Part II: Final thoughts played to a tune of desperation

Instead of delving into the testimony from each of the witnesses who testified on Panel I and Panel II at the House Judiciary Subcommittee hearing last week, I want to focus on a few points from the written testimony that highlight the severity of this situation. Moreover, an eloquent post by a new connection, Mr. Blair, on my previous piece about this hearing warrants attention in the second part of this discussion. Based upon the significance of his comments vis-a-vis  my own initial and now settled thoughts about this hearing, it precludes me from carrying out the analysis I had planned on doing. In a word, Mr. Blair's comments made me realize the pointlessness of providing the reader with a point by point discussion on the content of each person's testimony.  Nevertheless, here's a quick list of the witnesses who testified (for those of you who wish to read their written testimony, their names serve as hyperlinks to those documents):

Panel I

(a)  The Honorable Danny K. Davis

Panel II

(a) Lauren Asher, President of the Institute for College Access and Success (TICAS.org)

(b) Rafael I. Pardo, Associate Professor of Law Seattle University School of Law

(c) J. Douglas Cuthbertson, Attorney at Miles & Stockbridge, P.C

(d) Brett Weiss, Joseph, Greenwald & Laake, P.A. 

Ms. Asher and Mr. Weiss were the strongest witnesses. Both were poised and able to relay the most disturbing information, along with substantial statistics, to the Subcommittee (the empty chairs on that end, by the way, was disheartening).  One of the most disturbing pieces of evidence came from Mr. Weiss's testimonial document. Prior to reading this document, I had - naively - assumed that one could escape private student loan debt through death. It seems in certain instances that that isn't even a way out! In a portion of his document that discusses the way in which courts have similar "restrictive standards to co-borrowers" (this topic of co-signers also came up, and it clearly overwhelmed Congressman Cohen), Mr.Weiss explained, "We recently heard a particularly poignant experience from a co-borrower looking for solutions:"

"Heather from St. Petersburg, FL (in her own words)

I co-signed for my boyfriend's loans so that he could go to school to become a pilot. When he signed up with the school, they only had 2 banks they wants us to to get loans through (Wachovia or Sallie Mae and only one that was accessible from their web site (Wachovia) were he was supposed to sign up for the loan. So he ended getting a private loan from Wachovia (which is backed by TERI) instead of a federal loan, although I am not sure what the difference is. Unfortunately, he passed away a couple of weeks before his training was complete. Now the loan deferment period is coming to an end and obviously they want their money. I've done outreach to see what my options are and it's not looking very promising  . . . They also sent a letter, addressed to him, stating that the loans don't offer a death discharge [my emphasis] . . . . I understand that I am responsible for paying these loans since I did co-sign for them, it just doesn't make sense for me to pay the entire loan amount when I got nothing from didn't even get to go for a ride!"

 

I realize it's hyperbolic to claim that one cannot escape their loans via death. But why is it not possible for a company like this one to at least re-negotiate the terms of this debt? It's also amazing that a company can be so brazenly cruel and send a letter addressed to the widow's dead husband. 

There are also examples of how they criticize people for having had children. Again, Mr. Weiss's document explains this type of situation. A borrower seeking to reclaim some semblance of a life was accused of being reckless for making a personal decision to have a family. Weiss continues:

"Creditors have presented a wide range of aggressive arguments to discredit borrowers' testimony about hardship. In one recent case, creditors aggressively questioned a woman about why she had children [my emphasis] after she took out student loans if she was not going to be able to afford both children and loans. In this case, the creditor's counsel got the borrower to acknowledge that she had borne all of her children after she took out the loans. He then asked her if her children had been 'planned' to which she responded that she was Catholic. Counsel then dropped the subject until closing argument, at that time referring to her religious choice. Counsel said that 'you have to make the decision to have a family in light of what you can afford."

I won't even get into the story about an aspirant who can't take a vow of poverty until she's paid off her student loan debt! (Rest assured, supporters, I've already been in touch with Ms. Torres - the aspirant - and told her about the Forgive Student Loan Debt Movement).

Why have so many people in this country been put in such a shameful financial situation? Why are so many of them struggling to just make ends meet? Even worse, why does it seem that no one seems to give a damn?

I have some other questions I'd liked answered:

(a) Why did the House wait until after the proverbial train had left the station to hold a student loan bankruptcy hearing?

(b) It is is my understanding too that the Senate is trying to keep Senator Sherrod Brown's debt swap bill from being considered. Why is that?

(c) Why are both of these bills just about putting a cap on the riches the lenders receive, and aren't doing a damned thing to address the existing debt problems from which we're all struggling? 

(d) Finally, I wrote on behalf of one particular student who was clearly misled by her university. 

When she stepped foot on her campus as a freshman with a clean academic record, the Financial Aid Office had her take out the wrong loans. I'm almost certain of it. I wrote to Sec. Arne Duncan, to the Attorney General of her state, to President Obama, etc. I haven't heard one thing. Nothing. I think that her case alone warrants some sort of official investigation into possible wrongdoing at the school she attended. So why hasn't anyone responded? Why are we all being forgotten here? Have we not raised our voices enough? Where's that so-called "change" we can believe in?

The little that has been done on the Hill is too little and perhaps too late for millions of Americans struggling with student loan debt. Some of the Representatives who happened to attend this hearing struck me as . . . to put it bluntly . . . painfully out of touch, and so unaware of what it means to be a struggling professional today that they made me dream of being in a place of power that would allow me to draft legislation that would actually mean something for people who are caught in this student lending crisis . . . It also made me think about the stark division between baby boomers and the generations who have come after them. (Mind you, I'm speaking thematically by the way. I'm aware that there are a large number of people who are described as baby boomers who support our cause).

