it’s a lie. As a European Central Bank official recently told Reuters, “what I think is important at the moment is not showing politicians that there might be an alternative, because in their mind that might be less costly than the options they have.” The attempt to naturalize and depoliticize this crisis is an ideological smokescreen meant to keep us firmly in a state of financial prostitution."
"The task is upon us to disseminate the truth and get organized. Another Europe is possible!"
"This was never a clash over the European interest versus the British interest, as both continental cosmopolitans and British euroskeptics like to portray it. Behind the veil of ideology lurk powerful financial interests dictating the choices of our double-crossing elites."
"More specifically, Cameron demanded that: (1) “any transfer of power from a national regulator to an EU regulator on financial services would be subject to a veto”; (2) “the European Banking Authority should remain in London”; (3) “banks should face a higher capital requirement”; and (4) “the European Central Bank be rebuffed in its attempts to rule that euro-denominated transactions take place within the eurozone.” Sarkozy rejected Cameron’s demands outright."
"The reasons for this are really quite simple: (1) Sarkozy doesn’t want UK-based banks to get a competitive advantage by dodging the European-wide financial transaction tax; (2) he wants the European Banking Authority to move to Paris; (3) he knows French banks are in a much weaker position than their UK counterparts; and (4) he wants euro-denominated transactions to take place within the eurozone so they will be routed via La Défense instead of the City."
"The bottomline is that this is a battle of banks; a clash of capital — it has nothing to do with the general European or British interest. If the eurozone were to break up, many German and French banks would collapse, hence the Franco-German push for fiscal union. Yet such a fiscal union would impose continental-style regulations on the free-for-all City of London. Fearing its competitive position vis-à-vis New York, the UK therefore strongly opposed participation."
"So whenever they tell you “there is no alternative”, don’t believe them — it’s a lie. As a European Central Bank official recently told Reuters, “what I think is important at the moment is not showing politicians that there might be an alternative, because in their mind that might be less costly than the options they have.” The attempt to naturalize and depoliticize this crisis is an ideological smokescreen meant to keep us firmly in a state of financial prostitution."
"The task is upon us to disseminate the truth and get organized. Another Europe is possible!"
Government leaves some students stuck in default
December 9, 2011
The Chronicle of Higher Education
Department's New Debt-Management System Leaves Some Students Stuck in Default
By Kelly Field
Washington
Problems with the Education Department's online system for managing student debt have cost taxpayers millions of dollars and left thousands of borrowers in financial limbo, unable to put their defaults behind them.
The department acknowledges the problems and says it's working to fix them.
Under federal law, defaulted borrowers who make nine on-time repayments on their student loans can have their loans restored to good standing and their credit histories cleared. Borrowers with such "rehabilitated" loans are eligible for deferments, forbearances, and income-based repayment rates, and can also receive new federal student aid.
The new debt-management system, which tracks and manages more than $33-billion in defaulted student loans owed by more than three million people, is supposed to rehabilitate borrowers each month. It has not done so since August, and some frustrated debtors have stopped making payments on their loans, risking a second default.
Lori Wagner is among them. She took on a second job to cover the $1,350 monthly payment on her defaulted loan and made her ninth payment in October. But her collection agency told her she has to keep paying until the department issues her a new loan, and it can't tell her when that will be.
Ms. Wagner says can't keep working 60 hours a week—it has left her sick and overtired, she says, and it's jeopardizing her full-time job. At this point, she says, she's prepared to default again and let the government garnish her wages. At least, she says, the monthly payment would be lower. "I kept my end of the agreement," she wrote to the National Consumer Law Center. "I am tired, sick, uncaring, and done with this student-loan crap ... just simply done with the whole farce of rehabilitation."
Department's New Debt-Management System Leaves Some Students Stuck in Default
By Kelly Field
Washington
Problems with the Education Department's online system for managing student debt have cost taxpayers millions of dollars and left thousands of borrowers in financial limbo, unable to put their defaults behind them.
The department acknowledges the problems and says it's working to fix them.
Under federal law, defaulted borrowers who make nine on-time repayments on their student loans can have their loans restored to good standing and their credit histories cleared. Borrowers with such "rehabilitated" loans are eligible for deferments, forbearances, and income-based repayment rates, and can also receive new federal student aid.
