Need I say more?
Selasa, 29 Juni 2010
Senator Webb's Letter - The Condensed Version
In my latest piece, "Next Letter Writing Campaign - Aiming For Specific Targets," I referenced the various letter writing campaigns that have taken place over the past few months. I also included links to responses I've received from my own networking and advocating, one of which was a letter I received after writing to Senator Jim Webb (D-VA). Sen. Webb's state houses the insidious Sallie Mae's headquarters. They used to be down the road from me, and it was quite difficult to even drive past their loansharking biz. Oh, on top of that, here's a list of his campaign contributors. Wow. Shocking. Sallie Mae is on that list. You can read Senator Webb's entire response here. Not surprisingly, it was more than just disappointing. One reader provided this short analysis. They did it quite well and crudely: "Summary of Jim Webb's letter: "I want you to think I'm on your side, but you're on your own. Piss off."
Need I say more?
Need I say more?
Next Letter Writing Campaign - Aiming For Specific Targets
The indentured educated class has carried out several successful letter writing campaigns over the past several months. The primary focus has been to send Roberto Rodriguez in the White House letters. (We've also written to the Department of Education. Sadly, they have really failed to do their job and respond). The last letter writing campaign to the White House was via email. I did that for a specific reason: after 9/11 there were those anthrax scares, and many of you may recall that several Senators' offices were targets of these letters filled with the deadly poison. That's when - naturally and understandably - the White House and others in D.C. had detectors put in place for these sorts of things. That means that if you send out handwritten notes by "snail mail," it can take a very long time for them to arrive. So, the fastest way to get things to the right people is to send letters via email. Of course, if you wish to send your own notes by post, I encourage you to do so. But it's good to be aware of the delay and the reasons for it.
Here's a quick breakdown of the dates and links for the previous letter writing campaigns, as well as a few links to letters I sent off as an advocate:
(a) May 24, 2010 - the final announcement for sending off the letters to the White House;
(b) March 4, 2010 - Sen. Webb's response to my letter;
(c) February 5, 2010 - my call with the White House;
(d) February 3, 2010 - update on the first letter writing campaign to the White House.
That's actually the short-list, because I frequently email the Department of Education and have made a point to send countless follow-up emails to the White House.
While we've had some luck, I am enormously dissatisfied with this approach. Therefore I want to shift our attention to Senators and Representatives, and that can entail those at the state level, too. Currently, I am drafting a list of names of specific individuals whom I'd like the indentured educated class to make an appeal. Moreover, many of you have been involved in writing to your representatives on a regular basis, so if you have emails for actual people (i.e., the higher education policy staffer in Sen. X's office), please let us know. It's important to receive your feedback and suggestions, and I urge you to provide us with comments below.
If you're in, please send me a quick email (ccrynjohannsen at gmail dot com). I receive hundreds of emails a day, so please include this in the subject (that way, I can group them in the right file and make sure you're not left out): COUNT ME IN! (June 29, 2010). Please make sure to include the date. Thanks!
I will draft the letter and then request your feedback. This method allows more people to volunteer, and it also provides everyone with the opportunity to give me suggestions.
Stay tuned.
Kamis, 24 Juni 2010
Readers' Responses: Good Point/Wretched Point
Readers' responses are important to me. They mean as much as the testimonials I collect. Moreover, I think it's necessary to post the good along with the wretched. Occasionally, I like to integrate these comments into pieces. Oftentimes it's when someone writes a particularly egregious thing or makes an absolutely fallacious remark. However, I've decided that I will start to post two at a time: the good point, along with the wretched point. That way, we're striking a balance. Plus, it helps me keep my hope in humanity. (Trust me, the Internet really makes you question humanity at times, especially when Anonymous posters throw racial epithets and misogynistic trash in your direction. That's when I censor, because I don't think filth like that has a place here. There's plenty of other places on the Internet for that s---t. That's why there's no point in posting the drivel from the drooling mouth of Tormentor Sioux, who's in woeful need of an education).
We Americans always like to provide a positive point at the end of anything. Whether it's during a job interview or at the bar (unless you're one of them types who end up fightin' at the end of an evening). I like this custom, so let's begin with the wretched comment first.
In my paper, "The Plight of Current Borrowers: An Appeal For Immediate Relief," I wrote about a woman who was attacked in court for having children, the full details of which can be read here. She was grilled by the creditor's counsel about her choice to have children. At one point she explained that she was Catholic, and therefore the children were not planned. In the closing argument counsel returned to her answer, and stated, “you have to make the decision to have a family in light of what you can afford.”
A reader made this comment:
No matter how insensitive it is to question having kids you can't afford, it is completely warranted. "Can't feed 'em, don't breed 'em..." Religion is no excuse.
This reader receives the most wretched comment award for this week. There are two striking things about this remark. First, the person is admitting that they're insensitive. But then they quickly argue that they're point is fair. Then they go on to equate a woman to an animal (i.e., "can't feed 'em, don't breed 'em). The levels of insensitivity are absurd and more than just callous. This individual could also serve to reflect upon the meaning of spirituality to other people. It's fine if you do not subscribe to religion (I refuse to use the term "organized religion," because religions like Christianity are organic in nature, and this term is painfully modern and inappropriate when describing the history of this religion or any other one that date backs centuries and centuries). This attorney had no right to go after her decision to have children. This reader is also being presumptuous in his/her assumption about the woman's finances. Like homeowners who lost their homes or who are currently underwater, many Americans who took out loans for education did so because they've been told that it was worth it. Unlike homeowners, they can't simply walk away from their debt. So now many people who have degrees feel that their education is useless. This woman probably thought the debt she was taking on for a college degree would mean that in the future she'd have a decent paying job. In turn, that would mean that she could have children and not have to worry about her student loan debt. Sadly, that's not the case, and she is just one of millions of people who are in this situation.
Enough with critiquing the wretched remark. I could go on and on about how out of touch this reader is, and how I think it's quite sad that there are so many Americans that have such uncaring opinions toward their fellow citizens. Luckily, there are Americans who do care and who are sympathetic. One such person is "Frank the Underemployed Professional." Frank is a superb blogger over at Fluster Cucked (he writes about the law school scam(s) in the U.S.) He responded to my own piece about myself, "Cryn's Story As A Student Loan Refugee And An Indentured Educated Citizen." (I'd also like to give a shout out to Edububble for mentioning this recent piece). Frank wrote:
"Neither my readers nor I feel entitled to enormous creature comforts (we've all been unjustly accused of that on hundreds and hundreds of walls about student loan debt)."
I have been debating politics and philosophy electronically since the birth of the Internet and I think that people's standards with regards to what is acceptable for our nation, economically, have really decreased. We are slowly starting to accept widespread poverty as a way of life. Years ago it wouldn't have been regarded as being unreasonable for college-educated people to expect to be able to obtain middle class jobs and earn a middle class living without much difficulty. Today being able to earn a middle class income is almost seen as a great prize that people need to desperately struggle for. Today it seems like being working poor is the standard from which people try to rise up. It is "the new normal".
I believe that we are witnessing an epic transformation of our country from that of a first world middle class nation to that of an overpopulated second class nation with widespread poverty. This is being driven by an economic force that few people understand called Global Labor Arbitrage. It is also the reason why so many people feel compelled to flood into the universities, making it easier for schools to jack up the tuition. (Since people perceive that it is difficult to attain a middle class standard of living without a college degree today, people are attending college in droves.)
Poignantly put, Frank the Underemployed. We are witnessing a frightening transformation in U.S. culture. Just the other day someone told me that these changes are simply necessary. But my question is this: are they really? Why do we think these cataclysmic changes in, say, employment are acceptable, especially when the Fat Cats on Wall Street are doing just fine? Even worse, we now have one of the worst oil spill disasters in U.S. history. Who's paying for it? BP? I think not. It's the same as student loan debtors. The lenders are fine. They'll be fine. The more I read about politics and how there really seems that little is being done to fight on behalf of American citizens on so many levels (health care, the environment, jobs, student loan reform), the grimmer I become. Sadly, many of my readers have already given up hope. I'm not there yet, but I ain't far behind.