I will defer to the eloquence of Mr. Blair to make this final point. After I posted the first part of this discussion, Mr. Blair wrote in response: 

"Excellent report, and very encouraging. Thank you!

I believe very much in your statement regarding advanced degrees hurting ex-grad students in the current job market.
 
In America large corporations thru small businesses value people that they can subjugate 

more than they do people who possess critical thinking skills. Companies want someone 

who is programmable, not someone who wants to learn and excel, or improve the organization for which they work. This attitude is contrary to best management practices (see learning organizations - Peter M. Senge).

We (recent graduate students - irrespective of age [my emphasis]) paid to gain those skills which are abrasive to incumbent baby-boomers who want nothing more than to retire fat and happy, just like they were planning to retire before they lost all their money in risky investments. But now they must "work" longer to retire at the same level they had planned. Now the baby-boomers are in fierce competition with themselves, and others outside of their demographic, to 1. keep their jobs, 2. do as little work as possible, 3. make as much money as possible before they retire.
 
So, our generation(s) must now bear the weight of having to compete with a glut of older workers who are in many ways obsolete in their productivity by default of an unwillingness to learn from younger people who they may consider to be a threat to their positions of authority (and perceived  superiority). We must also pay back our over speculated student debt.
 
We recent graduates of more advanced degrees who are younger seek innovation and efficiency out of a real economic necessity; to pay back our student loans in a timely equitable manner. We also seek the leverage to take our own risks with our own ventures, just like the baby-boomers have. Right now with a disproportionate burden of debt we cannot pay off more quickly we do not have the freedom to organize and innovate, particularly for start-up type ventures. This hurts America. We need the leverage to take risks to innovate. Right now we can only follow orders; orders which are leading us in a direction of dilution, without a clear vision for the future. Let them put our money back into our mouths where it belongs. We've over-speculated on the value of our student loans because of promises of a chance of higher wages which are less likely to obtain."

While I am inclined to believe that what we're seeing is a type of internecine warfare between those in the middle-class, Mr. Blair's remarks about a generational struggle have persuaded me to rethink my original beliefs (i.e., that the crisis resembles an internal type of class struggle). Regardless of theoretical speculation and which one makes more sense, we're all finding ourselves in a desperate collective situation. When you begin to receive emails from college grads telling you, "Thanks for your help! I have a college degree and just went on food stamps today!" you know this problem is serious and that it's not going away. 

Try as they might to ignore us and this serious issue, the student lending crisis is here to stay. Allowing for private loans to be discharged in bankruptcy is, as Mr. Applebaum put bluntly, "like putting a band aid on a gunshot wound." 

Part I: House Judiciary Subcommittee Hearing on discharging private loan debt through bankruptcy

Rubbing elbows/Wearing a new hat: Why we must take this to the Hill and how I've become the FSLDM fundraiser!


The House Judiciary Subcommittee held a hearing a few days ago about the possibility of introducing legislation that would allow borrowers to discharge private loan debt in bankruptcy. As many of you were already aware, your fierce advocate was in attendance. Being there as the Promotional Writer and Director of Marketing was critical for FSLDM. It's just one of the many reasons why I'm urging everyone to donate money to help the cause. In order to get this movement off the internet and onto the Hill, we need more  resources that will allow me to be present for hearings like this one. (And just to respond to any potential critics, I have been paying out of pocket to be a part of these events, and I'm struggling to make ends meet as a result of my student loan debt, too. In addition, I am seeking other forms of funding, i.e., corporate sponsorship and grants).

In any event, it was a successful day for raising awareness about our cause. The first panel had one witness, Congressman Danny K. Davis (D-7th District of Illinois). After he testified, I caught him leaving the room. He was with Dr. Jill Hunter-Williams. Dr. Hunter-Williams is a Legislative Director and the main contact in his office for issues relating to Higher Education and the student loan crisis. (I'll provide analysis and a description of Davis's testimony in the second part of this discussion). Congressman Davis was polite, but we did not talk long. Nevertheless, it was long enough for me to let him know who I was representing ("a group of over 229,000 supporters," I said proudly).

There were several other connections I made. Most notably - because of political ties - was my talk with Lauren Asher, the President of The Institute for College Access and Success (aka TICAS.org). Ms. Asher testified as a witness on the second panel, and tried to persuade the Subcommittee to understand how there are many people struggling to pay their private student loans. I've sent letters to Ms. Asher on behalf of a few students, who I believe were grossly misled by their Financial Aid Offices. While she and I discussed those specific situations briefly, we spent more time discussing the larger problems related to the student lending crisis.

TICAS.org is a critical group with which to be in contact for three reasons:

(a) First, the founder of TICAS is Robert Shireman, who is now the Deputy Undersecretary of Education. In this role he is the senior adviser to Sec. Arne Duncan. That means TICAS has a direct line into the Obama Administration. (This reason alone was why I needed to attend in order to introduce myself to Ms. Asher. She knew I was coming as result of my success in reaching out to her colleague a few weeks ago).

(b) "The Project on Student Loan Debt" is one area of focus for their organization. They are therefore sympathetic to our cause and its supporters.