The new debt-management system, which tracks and manages more than $33-billion in defaulted student loans owed by more than three million people, is supposed to rehabilitate borrowers each month. It has not done so since August, and some frustrated debtors have stopped making payments on their loans, risking a second default.
Lori Wagner is among them. She took on a second job to cover the $1,350 monthly payment on her defaulted loan and made her ninth payment in October. But her collection agency told her she has to keep paying until the department issues her a new loan, and it can't tell her when that will be.
Ms. Wagner says can't keep working 60 hours a week—it has left her sick and overtired, she says, and it's jeopardizing her full-time job. At this point, she says, she's prepared to default again and let the government garnish her wages. At least, she says, the monthly payment would be lower. "I kept my end of the agreement," she wrote to the National Consumer Law Center. "I am tired, sick, uncaring, and done with this student-loan crap ... just simply done with the whole farce of rehabilitation."
NASDAQ: Student loans, America's next financial crisis
Update: This article was removed from the NASDAQ site within 48 hours after its appearance. The cached copy of the complete article has been placed in the second half of this post.
"The problem of rising and unsustainable student loan debt remains largely unacknowledged by the powers that be, though it's a vital cause to many protesters in the Occupy movement."
"The standard argument is that student loans can't be dischargable, because there's nothing to secure them - you can't repossess someone's education. However, the financial industry has used its characteristic ingenuity to find a way around that - in effect, the collateral for student debt is now a lifetime of the debtor's labor, rendered via an unforgiving architecture of wage garnishings, penalties and a pervasive culture of shame. Perhaps the most worrying part of this burgeoning crisis is that it's now understood that many, perhaps most, current students won't be able to pay down their loans."
"And the financiers know exactly what's happening. In a Wall Street Journal article from last month, a hedge fund manager with expertise in the $242 billion student loan-backed bond market (sound familiar?) said he refused to get involved with assets backed by recent student loans because he "can't quantify the risk ." The historical average for default rates figured on a quarter to a third of loans going bust, but another trader said that will probably rise to 40 percent or higher, depending on economic conditions."
"Rising costs are one side of the coin. According to the College Board, tuition costs are set to continue shooting upwards. In-state tuition and fees at public four-year institutions were up by 8.3 percent at $8,244 per year in the 2011-12 year, while private tuition and fees rose 4.5 percent to $28,500."
"On the other side of the coin is unemployment. Among the 16-24 year-old cohort, that now stands at 18 percent; for those 16-19, it's above 25 percent, with a participation rate of less than half. Young people can't get jobs before college, can barely find work during their school years and then face a terrifying job market upon graduation - if they graduate at all."
"The ingredients: nearly a trillion dollars of debt on the books, rising tuition costs, a youth employment market in crisis, undischargeable debt, government-guaranteed loans and an asset -backed bond market worth a quarter of a trillion dollars."
"The problem of rising and unsustainable student loan debt remains largely unacknowledged by the powers that be, though it's a vital cause to many protesters in the Occupy movement."
"The standard argument is that student loans can't be dischargable, because there's nothing to secure them - you can't repossess someone's education. However, the financial industry has used its characteristic ingenuity to find a way around that - in effect, the collateral for student debt is now a lifetime of the debtor's labor, rendered via an unforgiving architecture of wage garnishings, penalties and a pervasive culture of shame. Perhaps the most worrying part of this burgeoning crisis is that it's now understood that many, perhaps most, current students won't be able to pay down their loans."
"And the financiers know exactly what's happening. In a Wall Street Journal article from last month, a hedge fund manager with expertise in the $242 billion student loan-backed bond market (sound familiar?) said he refused to get involved with assets backed by recent student loans because he "can't quantify the risk ." The historical average for default rates figured on a quarter to a third of loans going bust, but another trader said that will probably rise to 40 percent or higher, depending on economic conditions."
"Rising costs are one side of the coin. According to the College Board, tuition costs are set to continue shooting upwards. In-state tuition and fees at public four-year institutions were up by 8.3 percent at $8,244 per year in the 2011-12 year, while private tuition and fees rose 4.5 percent to $28,500."
"On the other side of the coin is unemployment. Among the 16-24 year-old cohort, that now stands at 18 percent; for those 16-19, it's above 25 percent, with a participation rate of less than half. Young people can't get jobs before college, can barely find work during their school years and then face a terrifying job market upon graduation - if they graduate at all."