We Americans always like to provide a positive point at the end of anything. Whether it's during a job interview or at the bar (unless you're one of them types who end up fightin' at the end of an evening). I like this custom, so let's begin with the wretched comment first.
In my paper, "The Plight of Current Borrowers: An Appeal For Immediate Relief," I wrote about a woman who was attacked in court for having children, the full details of which can be read here. She was grilled by the creditor's counsel about her choice to have children. At one point she explained that she was Catholic, and therefore the children were not planned. In the closing argument counsel returned to her answer, and stated, “you have to make the decision to have a family in light of what you can afford.”
A reader made this comment:
No matter how insensitive it is to question having kids you can't afford, it is completely warranted. "Can't feed 'em, don't breed 'em..." Religion is no excuse.
This reader receives the most wretched comment award for this week. There are two striking things about this remark. First, the person is admitting that they're insensitive. But then they quickly argue that they're point is fair. Then they go on to equate a woman to an animal (i.e., "can't feed 'em, don't breed 'em). The levels of insensitivity are absurd and more than just callous. This individual could also serve to reflect upon the meaning of spirituality to other people. It's fine if you do not subscribe to religion (I refuse to use the term "organized religion," because religions like Christianity are organic in nature, and this term is painfully modern and inappropriate when describing the history of this religion or any other one that date backs centuries and centuries). This attorney had no right to go after her decision to have children. This reader is also being presumptuous in his/her assumption about the woman's finances. Like homeowners who lost their homes or who are currently underwater, many Americans who took out loans for education did so because they've been told that it was worth it. Unlike homeowners, they can't simply walk away from their debt. So now many people who have degrees feel that their education is useless. This woman probably thought the debt she was taking on for a college degree would mean that in the future she'd have a decent paying job. In turn, that would mean that she could have children and not have to worry about her student loan debt. Sadly, that's not the case, and she is just one of millions of people who are in this situation.
Enough with critiquing the wretched remark. I could go on and on about how out of touch this reader is, and how I think it's quite sad that there are so many Americans that have such uncaring opinions toward their fellow citizens. Luckily, there are Americans who do care and who are sympathetic. One such person is "Frank the Underemployed Professional." Frank is a superb blogger over at Fluster Cucked (he writes about the law school scam(s) in the U.S.) He responded to my own piece about myself, "Cryn's Story As A Student Loan Refugee And An Indentured Educated Citizen." (I'd also like to give a shout out to Edububble for mentioning this recent piece). Frank wrote:
"Neither my readers nor I feel entitled to enormous creature comforts (we've all been unjustly accused of that on hundreds and hundreds of walls about student loan debt)."
I have been debating politics and philosophy electronically since the birth of the Internet and I think that people's standards with regards to what is acceptable for our nation, economically, have really decreased. We are slowly starting to accept widespread poverty as a way of life. Years ago it wouldn't have been regarded as being unreasonable for college-educated people to expect to be able to obtain middle class jobs and earn a middle class living without much difficulty. Today being able to earn a middle class income is almost seen as a great prize that people need to desperately struggle for. Today it seems like being working poor is the standard from which people try to rise up. It is "the new normal".
I believe that we are witnessing an epic transformation of our country from that of a first world middle class nation to that of an overpopulated second class nation with widespread poverty. This is being driven by an economic force that few people understand called Global Labor Arbitrage. It is also the reason why so many people feel compelled to flood into the universities, making it easier for schools to jack up the tuition. (Since people perceive that it is difficult to attain a middle class standard of living without a college degree today, people are attending college in droves.)
Poignantly put, Frank the Underemployed. We are witnessing a frightening transformation in U.S. culture. Just the other day someone told me that these changes are simply necessary. But my question is this: are they really? Why do we think these cataclysmic changes in, say, employment are acceptable, especially when the Fat Cats on Wall Street are doing just fine? Even worse, we now have one of the worst oil spill disasters in U.S. history. Who's paying for it? BP? I think not. It's the same as student loan debtors. The lenders are fine. They'll be fine. The more I read about politics and how there really seems that little is being done to fight on behalf of American citizens on so many levels (health care, the environment, jobs, student loan reform), the grimmer I become. Sadly, many of my readers have already given up hope. I'm not there yet, but I ain't far behind.
Senin, 21 Juni 2010
Final Installment of "The Plight of Current Borrowers: An Appeal For Immediate Relief"
Advocates must remain focused on their area of interest and the people whom they're trying to help and encourage those individuals to get involved. It is a mistake to meander from specific types of advocacy work. When doing so, you leave a lot of people in the lurch. In addition, it's important to carry through with your work and criticism of a particular problem with sound solutions. The indentured educated class should not be abandoned. In fact, it's critical that individuals in this class become more involved. That's why it's important for advocates to stick to their course and serve as models for these individuals. That said, I'd like to thank several people for their continued support - Cameron, Nick, Gail, Liza, Michele, and Dustin. You are just a few of the many people who are fully committed to helping the cause, and I am grateful to all to you.
Now is not the time to broaden the scope of one's critique. The student lending crisis is complex and inextricably bound to larger U.S. problems (excessive deregulation, the sub-prime mortgage crisis, etc.). While it's perfectly acceptable as a researcher and advocate to incorporate these various themes, it's absolutely necessary - in my view - to remain committed to this cause and to providing solutions for ways in which to end the student lending crisis. There is no doubt this work, I've come to realize, is going to require a lifetime commitment on my end. I know the ins and outs of academia, and I appreciate its depth. Alas, education truly matters to me, and I think everyone ought to have access to it.
Below is the final installment to "The Plight of Current Borrowers," my paper that was delivered at the Rev. Jesse Jackson and the Rainbow PUSH Coalition's recent convention on student loan reform. If you wish to read the paper in its entirety, which includes all the footnotes, you can do so here).
There are a variety of ways by which the Administration, Congress, and the Department of Education could be helping current borrowers now and in the future. Short- and – long-term options are detailed below. Again, the complexity of the student lending industry and its relationship to the Federal Government means that hasty solutions aren’t the answer. In addition, student groups ought to be more involved in helping current borrowers. SAFRA has been passed and the next issue is the Department of Education’s attempt prospectively to limit borrowing at for-profits institutions through rulemaking. But that should not be the only focus. Although I applaud the consumer groups’ effort (POSD, PIRG, USSA, NACAC, etc.), their strategy is not as direct as it could be. They should have said the next big priority is to help current borrowers who have been saddled with debt, drawn attention to the lives currently being ruined, and from that moved on to prospective solutions armed with survey data and case studies showing how bad the debt/default situation is right now. Instead, they have tried to buck the money and influence monster head-on without building a convincing case.[18]
Short-Term Solutions
The Department of Education has the power to set up hotlines immediately to help answer calls from current borrowers. I investigated the type of responses one receives when calling the general line, and also asked my readers to tell me what sorts of responses they received. Overall, the Department of Education was unhelpful and informed me, as well as other callers, to “get in touch with their lenders to find out information about deferment of loans, etc., etc., etc. (if the loans were issued by private lenders).”
But lenders’ customer support lines are invariably staffed with lightly trained people making modest wages who know little more than to read scripts in front of them (not to mention the obvious conflict of interest in seeking advice about your loans from your lender). If the Department of Education were to install hotlines for current borrowers, they could in the very least provide support to individuals who are not aware of the types of loans they have. At this juncture, most borrowers with whom I am in contact (and that numbers in the thousands now) feel that no one cares about their financial situation, and many are unaware to whom they owe their debt (that is why I always make a point to ask borrowers if they have Federal loans, private loans, or both). Moreover, Secretary Duncan has the power to intervene and do something for current borrowers.