(c) Also, Ms. Asher if frequently cited in articles about student loan debt (here, here, and here , and those are just a few examples out of many more where she's quoted as a reliable media source). Unlike the College Board, they were not previously lenders and do not have any earlier or current ties to Sallie Mae.

FSLDM has a different take on how the student lending crisis ought to be solved, and Ms. Asher and I spoke frankly about that fact. However, our motivations are based upon a shared objective: TICAS and FSLDM both have an sincere interest in the well-being of students and graduates.(Incidentally, Ms. Asher is gracious and warm, as are her colleagues who attended the hearing with her. Indeed, all of them were enormously polite, friendly, and professional).

In addition to speaking with Ms. Asher, I also introduced myself  - and our group - to two people who work in the Division of Affordable Higher Education at U.S. PIRG. PIRG is another good ally, and I look forward to building stronger relationships with this organization. But . . . and at the risk of sounding like a harp  (!!), we desperately need donations for me to continue fostering these relationships and finding new points of contact. 

There were also several student organizations in attendance, and I was able to meet Ms. Tiffany Munsell, the National Chair for the National Black Law Students Association, and Angela Peoples, who is the Legislative Director for United States Student Association. Our concerns intersect, and we were able to discuss possible ways of building an interconnected coalition of sorts.

While these individuals and their organizations may have different aims, we all agree that:

(1) There is a student lending crisis, and it can't be ignored
(2) Something needs to be done ASAP to help student borrowers drowning in student loan debt

All of these interactions were productive, and made me realize yet again that we are not the only ones concerned about the well-being of students and graduates. While our Facebook Page, "Cancel Student Loan Debt to Stimulate the Economy, this blog, and Robert's website all demonstrate how many people are struggling with student loan debt, face-to-face interaction with like-minded individuals goes a long way. It inspires me to continue fighting, and reminds me that this problem is not contained within the technological boundaries of the internet. We were able to share similar stories, those troubling tales of countless people who can't find jobs, have resorted to taking the degrees they've obtained off their resume just to find a low-wage job, and so forth. Nixing advanced degrees is an emotionally difficult thing to do. After all, if you have a J.D., or a Master's, etc., you worked very hard to earn that degree. The last thing you wish to do is scratch it off your CV. But many are realizing that these degrees are hurting them in this current job market. That in and of itself demonstrates what a disastrous situation we are in.

What's even more emotionally hard? Declaring bankruptcy. The subcommittee members who treated such a decision as being easy and easily done are clearly unaware of just how difficult it is to do such a thing. (For most people there is a lot of anguish that goes along with making that type of decision). There also was an indication that a few of them perceive students through a rather distorted lens. Those who were against measures that would make private student loan debt dischargeable in bankruptcy have a problematic understanding of American college students. First, they seem to assume that they are all a bunch of young whipper-snappers. While the majority of students attending higher education institutions may be between the ages of 18-22, it's a well known fact that the non-traditional student population is growing by leaps and bounds. If I were to speak directly with some of the members on the House Judiciary Subcommittee, I would suggest - funnily! funnily! - that they stop believing Animal House is somehow representative of the way college students live (i.e., just to party and raise hell). The image of an irresponsible beer-swilling student is in many ways flat wrong. Of course it would be absurd to argue that students do not have parties, drink, etc. (some do these things far too regularly than others). But it's also important to be reminded of the fact that many college students are responsible, have at least 1 job if not 2 (so they can cover basic needs), and study hard.


Finally, a few people have been writing me messages via Facebook, urging me to change the way I have been speaking about bankruptcy vis-a-vis this present discussion. One person encouraged me to describe it as a "fresh start." I refuse to use that type of language. In fact, that is the worst rhetoric I could use. Why? Because those politicians who would be wary of such legislation, i.e., that would enable students to include private student loans in bankruptcy, would see that type of assertion as a way to justify their opposing stance.

Next up . . . more specifics on who testified, what they said, and why bankruptcy is a bad option and does not equal a fresh start.

Stay tuned.

Spread the News! House Judiciary Subcommittee is holding a hearing on Wednesday, September 23

It is called, an Undue Hardship? Discharging Educational Debt in Bankruptcy. Spread the news!

Will we become lost generations who all belong to this dreadful indentured educated class?

Dread. That's the best way to describe my feelings this evening about the student loan crisis. I am at a loss to understand why the major news networks in this country have not made a point to discuss this problem. Where are you Rachel Maddow? We need you! What about you, Ms. Winfrey? Hey, Michael Moore, I know you've been contacted, too! Don't y'all want to pick up this story? Is it not exciting enough?

There are not just hundreds of thousands of us - that's just what's showing up on Facebook. Rather we comprise millions of educated people who are drowning in this student lending nightmare sewer, which was created by those who claim to care about educating Americans. Ha! What a painful laugh that was!

Moreover, many of us are ashamed to admit we owe such ungodly amounts of money for obtaining degrees. So, we hide, feel that despair alone, and suffer quietly - these are psychic issues, but the ramifications are enormous in a pragmatic way, especially when it comes to job performance and the mental health of this country. That's why I encourage all of you to reach out to everyone you know. So many of you have shared your stories with me, and I urge you to tell your friends, your colleagues, your family about your struggles.

What about the Obama Administration? Will they continue to ignore us too? We are large, but yet it seems we are invisible. This evening that makes me feel quite small and powerless.

To whom do we turn? Will anyone listen to our pleas for help? More importantly, will anyone in power actually do something about this disaster?