"The ingredients: nearly a trillion dollars of debt on the books, rising tuition costs, a youth employment market in crisis, undischargeable debt, government-guaranteed loans and an asset -backed bond market worth a quarter of a trillion dollars."
Seattle's Garfield High School Student Walkout and March Against Budget Cuts
"Seattle Public Schools have seen the loss of librarians, much-needed family service counselors and college admissions counselors, the reduction of the arts to “art on a cart” and school principals and staff making difficult decisions on the number of teachers they can budget for. School facilities are in poor condition and many buildings are not safe in terms of earthquake code."
"The students of Garfield High School issued a statement on their Facebook page. It goes as follows:
"The students of Garfield High School issued a statement on their Facebook page. It goes as follows:
"We are Washington State Public Schools students tired of the constant cuts to our education. We are the people who have been affected most by these cuts, and we are showing that we care. For too long, this stat…e’s budget has been balanced on the backs of its students. Apparently, our representatives in Olympia have forgotten that the Washington Constitution says that funding education is this state’s “paramount duty”. This is a student voice reminding our legislature of that fact. And also of this one: We are this country’s future. We will vote. And we will hold them accountable."
"We have two primary goals we hope to accomplish:
-We want to stop the constant cuts to education that have hurt our school and other schools in the state.
-We want to insert a student voice into the political discourse in issues regarding education."
Are student debt strikes coming? with Thom Hartmann and Sarah Jaffe
"Sarah Jaffe, AlterNet, joins Thom Hartmann. For the first time ever - outstanding student loan debt this year will top one trillion dollars. And with tuition for college soaring - and prospects for jobs after college plummeting - the situation for students across America looks grim. But now - with the Occupy Wall Street movement in full swing - student debtors are feeling empowered - and are striking back against the big banks that got bailed out three years ago but are unwilling to help their debt-saddled customers now."
The Austerity Trap & Student Debt at One Trillion with Ian Masters
"We begin with the former Secretary of Labor Robert Reich and discuss the austerity trap that the economy is stuck in with political gridlock and election politics digging the hole deeper. However there is some reason to hope that as the powerful and privileged one percent try to take us back to the Gilded Age, a movement forming might rally the nation to reclaim the American Dream for the 99%."
"Then we look into the shameful growth of student debt that will reach one trillion dollars this year. David Halperin, who is the director of Campus Progress at the Center for American Progress joins us to explain the increasing debt load students are now burdened with as they face a shrinking jobs market, and how lobbyists for the for-profit college industry have managed to get Congress to have taxpayer money charged back to unwitting students at exorbitant rates for a worthless education and a useless diploma."
"Then we look into the shameful growth of student debt that will reach one trillion dollars this year. David Halperin, who is the director of Campus Progress at the Center for American Progress joins us to explain the increasing debt load students are now burdened with as they face a shrinking jobs market, and how lobbyists for the for-profit college industry have managed to get Congress to have taxpayer money charged back to unwitting students at exorbitant rates for a worthless education and a useless diploma."
Wall Street's Pitch to Profit on Federal Student Loans by Jason Delisle
(Oct. 12, 2011) "The investment banking industry – and its friends in Congress – have cooked up a scheme they are pitching to the “supercommittee” that they say would reduce the federal debt and cut federal spending. Supposedly, the plan would take the government’s $555 billion direct student loan holdings off of its books. In reality, the plan, which would allow the bankers to earn fees on a $555 billion deal, plus $100 billion more every year, would not reduce the debt or cut spending. But that hasn’t stopped Wall Street from trying."
"A proposal that could only have been be cooked up by investment bankers is circulating on Capitol Hill. It would refinance the $555 billion direct student loan portfolio with new debt backed 100 percent by the federal government. But this new debt would not be called U.S. Treasury debt, despite the 100 percent guarantee, and therefore not counted as part of the national debt. In other words, the new debt would be used to pay off the old debt (Treasury bonds) that the government issues to finance direct student loans. To be sure, the mechanics of the proposal are more complicated than that, but the effect of the proposal would be to move all outstanding and future student loans from bonds backed 100 percent by taxpayers to another set of bonds backed 100 percent by taxpayers but not counted as part of the national debt."