Although IBR has been implemented to help current borrowers and it is a good start, it has fallen short in a number of ways: (a) it does not cover private loans; (b) if a married couple files their taxes jointly, and both have student loan debt, both incomes are considered as one, but only one’s person debt load is taken into account, resulting inflated payments that are impractical for these couples with high shared debt loads; most importantly, it does nothing to assist with people in default. The number of people who will default is expected to rise, so it is imperative that a program like IBR or something else will assist them in getting out of this devastating situation. If these shortcomings were to be addressed, this good program could become a major part of helping – most likely – millions of people recover from default and dramatically improve their lives.
Long-term Solutions
Most of the solutions I suggest also come with a number of questions about why the Obama Administration and Department of Education are failing to address the devastating effects of how the student lending industry is structured and operated. Instead of dealing with the crisis directly, the legislation that has recently been passed only addresses a few aspects of the problem. Most worrisome is how millions of current borrowers have been left out of these solutions. While restoring bankruptcy rights to student borrowers is crucial, that is not the best possible approach to helping the indentured educated class. Indeed, restoring consumer protection rights is important. However, declaring bankruptcy is not a simple task, and it also leaves the borrower in a problematic financial situation. Instead, it would be more beneficial if additional legislation were proposed to ease the burden of owing mountains of debt. For instance, Sen. Sherrod Brown drafted a bill called the “Private Debt Swap Proposal.” (This bill proposes that the Federal Government take on private loan debt – i.e., assumes ownership of it – and therefore allow borrowers more flexibility with the terms of repayment). So far, there has been no interest or traction on this bill, and yet it could be a productive way to help current borrowers.
In my opinion, the biggest mistake the White House and the Department of Education are making is tackling the debt crisis on a prospective basis. Individuals in tax trouble are not being told to wait for new legislation so future generations of taxpayers are helped; rather, the IRS is trying to help current taxpayers resolve their debts. Likewise, homeowners facing foreclosure are not told to wait for legislation to help a future generation, but are being provided with assistance now. Why are student loan borrowers, who do not even have the same consumer protections to start with, being treated so differently?
It is more than possible to work out programs to help borrowers get back into repayment and allow them the opportunity to become productive citizens. If borrowers are expected to pay their loans back, which most of them wish to do, why can’t the interest rates be abolished, along with as the huge penalties people must pay in order get out of default? How do those fines and penalties help someone who is struggling financially to get back on their feet?
Conclusion
Substantial evidence supports the claim that the student lending crisis is real and devastating. All of the testimonials I’ve collected over the past year and a half illustrate that the lending crisis is far-reaching and affects millions of U.S. citizens. Indeed, it’s not just the borrowers who are suffering, but those who co-signed on their loans, their children, and so forth. As an inter-generational problem, it has the potential for long-term devastating impacts. While Japan has its “lost generation,” it is no exaggeration to say we risk losing many generations. Indeed, at this point they have no legal recourse, which could be used as leverage against their lenders. Current borrowers should not have to wait for future solutions. A two-part approach that includes both dramatic short- and long-term solutions could help millions of current borrowers get back on their feet and allow them to once again to become productive U.S. citizens. It’s time to listen to these voices and consider taking an approach that will affect their lives in a powerful way – they have been punished long enough.
President Obama said in his State of the Union Address, “‘in the United States of America, no one should go broke because they chose to go to college.’” Unfortunately, this reality has to come to pass for millions of Americans. While we need to continue to innovate, and reform education and education financing for future generations, we also owe it to current debtors, who have unfairly funded an unregulated industry, to help them pay back their debt in a reasonable, non-punitive way. It is time to move beyond high-flown rhetoric; it is time to act.
Instead of evacuating from areas like the Midwest for California, student loan refugees are fleeing the country for opportunities in South Korea and elsewhere (it's a strange thing that I'm now teaching The Grapes of Wrath here in South Korea. It's oddly similar to the current crises affecting the U.S., and it's a tale that's uncannily similar to my grandmother's upbringing in Kansas). Moreover, I had to evacuate my home in D.C. I sold everything, gave mementos away much like Ma Joad did, also said painful goodbyes to my family and friends, and fled to Asia. Even the simplest idea of the American dream is over.
Now is not the time to broaden the scope of one's critique. The student lending crisis is complex and inextricably bound to larger U.S. problems (excessive deregulation, the sub-prime mortgage crisis, etc.). While it's perfectly acceptable as a researcher and advocate to incorporate these various themes, it's absolutely necessary - in my view - to remain committed to this cause and to providing solutions for ways in which to end the student lending crisis. There is no doubt this work, I've come to realize, is going to require a lifetime commitment on my end. I know the ins and outs of academia, and I appreciate its depth. Alas, education truly matters to me, and I think everyone ought to have access to it.
Below is the final installment to "The Plight of Current Borrowers," my paper that was delivered at the Rev. Jesse Jackson and the Rainbow PUSH Coalition's recent convention on student loan reform. If you wish to read the paper in its entirety, which includes all the footnotes, you can do so here).
Part III: Providing Relief
There are a variety of ways by which the Administration, Congress, and the Department of Education could be helping current borrowers now and in the future. Short- and – long-term options are detailed below. Again, the complexity of the student lending industry and its relationship to the Federal Government means that hasty solutions aren’t the answer. In addition, student groups ought to be more involved in helping current borrowers. SAFRA has been passed and the next issue is the Department of Education’s attempt prospectively to limit borrowing at for-profits institutions through rulemaking. But that should not be the only focus. Although I applaud the consumer groups’ effort (POSD, PIRG, USSA, NACAC, etc.), their strategy is not as direct as it could be. They should have said the next big priority is to help current borrowers who have been saddled with debt, drawn attention to the lives currently being ruined, and from that moved on to prospective solutions armed with survey data and case studies showing how bad the debt/default situation is right now. Instead, they have tried to buck the money and influence monster head-on without building a convincing case.[18]
Short-Term Solutions
The Department of Education has the power to set up hotlines immediately to help answer calls from current borrowers. I investigated the type of responses one receives when calling the general line, and also asked my readers to tell me what sorts of responses they received. Overall, the Department of Education was unhelpful and informed me, as well as other callers, to “get in touch with their lenders to find out information about deferment of loans, etc., etc., etc. (if the loans were issued by private lenders).”
But lenders’ customer support lines are invariably staffed with lightly trained people making modest wages who know little more than to read scripts in front of them (not to mention the obvious conflict of interest in seeking advice about your loans from your lender). If the Department of Education were to install hotlines for current borrowers, they could in the very least provide support to individuals who are not aware of the types of loans they have. At this juncture, most borrowers with whom I am in contact (and that numbers in the thousands now) feel that no one cares about their financial situation, and many are unaware to whom they owe their debt (that is why I always make a point to ask borrowers if they have Federal loans, private loans, or both). Moreover, Secretary Duncan has the power to intervene and do something for current borrowers.
Although IBR has been implemented to help current borrowers and it is a good start, it has fallen short in a number of ways: (a) it does not cover private loans; (b) if a married couple files their taxes jointly, and both have student loan debt, both incomes are considered as one, but only one’s person debt load is taken into account, resulting inflated payments that are impractical for these couples with high shared debt loads; most importantly, it does nothing to assist with people in default. The number of people who will default is expected to rise, so it is imperative that a program like IBR or something else will assist them in getting out of this devastating situation. If these shortcomings were to be addressed, this good program could become a major part of helping – most likely – millions of people recover from default and dramatically improve their lives.
Long-term Solutions
Most of the solutions I suggest also come with a number of questions about why the Obama Administration and Department of Education are failing to address the devastating effects of how the student lending industry is structured and operated. Instead of dealing with the crisis directly, the legislation that has recently been passed only addresses a few aspects of the problem. Most worrisome is how millions of current borrowers have been left out of these solutions. While restoring bankruptcy rights to student borrowers is crucial, that is not the best possible approach to helping the indentured educated class. Indeed, restoring consumer protection rights is important. However, declaring bankruptcy is not a simple task, and it also leaves the borrower in a problematic financial situation. Instead, it would be more beneficial if additional legislation were proposed to ease the burden of owing mountains of debt. For instance, Sen. Sherrod Brown drafted a bill called the “Private Debt Swap Proposal.” (This bill proposes that the Federal Government take on private loan debt – i.e., assumes ownership of it – and therefore allow borrowers more flexibility with the terms of repayment). So far, there has been no interest or traction on this bill, and yet it could be a productive way to help current borrowers.