We are honest, hard-working people who were told that getting an education meant something, that it would lead to a better life for us and for our children. I am like many of you, I will be unable to have a child because of my debt. (Funny thing is, if Obama hadn't written his memoir, he and his wife would still be paying their student loan debts).

I want desperately to have children, own a dog of mine again, and own a home. For now, and it seems forever, those things are out of reach for me.

That dream of achieving high things after college has been robbed from us, and I fear that we are all lost as a result . . . so, millions of us will cross the bridge of sighs to life-long imprisonment. Wow. I had no idea that in obtaining advanced degrees, this "noble" path would lead me to a small prison cell of nothingness.

Why Corporate Sponsorship Makes Sense, and my letter to Michael Besancon

We're switching gears on this lovely Sunday in Washington, D.C. Today I'm on a mission to convince corporations to sponsor our cause. If we were to win some sponsorship, we could turn this movement into a legitimate force in D.C. and across the country. I envision people working for the FSLDM in various parts of the country and in a main office in D.C. Yes! You heard me right. I said working, and *gasp* earning a paycheck!

Here's my first attempt at reaching out to a potential corporate sponsor. I wrote to Michael Besancon, Senior Global Vice President of Purchasing, Distribution and Marketing, of Whole Foods. Lucky for him, right? (Wink, wink).

You may be wondering why I chose to write to Whole Foods. My first pick was Whole Foods, because I love their products and would like to shop there more than I can now. I know I'm not alone in that feeling, and many younger, educated professionals - like me - would like to support Whole Foods more than they can now. Moreover, when you realize that you're part of the indentured educated class, and not by your choosing, you quickly feel ashamed when entering a store like Whole Foods. You might think: "I really shouldn't be here. I can't afford to buy anything here, because of the education I just obtained from that fabulous school I attended." Perhaps you walk out empty-handed. Let's assume that there are millions of us who are now part of this new, indentured educated class. While we would love to shop at Whole Foods, we cannot. Perhaps those numbers would inspire them to be support our cause.

I may not get any response from Mr. Michael Besancon. But, heck, it's worth trying for all the individuals who are committed to this movement. (Many of you are aware that I also have a questionnaire set up on Facebook - it's an event called, "Please help us collect data for retailer support!"  I hope you fill  it out).

Letter:

Dear Mr. Besancon:

My name is Ms. C. Cryn Johannsen, and I am the promotional writer and marketer for Robert Applebaum's Forgive Student Loan Debt Movement.

Are you familiar with this movement and Mr. Applebaum's proposal? If not, please allow me to provide you with a brief history.
Like many American consumers, Mr. Applebaum was frustrated by the way the bailout on Wall Street was handled in January. Out of this frustration, Mr. Applebaum created a Facebook group called "Cancel Student Loan Debt to Stimulate the Economy." He assumed that only a few people would join. As of today, September 13th, we have 228,713 members!

I am writing to see if you would be interested in sponsoring our group's efforts. We fall within that highly desired demographic - we're in our 20s and 30s, educated, and hip. We like to consume your products and support Whole Foods Market. However, millions of us in this coveted demographic are unable to do so because we are saddled with student loan debt. Members of our group send half of their paychecks or more to their lenders each month. This economic burden does not allow them to buy consumer goods at Whole Foods.

I've been collecting data from our members and asked them to tell me how much money they would spend at your store every week if they weren't saddled with student loan debt. When people took out this debt, they took it out to better themselves. We have all our lives been told that education is priceless. When many students take out loans they are only 18. The language and complexity of these loans is even difficult for experts on student lending to comprehend, let alone an 18-year-old. In many instances, the loans students take out are not transparent, and they don't realize this until they've graduated. What does this mean to you? The student lending industry has cornered a lucrative market and you're losing money as a result. That's why I urge you to consider sponsoring us, so that we can push Congress to change the way the student lending industry is regulated. 

More than anything, we are trying to create a lobbying group that will watch out for students and a consumer demographic of people who are struggling to buy products created by your company for our age group. If we were to be an actual presence in D.C., we could push for real change that would boost the economy immediately, and you would see more consumers in their 20s and 30s back in your stores.

You can read Mr. Applebaum's proposal here: http://www.forgivestudentloandebt.com/

Thank you for your time and consideration.

I look forward to hearing from you soon.

Respectfully,

Ms. C. Cryn Johannsen

Promotional Writer and Marketer, Robert Applebaum's Forgive Student Loan Debt Movement
Washington, D.C./Mid-Atlantic Charter Leader

Stay tuned . . .

Opportunity Knocks

Until what? Until what?

Until I was handed the mic to talk to Secretary Duncan. But before I give away all the tidbits related to that, this opportunity almost slipped past me.

As I mentioned, I shot my hand up as soon as Sec. Duncan began to take questions. Even though I was sitting in the front row, I was seated off to the side and the volunteers who were helping hand out mics kept missing me. After each question, I anxiously raised mine again and tried to get the attention of one of the mic holders. No such luck! Sec. Duncan took four questions, and then he said, "I can only take one more." By that time a lovely, curly-haired woman in a sharp, gray suit stood behind me with a mic. She whispered, "we'll get to you next."

Yes! Yes! I thought. Don't blow this, Cryn! You have a lot of people to represent. Be calm. Be calm . . . You're gonna do well.