"A proposal that could only have been be cooked up by investment bankers is circulating on Capitol Hill. It would refinance the $555 billion direct student loan portfolio with new debt backed 100 percent by the federal government. But this new debt would not be called U.S. Treasury debt, despite the 100 percent guarantee, and therefore not counted as part of the national debt. In other words, the new debt would be used to pay off the old debt (Treasury bonds) that the government issues to finance direct student loans. To be sure, the mechanics of the proposal are more complicated than that, but the effect of the proposal would be to move all outstanding and future student loans from bonds backed 100 percent by taxpayers to another set of bonds backed 100 percent by taxpayers but not counted as part of the national debt."
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."
"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."
NYT: Official Calls for Urgency on College Costs
“Three in four Americans now say that college is too expensive for most people to afford,” Mr. Duncan said. “That belief is even stronger among young adults — three-fourths of whom believe that graduates today have more debt than they can manage.”
"College seniors with loans now graduate with an average debt load of more than $25,000. With outstanding student debt nearing $1 trillion — and exceeding credit-card debt — it makes sense that, as Patrick M. Callan, president of the Higher Education Policy Institute, put it, college costs are in the spotlight as never before."
"Just before Thanksgiving, Occupy Wall Street spawned the Occupy Student Debt Campaign, which asks for zero interest on student debt, federally financed public higher education and the forgiveness of all existing debt. At Occupystudentdebtcampaign.com, the campaign asks donors to sign a Pledge of Refusal, which promises that when a million signatures have been gathered, all will cease to make their debt payments."
“It’s basically a strike threat, but it gives debtors, many of whom have gray hair at this point, a way to act collectively, rather than suffer the agony and isolation of their debt,” said Andrew Ross, a New York University professor who is one of the organizers of the campaign. “We think education is a right and a public good, and we think federal funding is the only way the United States can join the list of other countries that offer free public education.”
"College seniors with loans now graduate with an average debt load of more than $25,000. With outstanding student debt nearing $1 trillion — and exceeding credit-card debt — it makes sense that, as Patrick M. Callan, president of the Higher Education Policy Institute, put it, college costs are in the spotlight as never before."
"Just before Thanksgiving, Occupy Wall Street spawned the Occupy Student Debt Campaign, which asks for zero interest on student debt, federally financed public higher education and the forgiveness of all existing debt. At Occupystudentdebtcampaign.com, the campaign asks donors to sign a Pledge of Refusal, which promises that when a million signatures have been gathered, all will cease to make their debt payments."
“It’s basically a strike threat, but it gives debtors, many of whom have gray hair at this point, a way to act collectively, rather than suffer the agony and isolation of their debt,” said Andrew Ross, a New York University professor who is one of the organizers of the campaign. “We think education is a right and a public good, and we think federal funding is the only way the United States can join the list of other countries that offer free public education.”
GAO Audit: At least $16 trillion in secret bank loans since 2008
"The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. "As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world," said Sanders. "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else.""
Comedian Stewart Lee on university funding and the arts
"I think that [withdrawal of grants and the introduction of student loans] was done deliberately to rid us of all of these troublesome thinkers and artists, right? And of conscientious people.
I think if Thatcher could have done it, she would have done it."
Paul Krugman Asked About #OWS Debt Refusal On The Brian Lehrer Show
"Lehrer then asked Krugman what he thought about that branch of the Occupy movement — that is, the group that is encouraging a million students to default on their student loans."
“To be honest, I haven’t done enough homework to figure out what I think,” Krugman replied. “I think the idea that it is a threat to the economy is wrong. It’s just not that big of deal in terms of the economy one way or another, and there is a lot that is wrong with how we handle student debt. Basically, we’ve been using public funds, but running them through the private sector for no good reason, except to provide some extra profits to the financial industry.”
“Forgive Us Our Student Loan Debt?” No Thanks! by Cryn Johannsen
"The language of loan forgiveness is archaic, and why it’s being sloughed off. Those who have promoted this must deal with the fact that we live in very different times now, and that means bolder language is necessary."
"Currently, there is an Occupy Student Debt group calling upon people to sign a pledge to refuse paying their loans. [Full disclosure: Although I am a freelance journalist, I am also an advocate for student loan debtors, and I am currently calling for a debtors' strike. Contrary to the misinformation and lies being circulated about these efforts, there are well-known authors, activists, union organizers, etc. on board with this next move. As an activist, I believe fully in collaboration and do not stick to one particular idea for personal gain. That's not how this works, especially when you are part of OWS]."