In my opinion, the biggest mistake the White House and the Department of Education are making is tackling the debt crisis on a prospective basis. Individuals in tax trouble are not being told to wait for new legislation so future generations of taxpayers are helped; rather, the IRS is trying to help current taxpayers resolve their debts. Likewise, homeowners facing foreclosure are not told to wait for legislation to help a future generation, but are being provided with assistance now. Why are student loan borrowers, who do not even have the same consumer protections to start with, being treated so differently?
It is more than possible to work out programs to help borrowers get back into repayment and allow them the opportunity to become productive citizens. If borrowers are expected to pay their loans back, which most of them wish to do, why can’t the interest rates be abolished, along with as the huge penalties people must pay in order get out of default? How do those fines and penalties help someone who is struggling financially to get back on their feet?
Conclusion
Substantial evidence supports the claim that the student lending crisis is real and devastating. All of the testimonials I’ve collected over the past year and a half illustrate that the lending crisis is far-reaching and affects millions of U.S. citizens. Indeed, it’s not just the borrowers who are suffering, but those who co-signed on their loans, their children, and so forth. As an inter-generational problem, it has the potential for long-term devastating impacts. While Japan has its “lost generation,” it is no exaggeration to say we risk losing many generations. Indeed, at this point they have no legal recourse, which could be used as leverage against their lenders. Current borrowers should not have to wait for future solutions. A two-part approach that includes both dramatic short- and long-term solutions could help millions of current borrowers get back on their feet and allow them to once again to become productive U.S. citizens. It’s time to listen to these voices and consider taking an approach that will affect their lives in a powerful way – they have been punished long enough.
President Obama said in his State of the Union Address, “‘in the United States of America, no one should go broke because they chose to go to college.’” Unfortunately, this reality has to come to pass for millions of Americans. While we need to continue to innovate, and reform education and education financing for future generations, we also owe it to current debtors, who have unfairly funded an unregulated industry, to help them pay back their debt in a reasonable, non-punitive way. It is time to move beyond high-flown rhetoric; it is time to act.
Instead of evacuating from areas like the Midwest for California, student loan refugees are fleeing the country for opportunities in South Korea and elsewhere (it's a strange thing that I'm now teaching The Grapes of Wrath here in South Korea. It's oddly similar to the current crises affecting the U.S., and it's a tale that's uncannily similar to my grandmother's upbringing in Kansas). Moreover, I had to evacuate my home in D.C. I sold everything, gave mementos away much like Ma Joad did, also said painful goodbyes to my family and friends, and fled to Asia. Even the simplest idea of the American dream is over.
Sabtu, 19 Juni 2010
Cryn's Story As A Student Loan Refugee And An Indentured Educated Citizen
Harsh critiques of the inherent and systemic problems of a democratic society are necessary. Such critiques allow these societies to flourish, and the most noteworthy critics are those who explicitly yearn for real change. Moreover, their critiques help democratic societies maintain a healthy equilibrium. Of course, critiques must be followed with a set of solutions from the critics (that's why they must show us how they yearn for something better), and those in power must always be open to these suggestions for improvement, even if that means that a shift in policy, or policies, may be politically dangerous.
I was loath to use the words "real change," because, in my view, that term has been sullied. But as a political engaged citizen, I think it's time that I reclaimed those words. The student lending crisis is not being solved, and that's why we must insist that our public servants turn their attention to our needs. Real change should no be out of reach for us.
Furthermore, if there are any countries that may be considering adopting the way in which the U.S. funds students who pursue higher education, it is my hope that this entire paper, " The Plight of Current Borrowers: An Appeal For Immediate Relief," will serve as a cautionary tale.
Currently the U.S. faces grave problems. The entire structure and stability of the country, in my view, is enormously vulnerable. It is out of balance thanks to thirty plus years of excessive deregulation, which allowed for the growth of a despicable type of corporatocracy. The result of this deregulation enabled U.S. agencies to lay with the very groups they should have been policing. Instead of maintaining boundaries and enforcing policies that would protect U.S. citizens, their behavior gave way to the most despicable forms of cronyism and nepotism. (Former employees, for instance, of Sallie Mae have burrowed themselves into the U.S. Department of Education, and it is certain that these individuals are not there to help student debtors). There is reason for why people despise government in the U.S., for it has turned a blind eye on it citizens for decades. But that does not mean that government is by nature corrupt and wicked. If there is a way to solve this issue within a specific agency, it is that which belongs to things pertaining to the funding of higher education, and what role the U.S. Government ought to be playing.
One reader recently told me that education and the cause for which I'm fighting is really nothing compared to the larger global issues that the U.S. is facing now. But I beg to differ.
I rarely if ever discuss my own personal struggles as a student debtor. However, the time has come for me to share. After all, so many of you have opened up to me. In so doing, you've invited me into your world of secrets, telling me the most intimate aspects of your everyday life struggles vis-a-vis the student lending crisis. And so it is my turn.
I write this entry as an expat who longs to one day return and work for others in my own country. As I've said before, it is a privilege and an honor to be teaching in the R.O.K. However, I'd much rather be carrying out good deeds and fulfilling my civic duty in the U.S.A. But at this juncture, my own country has made it impossible for me - and millions of others - to earn a decent wage and live a decent life. Neither my readers nor I feel entitled to enormous creature comforts (we've all been unjustly accused of that on hundreds and hundreds of walls about student loan debt). We are only asking for a fair chance, and hoping that our voices will be heard inside the beltway.
I long to be home! Oh, how I long to be home!
However, at this point I may never return, the reasons for which pertain to my personal finances and my political fury. As for finding a real career in my country, I searched exhaustively for one that would allow me to:
(a) flourish intellectually;
(b) put my degrees - especially my training in the social sciences- to work;
(c) continue building on years of professional experience;
(c) help others;
(d) and help contribute to building a better, more just U.S. society.
Like so many other educated professionals, I finally gave up. It is degrading and depressing (as one of my colleagues said last night to me) to search for a job and end up getting no where, and it's not easy sharing that truth with all of you. I recall how the days would pass with the phone never ringing. It was infuriating, that silence. I remember how I sent out specifically tailored cover letters and resumes, all of which - save for a few - were left unanswered. I did have some interviews. But these potential employers were quick to let me know that I was one of 10 candidates. Even when I made it to the second round of interviews, there would be 5 of us at that point. These interviews were grueling, because there were so many additional steps. When I was finally offered a job in Korea, I was in shock with how quickly that offer was extended to me. In the States, I had to write pieces, go for second interviews, etc., etc., etc. I grew tired of jumping through so many hoops. I began to wonder: what's wrong with me? Haven't I done everything right? I have all these degrees, all this professional experience, so what am I lacking? (Incidentally, there is a great blog called "But I Did Everything Right!" and it discusses these issues in the field of law).
My story does not have a tragic ending (for some debtors that's not the case). However, I did have to make the most difficult decision in my life - leave my country for a job abroad. I sold almost all of my belongings, left my cat behind with lovely people, and headed for work in Korea. Here, I have discovered an entire community of student loan debt refugees. That is both comforting and unnerving.
Stay tuned for the final installment of my paper.
I was loath to use the words "real change," because, in my view, that term has been sullied. But as a political engaged citizen, I think it's time that I reclaimed those words. The student lending crisis is not being solved, and that's why we must insist that our public servants turn their attention to our needs. Real change should no be out of reach for us.
Furthermore, if there are any countries that may be considering adopting the way in which the U.S. funds students who pursue higher education, it is my hope that this entire paper, " The Plight of Current Borrowers: An Appeal For Immediate Relief," will serve as a cautionary tale.