I looked at all the notes I'd been writing furiously. I flipped through Rob's proposal again, a document that I had now gone over for the thousandth time this week. I was prepared to start with an introduction that included six statistics:

(1) This academic year (2009-2010), there will approximately 6.9 million students borrowing for school

(2) There were nearly $131 billion in outstanding private loans in 2008. In addition, there is $544 billion in outstanding federal loans for fiscal year 2009, up from $502 billion in 2008, and that's according to the Department of Education

(3) The average debts of students graduating with loans rose from $18,796 in 2006 to $20,098 in 2007, according to the Project on Student Debt (so you, dear reader, are aware, the Project on Student Debt is staffed by employees of TICAS.org. TICAS was founded by Robert Shireman who is now the  Deputy Undersecretary of Education). Since student lending is inflationary (i.e., whether the overall economy is inflationary or deflationary student borrowing continues to go up), the average debt now is estimated at $23,000! (According to some education policy experts this amount of debt is reasonable. They also argue that borrowing for college is sensible. I bet my readers and thousands and thousands of people who belong to the FSLDM would beg to differ with those number crunchers. But I digress . . .)

(4) 2/3 of students borrow money for their college education

(5) Loans this past year (2008-09 academic year) grew around 25% to $75.1 billion*

(6) Our membership is now well over 228,000 individuals!

The curly-haired, sharply dressed woman whispered, "You're up next . . ." But just as she said that, Mr. Duncan said, "no more questions after this one."

Across the hall, a young woman stood up and began to speak about the abysmal pay that K-12 teachers earn. She was well-spoken and made a point to say that she has a sister who's a teacher and living at home.

Yes! I thought. If I was able to speak, I would say something about how it's not only teachers who are living at home, but all sorts of professionals. It's related to a larger issue: student loan debt! 

I sighed and told the curly-haired volunteer, "Oh, I'm so disappointed."

She replied sympathetically, "he is on such a tight schedule. He can only take so many questions."

"I know. I know . . ." I shook my head in disappointment and closed up my notebooks. "Maybe next time," I muttered.

But then something - in my mind - miraculous happened. Sec. Duncan agreed to take one more question. The volunteer tapped my shoulder and said, "You'll need to stand up to speak to him."

The cameramen, who are just a few feet away from me, swirled the camera around to tape me. I took the mic, tried to contain my nervousness and excitement. (Is anyone noticing that I'm shaking? I worried).

But now was the time for me to speak on behalf of hundreds of thousands of people (perhaps millions). I stood up, a light shined brightly upon me, and I began to speak:

"Secretary Duncan . . . first off, I want to say that I was one of the many who voted for change. . . . I could throw statistics at you, but we both know those statistics. Let me introduce myself," I said. The large crowd seemed frozen and painfully silent.

"My name is Cryn Johannsen, and I am the promotional writer for Robert Applebaum's Forgive Student Loan Debt Movement. We're asking for a bail . . . not a bailout, we're asking for help with this student lending crisis. There are too many student burdened with debt. Our group has well over 228,000 supporters. Robert and I receive terrible stories from people who are in really bad financial situations as a result of their loan debt. You're familiar with these stories, too. I've also reached out to the Reverend Jesse Jackson. I know that this issue concerns him, too. Mr. Applebaum's proposal makes a lot of sense, and is in line with Main Street ideas. It is my hope that you will be willing to sit down with us to discuss this proposal
further . . ."

There are two things that I found encouraging about Duncan's response and the way he responded when I stated who I was there to represent:

(a) When I mentioned the FSLDM's name, he seemed to be familiar with it. (Guess what that means? Many of you must be writing letters to him like I am!).

(b) His response was genuine and sympathetic. He recognized that it's a problem. However, I am not entirely convinced that the solutions he mentioned, i.e.,  the new IBR program , the change in Pell Grants, and the possibility of having one's loans forgiven (after - *gasp* - 10 years) if they go into a line of work that is of service to the nation.

What matters is that I was at a large gathering in D.C. and went on behalf of all of you. I was able to speak directly to Sec. Duncan. Afterward, many people came up to me and thanked me for what I said. One older woman from the "B" School told me, "I wish your group had been around when I got my MBA!"

The positive reaction from fellow University of Chicago alumni was just as uplifting as my chance to speak to Sec. Arne Duncan. After all, Chicago has a reputation for being conservative. (I won't bore you with the long list of the neocons from Chicago who informed Bush's decision to invade Iraq and so forth). Plus, many of the people with whom I spoke were older, and yet they understood the significance of our movement. One person told me, after I mentioned that many educated individuals are fleeing the country for better paying jobs, "that's called a brain drain."

So what do I now ask of all of you?

Please write to Secretary Arne Duncan. (His address is: U.S. Department of Education, 400 Maryland Avenue, SW, Washington, D.C. 20202)

Let him know that you heard I spoke to him, and you are writing to urge him to listen to Robert's proposal. Tell him that he has the power now to change things for hundreds of thousands, probably millions, of educated, middle-class people who are currently stuck in a financial debt hell. Share your personal stories about the things you dream to have - a home, a car, a child - but cannot as a result of the crushing debt you accrued as a result of going to college. You never cease to move me with your personal stories of struggle. (Most days I cry after reading about your travails, and that emotion moves me to work even harder, to write even more letters, and to debate for a good cause).


* Note to a unprofessional critic of mine: loan volume, average borrowing, cumulative debt may be different calculations. However they should all reconcile in some fashion when taking into account enrollment changes, prices, years, and what kinds of loans are included and which not. The Education Department seems to include more types of loans than, for instance, the College Board.