"The Washington Post piece also inaccurately pits the call for loan forgiveness against the Occupy Student Debt campaign. If read carefully, it is clear that the groups seek similar things. However, using the terms “loan forgiveness” is poor. As I have stated before, it presumes that the borrower is a sinner and they are to blame for this catastrophe. It does not illustrate the problem in an accurate way, and it is easily dismissed or denigrated. On the other hand, Occupy Student Debt is reasserting the power of borrowers, and insisting that something must be done in a more direct action way. Asking policymakers to forgive of us our sins is not needed. Did borrowers who sought higher education do anything wrong? Absolutely not. So why do they need to ask for any sort of forgiveness?"
"As Mitchel Cohen aptly pointed out:"
"Thank you for this article. There is no contradiction [my emphasis] in principle between seeking legislation that provides ‘debt forgiveness’ and organizing one million student debtors to sign a pledge that they will refuse to pay their debt. In fact, a million student refuseniks can serve as a very strong base from which to accomplish that legislation. On the other hand, putting one’s faith in Congressional reps ‘morality’ (you’re kidding, right?) alone is, I would argue, delusional."
"Do both!"
"Currently, there is an Occupy Student Debt group calling upon people to sign a pledge to refuse paying their loans. [Full disclosure: Although I am a freelance journalist, I am also an advocate for student loan debtors, and I am currently calling for a debtors' strike. Contrary to the misinformation and lies being circulated about these efforts, there are well-known authors, activists, union organizers, etc. on board with this next move. As an activist, I believe fully in collaboration and do not stick to one particular idea for personal gain. That's not how this works, especially when you are part of OWS]."
"The Washington Post piece also inaccurately pits the call for loan forgiveness against the Occupy Student Debt campaign. If read carefully, it is clear that the groups seek similar things. However, using the terms “loan forgiveness” is poor. As I have stated before, it presumes that the borrower is a sinner and they are to blame for this catastrophe. It does not illustrate the problem in an accurate way, and it is easily dismissed or denigrated. On the other hand, Occupy Student Debt is reasserting the power of borrowers, and insisting that something must be done in a more direct action way. Asking policymakers to forgive of us our sins is not needed. Did borrowers who sought higher education do anything wrong? Absolutely not. So why do they need to ask for any sort of forgiveness?"
"As Mitchel Cohen aptly pointed out:"
"Thank you for this article. There is no contradiction [my emphasis] in principle between seeking legislation that provides ‘debt forgiveness’ and organizing one million student debtors to sign a pledge that they will refuse to pay their debt. In fact, a million student refuseniks can serve as a very strong base from which to accomplish that legislation. On the other hand, putting one’s faith in Congressional reps ‘morality’ (you’re kidding, right?) alone is, I would argue, delusional."
"Do both!"
Forgive us our student loan debt by Susan Thistlewaite
"Jesus teaches his disciples to pray, “And forgive us our debts, as we forgive our debtors.” (Matthew 6:12) Forgiving debt is a moral issue. Forgiving some of the worst of this student debt is crucial literally to save this American generation."
"The American economy is also trapped in this cycle of more student borrowing and the mounting student loan debt. ‘Is this the next big credit bubble?’ asks The Economist. What happens to our fragile economy when this next house of cards comes tumbling down?"
"The #Occupy movement is part of this student debt crisis, both in terms of those who owe, and how some may choose do deal with their debt unless Congress acts responsibly."
"None of those calling for action on mounting student loan debt debates that there is a crisis. The division is over how to act: call for legislative action, or take action yourself. Those graduates I talked to on Michigan Avenue are being hurt from the huge burden of their debt, and they were despairing that their elected representatives would actually do anything to help them."
"Currently, I’m advocating debt forgiveness. It is the moral thing to do and it is the right civic thing to do. This is what Jesus actually meant; real debts, real debtors, forgiving and forgiven. This is what government is actually about—of the people, by the people, for the people. We still have a chance to show young people that democracy can work for the common good."
"The American economy is also trapped in this cycle of more student borrowing and the mounting student loan debt. ‘Is this the next big credit bubble?’ asks The Economist. What happens to our fragile economy when this next house of cards comes tumbling down?"
"The #Occupy movement is part of this student debt crisis, both in terms of those who owe, and how some may choose do deal with their debt unless Congress acts responsibly."