Currently the U.S. faces grave problems. The entire structure and stability of the country, in my view, is enormously vulnerable. It is out of balance thanks to thirty plus years of excessive deregulation, which allowed for the growth of a despicable type of corporatocracy. The result of this deregulation enabled U.S. agencies to lay with the very groups they should have been policing. Instead of maintaining boundaries and enforcing policies that would protect U.S. citizens, their behavior gave way to the most despicable forms of cronyism and nepotism. (Former employees, for instance, of Sallie Mae have burrowed themselves into the U.S. Department of Education, and it is certain that these individuals are not there to help student debtors). There is reason for why people despise government in the U.S., for it has turned a blind eye on it citizens for decades. But that does not mean that government is by nature corrupt and wicked. If there is a way to solve this issue within a specific agency, it is that which belongs to things pertaining to the funding of higher education, and what role the U.S. Government ought to be playing.
One reader recently told me that education and the cause for which I'm fighting is really nothing compared to the larger global issues that the U.S. is facing now. But I beg to differ.
I rarely if ever discuss my own personal struggles as a student debtor. However, the time has come for me to share. After all, so many of you have opened up to me. In so doing, you've invited me into your world of secrets, telling me the most intimate aspects of your everyday life struggles vis-a-vis the student lending crisis. And so it is my turn.
I write this entry as an expat who longs to one day return and work for others in my own country. As I've said before, it is a privilege and an honor to be teaching in the R.O.K. However, I'd much rather be carrying out good deeds and fulfilling my civic duty in the U.S.A. But at this juncture, my own country has made it impossible for me - and millions of others - to earn a decent wage and live a decent life. Neither my readers nor I feel entitled to enormous creature comforts (we've all been unjustly accused of that on hundreds and hundreds of walls about student loan debt). We are only asking for a fair chance, and hoping that our voices will be heard inside the beltway.
I long to be home! Oh, how I long to be home!
However, at this point I may never return, the reasons for which pertain to my personal finances and my political fury. As for finding a real career in my country, I searched exhaustively for one that would allow me to:
(a) flourish intellectually;
(b) put my degrees - especially my training in the social sciences- to work;
(c) continue building on years of professional experience;
(c) help others;
(d) and help contribute to building a better, more just U.S. society.
Like so many other educated professionals, I finally gave up. It is degrading and depressing (as one of my colleagues said last night to me) to search for a job and end up getting no where, and it's not easy sharing that truth with all of you. I recall how the days would pass with the phone never ringing. It was infuriating, that silence. I remember how I sent out specifically tailored cover letters and resumes, all of which - save for a few - were left unanswered. I did have some interviews. But these potential employers were quick to let me know that I was one of 10 candidates. Even when I made it to the second round of interviews, there would be 5 of us at that point. These interviews were grueling, because there were so many additional steps. When I was finally offered a job in Korea, I was in shock with how quickly that offer was extended to me. In the States, I had to write pieces, go for second interviews, etc., etc., etc. I grew tired of jumping through so many hoops. I began to wonder: what's wrong with me? Haven't I done everything right? I have all these degrees, all this professional experience, so what am I lacking? (Incidentally, there is a great blog called "But I Did Everything Right!" and it discusses these issues in the field of law).
My story does not have a tragic ending (for some debtors that's not the case). However, I did have to make the most difficult decision in my life - leave my country for a job abroad. I sold almost all of my belongings, left my cat behind with lovely people, and headed for work in Korea. Here, I have discovered an entire community of student loan debt refugees. That is both comforting and unnerving.
Stay tuned for the final installment of my paper.
I left him, and so much more, behind . . .
Jumat, 18 Juni 2010
The Plight of Current Borrowers: An Appeal For Immediate Relief -Testimonials (Cont.)
My paper, "The Plight of Current Borrowers: An Appeal For Immediate Relief," which was part of the recent convention sponsored by the Rev. Jesse Jackson and the Rainbow PUSH Coalition has been posted here in installments (and will I'll continue to do so for a few more posts, because it's quite long). Again, the paper can be read in its entirety here. This posting includes the second and final portion from the section entitled, "Testimonials." Moreover, the previous installments can be read here and here.
Testimonials (Cont.):
Debtors with children
In this next case, we see the way in which the burden of student loan debt strains family relationships.
The following excerpt is from a woman who is married with a young son. Based upon our correspondence, she did not indicate that she was having marital problems due to the financial difficulties that she and her spouse were dealing with. However, in several cases I’m aware of, a divorce is imminent as a result of one of the spouses owing money on student loans. In this situation, on the other hand, the debtor’s young son is preoccupied with the family’s finances because of his mother’s student loan debt.
Mrs. A from the Midwest explains:
My husband has owned and operated a small business for nearly 25 years. As he was beginning to come out of debt, the economy crashed. He has been able to survive by clinging to the life of the business by the tips of his nails. I decided to get my master’s degree with the hope of getting a higher paying job that would allow us to make it through the final push of his plan.
I graduated in December of ’09 with my master’s degree and have yet to find a job in my field. I’ve spent the equivalent of a full-time job searching, sending resumes, and engaging in follow-up[s], only to make it several times to the last round and lose out to someone else. We have been living sparsely, borrowing money from each other when we get it to make ends meet. Our son turned 11 on May 12[th] and asked me what he should do with his birthday money. I told him he should save it but instead, he asked how he could be contribute to the family budget—he feels compelled to 'put it to the best possible use [my emphasis].'
My student loans are out of control. Between undergrad and grad school, the loans have amassed exponentially. I did pay on them regularly in between undergrad and grad, but with the state of the economy . . . I am terrified to assess and evaluate [the] payment[s] of my new loan situation. If I end up getting a job starting at $30,000 a year, that would be the answer to our financial prayers. However, at this point, how much of that is going to go toward student loans now? We are barely hanging on as it is. . . . We pay cash for our medical care and medication, have pared our budget to the core, and weigh every penny we spend against the need for the product/service.
I fear, however, that adding student loan payments into an already frayed budget will push us over the edge. And this is if I can find a job! If not, I can defer payment a while, but that is just delaying the inevitable.
In even the most personal of issues lenders act – I’d argue – without mercy. In situations of undue hardship, the arguments used to demean the borrower are excessive. As Brett Weiss and Deanne Loonin point out, “in one case, creditors aggressively questioned a woman about why she had children after she took out student loans if she was not going to be able to afford both children and loans. . . . [T]he creditor’s counsel got the borrower to acknowledge that she had borne all 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.” In the closing argument counsel returned to her answer, and stated, “you have to make the decision to have a family in light of what you can afford.”
In the next example, this co-borrower had difficulty solving the debt she owed all because of an untimely death:
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 wanted us to get loans through Wachovia or Sallie Mae and only one was that accessible from their website (Wachovia) where he was supposed to sign up for the loan. So we ended up getting a private loan from Wachovia . . . instead of a federal loan.
One of the questions that this testimony raises is why the boyfriend’s financial aid office at his school failed to provide him with detailed information about the differences between federal loans versus private loans.
She continues:
Unfortunately, he passed away a couple of weeks before his training was complete. Now the loan deferment period is coming to and [sic] end and they obviously want their money. . . They also sent a letter, addressed to him, stating that the loans don’t offer a death discharge. . . I understand that I’m 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 them, didn’t even get to go for a ride!
So, even when a person dies, they cannot escape their student loan debt. To add insult to injury, this woman had to receive a bill that was callously sent to her deceased boyfriend’s lender.
Older Debtors: Health Problems and the Poor Prospects of finding Employment
Much like younger graduates, older debtors’ job prospects are grim. Many of the older debtors with whom I have been in contact are either unemployed or underemployed. Moreover, they have to contend with the possibility of perhaps never finding employment again. To make matters worse, many of them have health problems. These two factors - the cost of health care, compounded with their student loan debt – is making it nearly impossible to cover monthly expenses (food, transportation, rent/mortgage, etc.). Oftentimes, these debtors are forced to make difficult decisions like paying for necessities such as medicine and groceries. In so doing, they have no other choice but to stop making payments on their student loans, or juggle these bills in a precarious way.
Once a debtor, regardless of age, stops making payments on their student loans, they enter the vicious realm of default. For older debtors with health issues and poor prospects for future employment, their lives, and the lives around them, are devastated.