But these particularities don't matter. I've made my arguments clear and I am far from being "untruthful." Furthermore, I would never have a so-called friend attack someone and call them a "cult leader" and an "egotist." Fact remains: I'm on the right side of this mission. None of this "stuff," however, matters. After all, I am ill-informed and just contribute to "blog chatter." 

Setting the scene, and an emissary's errand - attending the University of Chicago's education reform panel

I attended the University of Chicago's forum on education reform on behalf of FSLDM supporters and as an alumna of the school (A.M. '02) last night at the Andrew W. Mellon Auditorium at 1301 Constitution Ave NW in Washington, D.C.  This event, hosted by President Robert Zimmer, was called "Chicago Contributes." A panel of education policy experts, moderated by the well-known broadcast journalist Ray Suarez (who, like me, holds an A.M. in the social sciences from Chicago) , discussed issues relating to urban education and improving things at the k-12 levels. Incidentally, earlier in the afternoon the forum also included a panel that covered health care reform, and the honorary speaker for that talk was Secretary of Health and Human Services Kathleen Sebelius (she hails from my home state - Kansas. Hoorah!).

As most of you already know, the honorary speaker for the panel on education reform was none other than Secretary of Education Arne Duncan. We need to get his attention, and that was my intent as your emissary. My mission: to introduce myself and to promote our movement! Although the focus was primarily on pre-k and k-12 education reform, Secretary Duncan and the panelists made some passing references to university education. The most notable remark was when Secretary Duncan stated, "President Obama has a goal that by 2020 we have a higher percentage of college graduates than we do now." (Obama is calling on all Americans to attend at least 1 year of college, and that's why they are focused on initiatives to help community colleges retain students, as Duncan mentioned last night). 

Later in the evening, Obama's Senior Advisor David Axelrod gave a talk about policy endeavors for the future, and mentioned the successes he sees they've had thus far as a new administration. During his talk over cocktails and hors d'oeuvres, Mr. Axelrod made it clear that these two issues - education reform and health care reform - are top priorities for the Obama administration. Keep this comment in mind folks - their attention to education reform and - I hope - their willingness to listen to our appeal makes it all the more critical for us to begin mobilizing this extraordinary grassroots movement. Therefore Rob and I say: let's turn the FSLDM into an actual lobbying group for the welfare of higher education students! There is no doubt, we have a narrow window of time to succeed, so we must act fast to demand change. 

But before I jump to the details about the end of the evening and to the end point of this fledgling, yet increasingly robust grassroots movement (after all, we're just gettin' started, and we're just gettin' y'all fired up!), I must begin with the first steps of my somewhat comical journey to this event.

Getting to the actual event was a comedy of sorts. Although at the time, I was not finding myself, apparently, as lead clown all that funny. The universe was playing many tricks on me yesterday, and somebody, somewhere, was laughing up a storm. (If I had been on stilts, it would have been even funnier). First, I  struggled to find a parking spot that was (a) actually affordable, (b) not in a tow zone,  and (c) reserved for tourist buses only. I also realized upon my trip to downtown D.C. that my wallet was not in my business bag. Said wallet contained money that would have allowed me to park in obscenely overpriced parking garages near the National Mall. I drove in circles trying to find that perfect space that was (a) free and (b) not located in a tow zone. No such luck. Filled with disappointment and embarrassment, I pulled into yet another unaffordable parking garage. I called my husband and within a few short minutes of brainstorming we solved the problem. Wallet was received from a friend who was commuting from where we live in NOVA to D.C. That friend saved the day!

At the conclusion of the one act play called, The Drama of Cryn's Missing Wallet, I jogged in heels down 13th and Pennsylvania Ave to Constitution Ave (I have Nordstrom to thank for teaching me how to run in heels), and arrived at my destination. With just 2 minutes to spare, I registered and received my name tag. But none of this could have happened without Robert Applebaum's support. In fact, I told Rob about this event a week ago, and considered paying to attend out of my own pocket. Before I made that decision Robert solved the problem.

After I'd sent him an email about my longing to go, he quickly wrote back, "done."

With the small amount of funds he's received, Robert graciously offered to send me to attend this $75 event. That is further evidence of his commitment to this cause and to our professional and personal relationship. *Please make sure to thank Rob for sending me to this event to be a representative of all supporters of the FSLDM.*

Although I wanted to bring up the frustrating fact that recently Sallie Mae and Nelnet won 5-year contracting bids to service all federally guaranteed loans, I realized that wouldn't be doing us any favors . . . I had a strategy, but I had to wait.

President Zimmer introduced all the panelists, Ray Suarez, and finally Secretary Duncan. The large crowd stood up and clapped for several minutes upon his entrance into the grand hall. I sat at the very front of the crowd, just a few feet from the panelists and Mr. Duncan.

Mr. Duncan gave a good speech. Then it was time for question and answer. I raised my hand as soon as they opened the floor for questions, and I almost lost my chance to speak to him directly. That's until . . .

A humble request and the beauty of F's flowers

We are asking supporters to donate $5 for the cause. I realize that so many of you are struggling with paying the bills, putting food on the table, attending to the needs of your children, etc. However, I urge you to donate, so that we can really begin to mobilize this movement and make our collective voices heard in D.C.

If you do donate, please email me and let me know.

We are grateful for your support, for your stories - you move me in ways that are at this moment inexplicable. Your honesty reminds me of how much integrity and grace people possess. When you reach out to me and share your personal stories of pain and loss, fear and hope, I am reminded of why I love being this sort of being and why I have a fierce, everlasting love for humankind.