"None of those calling for action on mounting student loan debt debates that there is a crisis. The division is over how to act: call for legislative action, or take action yourself. Those graduates I talked to on Michigan Avenue are being hurt from the huge burden of their debt, and they were despairing that their elected representatives would actually do anything to help them."
"Currently, I’m advocating debt forgiveness. It is the moral thing to do and it is the right civic thing to do. This is what Jesus actually meant; real debts, real debtors, forgiving and forgiven. This is what government is actually about—of the people, by the people, for the people. We still have a chance to show young people that democracy can work for the common good."
The New Yorker: Why Nobody Sh*ts In Jail by Keith Gessen
“But there simply cannot be any rule, or any carceral logic, or any arguments whatsoever, for filthy toilets. And sitting there, with the stench from our filthy toilet filling the room, and with the filth in our filthy sink making me less eager than I ought to have been to drink from it, despite being thirsty, I became angry—really, honestly, for the first time. I thought for the first time, with genuine venom, of the hypocrite mayor Michael Bloomberg, a billionaire, who shut down the Occupy Wall Street encampment for reasons of “health and safety” but has not deemed it worthwhile to make sure that the toilets in facilities that he has control of meet even the most minimal standards of health and safety, such that, while I watched, about forty men, eating a total of a hundred meals, over the course of a day and a half, refused to perform a single bowel movement. This was its own form of civil disobedience, I suppose, and if I’d had my wits about me maybe I could have organized a meeting of all the inmates at Bloomberg’s residence, on East Seventy-ninth Street, so that we could all take a giant shit on his front stoop."
"As Elijah made to leave, an officer approached him. An argument ensued. It ended with the officer tackling Elijah onto the group of people sitting behind him. A number of other officers jumped in. Seconds later, Elijah was pulled up to his feet, away from the group, looking dazed, his shirt ripped. This was ugly. The officer who tackled Elijah was an athlete, you could see it in his neck and shoulders, and a grown man; Elijah is a skinny kid. It was also the case that Elijah was one of the few black people at our protest that day; the officer was white."
"Here is another statistic: Over the course of the thirty-two hours we were held at the Tombs, about twenty-five non-protesters cycled through our cell. In any case, out of those twenty-five inmates on their way to hearings, just one was white. One was Asian. A few—maybe three or four—were Hispanic. The rest were black. Is it really possible that non-whites commit ninety-six per cent of all crimes in Manhattan? I don’t know. Perhaps, outside of Wall Street, whites are just very law-abiding. And most of the crimes appeared to be drug-related—perhaps white people don’t do drugs."
I Too Am a Debt-Peon by Justin Smith
"I don’t know if it will burst or not, or whether there will be a massive revolt of debt-peons in the coming years. One thing that has shifted in me over the course of the past few months, though –clearly as a result of the Occupy movement and some of the arguments coming out of it (I wish I could say I’m lucid enough to grasp these arguments on my own, but the truth is that it required a major historical shift for me to get a clue)–, one thing that has shifted is that I regard this whole racket as being a good deal less legitimate than I used to. They’re going to squeeze as much as they can out of me, and I’m going to resist as much as I can."
"... I am finally starting to appreciate the force of the ‘Education Is a Right’ slogan, a slogan that used to seem questionable to me (to the extent that rights-talk in general seemed questionable); it now seems to me that I was simply availing myself of that right in 1994, and the expectation that I should spend the bulk of my life paying for this seems at least disproportionate. Moreover, it has come to seem to me that usurious interest on a loan, while advantageous to the creditor, frees the debtor up of any need to think about the debt in moral terms. They’re doing something sleazy, trying to squeeze out what they can; I’ll go ahead and be wily in response, and try to hold onto what I can."
"... I am finally starting to appreciate the force of the ‘Education Is a Right’ slogan, a slogan that used to seem questionable to me (to the extent that rights-talk in general seemed questionable); it now seems to me that I was simply availing myself of that right in 1994, and the expectation that I should spend the bulk of my life paying for this seems at least disproportionate. Moreover, it has come to seem to me that usurious interest on a loan, while advantageous to the creditor, frees the debtor up of any need to think about the debt in moral terms. They’re doing something sleazy, trying to squeeze out what they can; I’ll go ahead and be wily in response, and try to hold onto what I can."
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