Ms. W poignantly describes her difficulties in paying her loans as a result of severe health problems. In this case, however, her loans were mistakenly put into the category of default rather than deferment by her lender (a common occurrence that leads to penalties that the debtor must pay, despite the fact that resulted in a clerical error).
Mrs. W writes [truncated version]:
Today I am 46 years old. I was 22 when my father died suddenly in 1985. I had no idea what I was getting myself into when I took out student loans to finish my BA at a college in Michigan. Let me preface this by saying I have never been in default and I have always believed in paying back what I borrowed.
I was majoring in theater and wanted to teach, but I was advised by the college to get a "real career," so I took out more loans and added a BA in Psychology. They told me not to worry, I could pay these back. I worked three part time jobs, and moved off campus.
I went on to get my Master’s in Counseling Psychology, which was paid for by my employer, Thank God. I found to my dismay that I just couldn't make enough money on a salary of $25,000 as a counselor to make the loan payments and take care of everyday life. My cancer in 1986 left me thousands in debt. In 1991, I ended up filing a chapter 13 for my medical bills. Subsequently, a woman at Wachovia Bank noted this, and accidentally put my loans in default instead of deferment.
My life became a nightmare for the next seven years. This was before the regular use of computers. I was on the phone for hours on hold, but I couldn't get anyone to talk to me. Creditors treated me like a leper. I was actually told by a well meaning person that "your loans have been bought and sold so many times, they are probably in a shoe box in someone’s closet."
Finally in 1995, after getting nowhere, I contacted the US Dept. of Education. I literally sent them a shoebox full of notes about my conversations and letters I wrote trying to ask for help. They eventually tracked them down and subtracted the penalties, but not the interest, so my $25,000 turned into $45,000.
I tried to make the payments on a counselor's salary, even on an income contingent plan or any plan I could find, but it was too much money on $28,500 per year. I made payments whenever I could afford to but they never seemed to count because they were never enough to cover even the interest. My payments were more than my rent! I have deferred and been in forbearance so many times it's not even funny.
I had to declare bankruptcy again in 2000 due to lack of finances and everyday living, and ongoing medical issues with my cancerous nodules on my thyroid which prevented me from working for 7 months in 1999 – (once) again, deferment, hardship forbearance, more compiling of interest.
I wanted to go into the NHSC (National Health Service Corps) which is a program for health professionals to go into public service into rural, urban (low income areas), or prisons to work for a period of time in exchange for loan forgiveness. I had a license in Michigan, but they changed their policy and you had to already have your national independent license.
I couldn't afford to stop working to get my PhD, so after 10 years of getting nowhere and the threat of default, I went back to school at age 41 in 2004 and got my MSW so I could be in the NHSC. This was not something I wanted to do, but I wanted to get my loans repayment [sic] and I already had devoted my life to public service, it seemed the logical thing to do. Another Masters would increase my loans, but I could pay it back through this program.
I have new student loans and consolidated them. Now, my loans have ballooned to $160,000. I can't afford even to make the smallest payment because I wasn't making enough on a social worker’s salary. The whole thing is insane.
I put off and sacrificed most things people my age have; a family, vacations, stocks, savings, investments, retirement and most of all children; because I had to pay my loans. My friends have watched me save and scrimp and never get anywhere.
There were times I had to decide whether or not to buy food or pay my loans. Pay the heat or pay the loans. Get my medication or pay my loans. Eat rice and live in the dark . . . I can never get good credit rates because this $160,000 shows up on my credit.
I just got married and have Lyme’s disease that damaged my neurological system and I have not been able to work full time. [In addition,] my medications are really expensive.
I have been made to feel like dead beat. I have felt very ashamed. I feel as though I can never get ahead. It would be nice once in my life to have some nice things, or not always having to worry about defaulting and having my social work license taken away, and then I can't work. I still have nightmares about this.
This July 2009 they finally passed legislation for income based payments instead of income contingent. I want nothing more than to pay my loans off, I am grateful I was able to get an education, but I cannot afford almost $1000.00 per month, and the penalties that accrue if you don't pay the full amount to even cover the interest. Even if I get a great paying job, most of the money will be go to student loans. This is a very complicated situation.
I am working part-time now and am on the Income Based Program [IBR] where as of now I pay $50 per month. I wish I could do more.
In closing, it is my hope that when people read this, they understand I am not asking for a free ride-only a just one. I am requesting that with the new public service forgiveness legislation, that my 23 years of public service be taken into account and allow for my forgiveness to be retroactive.
Ms. W hopes to solve her financial issues at home. In contrast to Ms. W, Mr. A, a contract laborer, is thinking about fleeing the country, and returning to China again, where he previously worked.
He begins:
China is nice and I was treated with great respect and offered a superior job while there. Returning to live out my life there in usefulness and without the hounding of collectors is an attractive option. I know nothing about loans being discharged other than extreme disability that must be well verified. I heard poverty counts, but I do not know what the collectors mean by that. My wages are currently garnished . . . Garnishment will be a fixture the rest of my life under current law; next year they will start on my Social Security, taking 25%. If I have my father’s genetics in aging, I have at least 26 years of Social Security garnishment, living on $750 a month, and poverty staring me down.
We all went to school to better ourselves. We did not sign up for this when we signed an agreement to pay back our student loans.
We are consumers and no one is protecting our rights. Student loan borrowers, past and present, have fewer rights than prisoners, gamblers, or non-citizens. Gamblers, for example, can deduct losses from their taxes and file for bankruptcy; student loan debtors cannot. We pray for anti-predatory lending legislation that will protect consumers from abusive practices. Welcome to our world.
No one wishes to be invited into this world. Based upon these testimonials it is more than just an unpleasant realm. It is clear that indentured educated citizens feel they are (a) useless to society; (b) believe and have been made to feel that they are second class citizens (“dead beat[s]” as Ms. W mentioned), and, worst of all; (c) hopeless.
Testimonials (Cont.):
Debtors with children
In this next case, we see the way in which the burden of student loan debt strains family relationships.
The following excerpt is from a woman who is married with a young son. Based upon our correspondence, she did not indicate that she was having marital problems due to the financial difficulties that she and her spouse were dealing with. However, in several cases I’m aware of, a divorce is imminent as a result of one of the spouses owing money on student loans. In this situation, on the other hand, the debtor’s young son is preoccupied with the family’s finances because of his mother’s student loan debt.
Mrs. A from the Midwest explains:
My husband has owned and operated a small business for nearly 25 years. As he was beginning to come out of debt, the economy crashed. He has been able to survive by clinging to the life of the business by the tips of his nails. I decided to get my master’s degree with the hope of getting a higher paying job that would allow us to make it through the final push of his plan.
I graduated in December of ’09 with my master’s degree and have yet to find a job in my field. I’ve spent the equivalent of a full-time job searching, sending resumes, and engaging in follow-up[s], only to make it several times to the last round and lose out to someone else. We have been living sparsely, borrowing money from each other when we get it to make ends meet. Our son turned 11 on May 12[th] and asked me what he should do with his birthday money. I told him he should save it but instead, he asked how he could be contribute to the family budget—he feels compelled to 'put it to the best possible use [my emphasis].'
My student loans are out of control. Between undergrad and grad school, the loans have amassed exponentially. I did pay on them regularly in between undergrad and grad, but with the state of the economy . . . I am terrified to assess and evaluate [the] payment[s] of my new loan situation. If I end up getting a job starting at $30,000 a year, that would be the answer to our financial prayers. However, at this point, how much of that is going to go toward student loans now? We are barely hanging on as it is. . . . We pay cash for our medical care and medication, have pared our budget to the core, and weigh every penny we spend against the need for the product/service.
I fear, however, that adding student loan payments into an already frayed budget will push us over the edge. And this is if I can find a job! If not, I can defer payment a while, but that is just delaying the inevitable.