Thank you for being a part of this historic grassroots movement. In so doing, it has allowed me to become a servant to good, decent, hard-working people - for that I am most grateful; I believe I can neither repay you nor Rob. 

Being a humble servant and belonging to this populist cause has provided me with strength I'd never known before . . . thank you. Thank you. Thank you. 

Let's turn this fledgling flower into a healthy, vibrant, and noticeable rosebush!

My interview on BNN

I was interviewed on BNN today! This type of exposure is great for the movement.

Request to follow us on Twitter

Hi, friends and fellow FSLDM supporters,

I want to encourage all of you to follow Robert and me on Twitter:

Cryn - @cjohanns
Robert - @bobbyapples

This way, you can follow the links and stories we post on things related to our favorite subject - the student lending crisis!

Sign up - OpenCongress.org

This site is amazing. If you haven't signed up for it, I encourage you to do so ASAP. (Once you do, make sure to add me as a friend!)

Fast Notes, Fast Finds - House of Bills

Check out this new site, House of Bills!

It allows you the option of writing to everyone at once voting or working on a particular bill in the House of Representatives. I'm finding bills related to the student loan crisis, and plan on reaching out to those individuals. I encourage you to do the same. (Make sure to watch their short video on how their site works).

United Professionals does it again: They posted about Robert Applebaum's incredible grassroots movement!

United Professionals also posted about Robert Applebaum - many, many thanks again to this great group of people!

Thanks, United Professionals!

Several people who work for United Professionals reached out to me recently and expressed their support for my blog and Robert Applebaum's Forgive Student Loan Debt Movement. This outstanding non-profit organization, founded by Barbara Ehrenreich, is an advocacy group for white collar professionals. (If you're interested in my previous post about them, go here).

They just promoted me on their site, so I wanted to express my humble thanks to them here. If you haven't investigated United Professionals yet, I encourage you to do so.

(A special thanks to Karen Southall Watts and Diane Alexander!)

To the Economist who continues to jabber: "Borrowing for college is sensible"

To the economist who works for the College Board, the one who did such odd number crunching with her colleague, Patricia Steele that people in the education industry are all scratching their heads about the discrepancies in their findings because of this WSJ article, I have something to say to you. 

You continue to claim: "Borrowing for college is sensible."


At this juncture, that is flat wrong. Borrowing for college has been a death sentence for many people. I'm the one reading their stories. Recently, TICAS.org also asked people to share their student debt stories - they put out that request just a week ago. So far, they have received over 600 messages! Borrowing for college is about as sensible as putting a loaded gun to your head while drunk and feeling really angry about the outstanding loans you have for your education.


Moreover, Lauren Asher, the President of TICAS, has concerns about the the cost of community colleges. Many people think that attending community college is a "sensible" first step towards a degree.

Well, recently, Asher stated here, "people think of community college as affordable," however "[students] are having a harder time covering their living costs without borrowing."


On top of the rise in tuition, and Sandy Baum (said economist) refuses to ever acknowledge these real facts of life, living costs have gone up dramatically, etc. Moreover, middle class salaries have remained stagnant for well over 20 years. You know what makes that ridiculous? There are so many things that make that fact absurd, but here's just one: It used to be that one person was the wage earner (the traditional family -that was true for the most part), but now a household typically has two people earning money! And yet middle class salaries remain stagnant.


Many light years ago, I had been pursuing my Ph.D. and had planned on becoming a professor of Modern European cultural and intellectual history. It goes without saying, I believe in the value of higher education, but if things do not change in terms of the student lending crisis, and a person cannot afford to go to college, I would strongly advise them against going.

We - as a society who believes in credentials -  must change this corrupted system and help those who need it the most - students.

Why I'm not excited about the new IBR Program

The Income Based Repayment program does not impress me. Recently, Sandra Baum from the College Board was asked to inform people of how financial aid has changed. I take issue with the fact that Baum says again that "borrowing for college is sensible." We'll get to that in a moment. First, let's discuss why IBR is unimpressive.

Realistic Scenario - John and Jane, a married couple with student loan debt. (See them above, sipping wine and adoring one another).



If a married couple both have debt, the spouse's income counts in determining the person's monthly payment, but the spouse's debt doesn't count.


So, John and Jane both have 100k in student loan debt. 


John makes 45k a year. Jane makes 35k a year. Yikes! (They really are being reckless in their spending - I mean, they're drinking red wine and their clothes look awfully smart. Those irresponsible borrowers!)


In any event . . .


In determining John's payment, his household income is calculated at 70k a year, but his student loan debt is only calculated at 100k, and the same goes for Jane. Therefore for each of them, their household is calculated at 70k in income, but their total debt burden is only seen as 100k. When it fact it's 200k. (Remember: John owes 100k and Jane owes 100k).    



Hmmm . . . should John and Jane, even though they're madly in love, divorce?


Here's an IBR calculator - have fun with that!

I filled it out. Here's what I was informed:

"Unfortunately, current IBR rules use your and your spouse’s combined income to determine what monthly payment you can afford, but do not consider the burden of your combined student debt. This results in higher payments for both borrowers, a type of double-counting that is unfair and inappropriate for your situation.
The US Department of Education has agreed to revisit this rule and factor in both spouses' debts when calculating one applicant's IBR payments, but that change would not go into effect until as late as July 2010. In the meantime, the current rules will apply. Please sign up for our mailing list so we can keep you updated on these and other changes. More information is available here."