In even the most personal of issues lenders act – I’d argue – without mercy. In situations of undue hardship, the arguments used to demean the borrower are excessive. As Brett Weiss and Deanne Loonin point out, “in one case, creditors aggressively questioned a woman about why she had children after she took out student loans if she was not going to be able to afford both children and loans. . . . [T]he creditor’s counsel got the borrower to acknowledge that she had borne all 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.” In the closing argument counsel returned to her answer, and stated, “you have to make the decision to have a family in light of what you can afford.”
In the next example, this co-borrower had difficulty solving the debt she owed all because of an untimely death:
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 wanted us to get loans through Wachovia or Sallie Mae and only one was that accessible from their website (Wachovia) where he was supposed to sign up for the loan. So we ended up getting a private loan from Wachovia . . . instead of a federal loan.
One of the questions that this testimony raises is why the boyfriend’s financial aid office at his school failed to provide him with detailed information about the differences between federal loans versus private loans.
She continues:
Unfortunately, he passed away a couple of weeks before his training was complete. Now the loan deferment period is coming to and [sic] end and they obviously want their money. . . They also sent a letter, addressed to him, stating that the loans don’t offer a death discharge. . . I understand that I’m 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 them, didn’t even get to go for a ride!
So, even when a person dies, they cannot escape their student loan debt. To add insult to injury, this woman had to receive a bill that was callously sent to her deceased boyfriend’s lender.
Older Debtors: Health Problems and the Poor Prospects of finding Employment
Much like younger graduates, older debtors’ job prospects are grim. Many of the older debtors with whom I have been in contact are either unemployed or underemployed. Moreover, they have to contend with the possibility of perhaps never finding employment again. To make matters worse, many of them have health problems. These two factors - the cost of health care, compounded with their student loan debt – is making it nearly impossible to cover monthly expenses (food, transportation, rent/mortgage, etc.). Oftentimes, these debtors are forced to make difficult decisions like paying for necessities such as medicine and groceries. In so doing, they have no other choice but to stop making payments on their student loans, or juggle these bills in a precarious way.
Once a debtor, regardless of age, stops making payments on their student loans, they enter the vicious realm of default. For older debtors with health issues and poor prospects for future employment, their lives, and the lives around them, are devastated.
Ms. W poignantly describes her difficulties in paying her loans as a result of severe health problems. In this case, however, her loans were mistakenly put into the category of default rather than deferment by her lender (a common occurrence that leads to penalties that the debtor must pay, despite the fact that resulted in a clerical error).
Mrs. W writes [truncated version]:
Today I am 46 years old. I was 22 when my father died suddenly in 1985. I had no idea what I was getting myself into when I took out student loans to finish my BA at a college in Michigan. Let me preface this by saying I have never been in default and I have always believed in paying back what I borrowed.
I was majoring in theater and wanted to teach, but I was advised by the college to get a "real career," so I took out more loans and added a BA in Psychology. They told me not to worry, I could pay these back. I worked three part time jobs, and moved off campus.
I went on to get my Master’s in Counseling Psychology, which was paid for by my employer, Thank God. I found to my dismay that I just couldn't make enough money on a salary of $25,000 as a counselor to make the loan payments and take care of everyday life. My cancer in 1986 left me thousands in debt. In 1991, I ended up filing a chapter 13 for my medical bills. Subsequently, a woman at Wachovia Bank noted this, and accidentally put my loans in default instead of deferment.
My life became a nightmare for the next seven years. This was before the regular use of computers. I was on the phone for hours on hold, but I couldn't get anyone to talk to me. Creditors treated me like a leper. I was actually told by a well meaning person that "your loans have been bought and sold so many times, they are probably in a shoe box in someone’s closet."
Finally in 1995, after getting nowhere, I contacted the US Dept. of Education. I literally sent them a shoebox full of notes about my conversations and letters I wrote trying to ask for help. They eventually tracked them down and subtracted the penalties, but not the interest, so my $25,000 turned into $45,000.
I tried to make the payments on a counselor's salary, even on an income contingent plan or any plan I could find, but it was too much money on $28,500 per year. I made payments whenever I could afford to but they never seemed to count because they were never enough to cover even the interest. My payments were more than my rent! I have deferred and been in forbearance so many times it's not even funny.
I had to declare bankruptcy again in 2000 due to lack of finances and everyday living, and ongoing medical issues with my cancerous nodules on my thyroid which prevented me from working for 7 months in 1999 – (once) again, deferment, hardship forbearance, more compiling of interest.
I wanted to go into the NHSC (National Health Service Corps) which is a program for health professionals to go into public service into rural, urban (low income areas), or prisons to work for a period of time in exchange for loan forgiveness. I had a license in Michigan, but they changed their policy and you had to already have your national independent license.
I couldn't afford to stop working to get my PhD, so after 10 years of getting nowhere and the threat of default, I went back to school at age 41 in 2004 and got my MSW so I could be in the NHSC. This was not something I wanted to do, but I wanted to get my loans repayment [sic] and I already had devoted my life to public service, it seemed the logical thing to do. Another Masters would increase my loans, but I could pay it back through this program.
I have new student loans and consolidated them. Now, my loans have ballooned to $160,000. I can't afford even to make the smallest payment because I wasn't making enough on a social worker’s salary. The whole thing is insane.
I put off and sacrificed most things people my age have; a family, vacations, stocks, savings, investments, retirement and most of all children; because I had to pay my loans. My friends have watched me save and scrimp and never get anywhere.
There were times I had to decide whether or not to buy food or pay my loans. Pay the heat or pay the loans. Get my medication or pay my loans. Eat rice and live in the dark . . . I can never get good credit rates because this $160,000 shows up on my credit.
I just got married and have Lyme’s disease that damaged my neurological system and I have not been able to work full time. [In addition,] my medications are really expensive.
I have been made to feel like dead beat. I have felt very ashamed. I feel as though I can never get ahead. It would be nice once in my life to have some nice things, or not always having to worry about defaulting and having my social work license taken away, and then I can't work. I still have nightmares about this.
This July 2009 they finally passed legislation for income based payments instead of income contingent. I want nothing more than to pay my loans off, I am grateful I was able to get an education, but I cannot afford almost $1000.00 per month, and the penalties that accrue if you don't pay the full amount to even cover the interest. Even if I get a great paying job, most of the money will be go to student loans. This is a very complicated situation.
I am working part-time now and am on the Income Based Program [IBR] where as of now I pay $50 per month. I wish I could do more.
In closing, it is my hope that when people read this, they understand I am not asking for a free ride-only a just one. I am requesting that with the new public service forgiveness legislation, that my 23 years of public service be taken into account and allow for my forgiveness to be retroactive.
Ms. W hopes to solve her financial issues at home. In contrast to Ms. W, Mr. A, a contract laborer, is thinking about fleeing the country, and returning to China again, where he previously worked.
He begins:
China is nice and I was treated with great respect and offered a superior job while there. Returning to live out my life there in usefulness and without the hounding of collectors is an attractive option. I know nothing about loans being discharged other than extreme disability that must be well verified. I heard poverty counts, but I do not know what the collectors mean by that. My wages are currently garnished . . . Garnishment will be a fixture the rest of my life under current law; next year they will start on my Social Security, taking 25%. If I have my father’s genetics in aging, I have at least 26 years of Social Security garnishment, living on $750 a month, and poverty staring me down.
We all went to school to better ourselves. We did not sign up for this when we signed an agreement to pay back our student loans.
We are consumers and no one is protecting our rights. Student loan borrowers, past and present, have fewer rights than prisoners, gamblers, or non-citizens. Gamblers, for example, can deduct losses from their taxes and file for bankruptcy; student loan debtors cannot. We pray for anti-predatory lending legislation that will protect consumers from abusive practices. Welcome to our world.
No one wishes to be invited into this world. Based upon these testimonials it is more than just an unpleasant realm. It is clear that indentured educated citizens feel they are (a) useless to society; (b) believe and have been made to feel that they are second class citizens (“dead beat[s]” as Ms. W mentioned), and, worst of all; (c) hopeless.
The Indentured Educated Class needs an FDR. Hell, the U.S. needs an FDR. Where's our FDR?