Hmmm . . . I'm glad I got married, but this news is not good.

Let's talk (again) about Baum's claim that "borrowing from college is sensible." To be cont . . .

I know you're ALL shocked by this . . .

 

"Oh, gee, honey . . . What a surprise!"

The Wall Street Journal put out an article that states, "Students are borrowing dramatically more to pay for college, accelerating a trend that has wide-ranging implications for a generation of young people."

Ahem. Shocking to all of us, right?

Here are my questions:

a) why is deputy undersecretary of the Education Department, Robert Shiremen so surprised?
and . . .
b) what is the Department of Education doing to protect students from predatory lenders and this serious lending problem?

WRITE TO MICHAEL MOORE - ASK HIM TO COVER THIS STORY AND HELP ALL OF US OUT!

I just wrote a pitch to Michael Moore. It is safe to assume that many of you will agree with my decision to reach out to him - I think this story and your stories will interest him. But in order to really get his attention, I'm asking that each and every one of you write him a quick email (mike@michaelmoore.com). Let him know why this crisis ought to be discussed and covered in a documentary. Aaaaah, come on, I'm only askin' for another two minutes of your time. Plus, it's for our cause and it's patriotic!

Thanks again, everyone!

My email to Michael Moore (written Sept. 2, 2009 at 11:34 AM EST):

My name is Ms. C. Cryn Johannsen, and I am the promotional writer and marketer for Robert Applebaum's Forgive Student Loan Debt Movement.

If you are not familiar with this movement, I'll provide you a quick history.

Like many Americans, Robert, a NYC attorney, was frustrated by the bailout of the banks and all of Wall St. (the exact people who got us into trouble) in January. He decided to create a Facebook group and called it "Cancel Student Loan Debt to Stimulate the Economy." Robert had no idea that this group would end up becoming such a Facebook hit! As of September 2, 2009 at 10:36 PM (EST), we have a membership of 227, 547 individuals.

I think this story is something that might pique your interest.

It is clear that the student lending industry (mind you, the Department of Education and Universities are also culpable), are bilking students for all their worth. The scandals are so numerous, that one former Dept. of Ed. employee (who, mind you, had been nominated to work for them by Bush and is writing a book about this debacle) said, "Oh, there are too many scandals to count."

This man, Dr. Mark Schneider, is burned and seems hopeless about the situation. Even though we have significant political differences, one thing is clear: we both care about students and agree that the student lending industry is in shambles.

I would like to share more with you about my disturbing findings this crisis - very few Americans know that they are victims of a scandalous lending system. For the meantime, you can visit the following sites - if you're interested - to learn more about our movement. (I have a full-time job and am doing this work as a volunteer. It is a cause in which I believe, and I hope that you might be willing to speak to us about it).

Related Sites:

Robert Applebaum's site: http://www.forgivestudentloandebt.com/

My blog, Education Matters:http://alleducationmatters.blogspot.com/

Finally, are you aware that the student lending industry possesses the second strongest lobbying groups in D.C.?

I hope you reach out to us - we need to promote this critical problem.

As I say, America has created a new class - the indentured educated class. I believe that the middle class is an endangered species. (We can't even begin to discuss what this industry is doing to the lower-classes). I have reliable sources and hope that you'll talk to me about it.

Sincerely,

Ms. C. Cryn Johannsen

Call to Action - We want YOU! Please go and post to support Dr. Oberg

A few posters who responded to the lawsuit filed by Dr. Jon Oberg are saying he's done it for his own selfish interests and referring to him derisively as a "whistleblower." He was in fact a researcher who discovered some serious loopholes that allowed lenders like Nelnet and Sallie Mae to rob the treasury of billions of dollars - OUR tax dollars!

Please, please go and post here to support Dr. Oberg. He was, and is, a courageous man - he's on our side and has always been an advocate for students.

Thanks for your help! It will only take a few minutes to set up an account and share your support!

BREAKING NEWS! Our Dept. of Ed. Gman Hero is doing something heroic for all of us!

As many of you recall, I wrote about a modern day hero, Dr. Jon Oberg, the dutiful (G-man!) researcher at the Department of Education here and here . Dr. Oberg's work - the right type of work - led him to discover that lenders were receiving millions and millions of dollars from the treasury - they slithered past all sorts of loopholes to line their pockets with money. He tried to put a stop to it, went to his superiors, and informed them of his findings. Guess what they did to him? They told him to shut up, to move on, to attend to work related to the position he held (whatever that means) at the DOE.

Well, Dr. Oberg is back, and it's good news for our movement! He has filed a lawsuit, "seeking the return of $1-billion in excess student-subsidies to the federal government."

For those who read my blog, I urge you to the following things:

a) Please, please follow me (you must sign up to follow. Scroll down the page and see my list of "followers"). I'm not asking you to do this for my own desire for fame, but to really show that my readership has spiked for the Forgive Student Loan Debt Movement.

b) Once you have signed up to follow me, circulate this news about Dr. Oberg! Tell your friends, your family, your neighbors - tell EVERYONE. This lawsuit could be of enormous help to our cause.

I will also be writing a very disturbing piece about people who are in the enrollment management industry - this story will, in my view, help those critical of Marjorie Dillon (and thousands and thousands of others in a devastating predicament like her - we're talking about 4 generations of people who might be destroyed as a result of some fishy things that may have happened at Robert Morris University) see her from a different light A very different light. Stay tuned for that story . . .

But for now, spread the word!

Thanks again for your support.