Kamis, 17 Juni 2010
The Plight of Current Borrowers: An Appeal For Immediate Relief -Testimonials
Here's the next installment - "Testimonials" - from my paper entitled, The Plight of Current Borrowers: An Appeal For Immediate Relief, which was included in the recent conference hosted by the Rev. Jesse Jackson and the Rainbow PUSH Coalition. Again, the paper can be read in its entirety here. The first installment was posted on June 14th, 2010. In addition, the following post is just the first part from this particular section.
I should also add, the Mr. J. recently informed me that he's not a Mister, but rather a Ms. Since this paper was already delivered, I didn't change the gender. Plus, that error doesn't change the weight of the claims.
Part II: Testimonials
The Real Face(s) Of The Student Lending Crisis
The following testimonials were collected from a number of sources, such as the testimony of Brett Weiss and Deanne Loonin for the U.S. House of Representatives Committee on the Judiciary Subcommittee on the Judiciary on Commercial and Administrative Law, and so forth. However, the majority of the testimonials were culled from my own advocacy work. This research has entailed interviewing and listening to hundreds upon hundreds of stories from student loan debtors. When these voices are situated within the history of student lending industry (from its emergence as a Government entity in the mid-1960s, to its eventual privatization in the 1990s, up to the present), the scope and depth of this crisis is alarming.
The indentured educated class is heterogeneous. Their ages and gender differ, as do their geographic locations. They are scattered from coast to coast in the U.S. Not only that, many indentured educated citizens now live worlds away from home (many have left the U.S. for wages that allow them to escape that dreadful and risky “paycheck-to-paycheck” type of living). They are all united, however, in being indentured – and often for the rest of their lives – to their respective student lenders. The following testimonials have been organized into 4 categories: (1) desperate parents of children who have recently graduated; (2) recent graduates; (3) debtors with their own families; and (4) older individuals who are contending with health issues and so forth.
Frantic Parents
After several months of advocating for student debtors, parents of debtors began to get in touch with me. Moreover, most of these parents had not co-signed for loans, but are enormously concerned about the financial and mental well-being of their children. The all shared a frantic tone, exemplified by Mrs.
L words of desperation:
I am writing you personally because I am not at all smart in the way Washington works . . . . But in all my reading of your work[s] . . . I know only that we -with Student loan debt - are getting the shaft. I say we because as a mother of one of those students I know full well it will be and is my problem as much as his. Every day reading your site I find one more thing that I have been so blind to. I just feel there are too many loop holes and unpublished facts. Too many under the table, off the record, you owe me a favor deals on Capitol Hill.
How do we hit them in the heart and make this a front page, you have been exposed sort of event? I am ready. . . . My son is hurting so bad, mentally, physically and his life at 26 has stopped being productive at all. He works in a job he hates, to make a payment on a degree that he loves, but has no hope at all of getting.
The employers turn him down now with the excuse that it's not the lack of experience, but now he has been out of school 2 years and they feel he has forgotten most of what he learned in the 4.5 years of college.
For God's sake when will he ever catch a break? I cry about this daily. I read your site every night hoping for a light at the end of the tunnel. But . . . I think the light has gone out.
Mrs. L’s son, like many recent graduates, feels he has a useless degree. The career he had hoped to pursue once he graduated from college is now beyond his reach. Instead of feeling like a productive member of society, Mrs. L’s son works for ten dollars an hour in a mall and feels as useless as the piece of paper that he received upon graduating. He feels ashamed because his wages make it impossible for him to pay his student loan debts, so he must rely upon his parents, who are kind enough to help him cover his bills, along with his living expenses.
Recent Graduates and Struggling Individuals with Families
Recent data in a paper by the Economic Policy Institute, a non-partisan think tank located in Washington, D.C., reveals that the graduating class of 2010 will be encountering the worst job market since the end of World War II. Much like Mrs. L’s son, these younger graduates are being crushed by their loans. This study also shows “that unemployment rates for both college graduates and non-graduates younger than 25 are nearly double their pre-recession levels.” Recently, a young grad wrote about his circumstances, and that fact that his grandmother, who co-signed on his loans, is now receiving harassing phone calls from his lender, AES.
Mr. J expressed anguish that his grandmother was being called regularly by AES:
My grandmother is retired, and gets social security checks . . . we sent in the paper work to show that neither one of us was working. After exceeding my FORBEARANCE time, I was finally told my only option was the graduate [sic] repayment [option].
The repayment option seems to be working for Mr. J; however, AES continues to call his grandmother.
Mr. J continues:
Now the phone calls, and the letters . . . they called my granny and told her that, she needs to make a payment . . . She told them she was retired, and the lady said, “Well mam [sic], you signed the paperwork.” The last time I spoke with them, I recorded [it]. The girl basically said there was nothing I could do but pay. She put in my account, that I did not have a job, and my concerns with them calling my grandmother, and my concerns about her health. Then the girl tells me, well, you don’t have to worry about garnishing your grandmother’s checks until after 30 days . . . Then she continued to tell me how they were going to harass me. So I say to her, “Look Rebecca . . . I’m going to have to pay AES for the rest of my life. Why can’t you drop the $168 and let me deal with the $50 . . . I mean hell . . . help me, so I can help you get your money."
I am so frustrated and stressed. Between them, and finding a job... I feel like I will never surface—I will continue sinking in this black abyss called the ‘American Dream [my emphasis].’ I don’t understand. I don’t want to answer their calls, because this will get me nowhere.
For those who co-signed on student loans, the calls from the lender never cease, just as way they never stop calling the actual debtors. One of my readers is called every single day, seven days a week at six o’clock in the morning by Sallie Mae. Much like other lenders’ harassment tactics, they are relentless, and refuse to listen to the borrowers. When this reader receives the call the same conversation ensues. Even though he’s unable to make the payment, and they are unwilling to negotiate a deal with him, they still call. To make matters worse, one rarely, if ever, speaks to the same representative, and these employees refuse to give out their full names. They’ll repeatedly say, “I’m not at liberty to give you that information.” Meanwhile, they have full information of the debtor’s personal information.
I should also add, the Mr. J. recently informed me that he's not a Mister, but rather a Ms. Since this paper was already delivered, I didn't change the gender. Plus, that error doesn't change the weight of the claims.
Part II: Testimonials
The Real Face(s) Of The Student Lending Crisis
The following testimonials were collected from a number of sources, such as the testimony of Brett Weiss and Deanne Loonin for the U.S. House of Representatives Committee on the Judiciary Subcommittee on the Judiciary on Commercial and Administrative Law, and so forth. However, the majority of the testimonials were culled from my own advocacy work. This research has entailed interviewing and listening to hundreds upon hundreds of stories from student loan debtors. When these voices are situated within the history of student lending industry (from its emergence as a Government entity in the mid-1960s, to its eventual privatization in the 1990s, up to the present), the scope and depth of this crisis is alarming.
The indentured educated class is heterogeneous. Their ages and gender differ, as do their geographic locations. They are scattered from coast to coast in the U.S. Not only that, many indentured educated citizens now live worlds away from home (many have left the U.S. for wages that allow them to escape that dreadful and risky “paycheck-to-paycheck” type of living). They are all united, however, in being indentured – and often for the rest of their lives – to their respective student lenders. The following testimonials have been organized into 4 categories: (1) desperate parents of children who have recently graduated; (2) recent graduates; (3) debtors with their own families; and (4) older individuals who are contending with health issues and so forth.
Frantic Parents
After several months of advocating for student debtors, parents of debtors began to get in touch with me. Moreover, most of these parents had not co-signed for loans, but are enormously concerned about the financial and mental well-being of their children. The all shared a frantic tone, exemplified by Mrs.
L words of desperation:
I am writing you personally because I am not at all smart in the way Washington works . . . . But in all my reading of your work[s] . . . I know only that we -with Student loan debt - are getting the shaft. I say we because as a mother of one of those students I know full well it will be and is my problem as much as his. Every day reading your site I find one more thing that I have been so blind to. I just feel there are too many loop holes and unpublished facts. Too many under the table, off the record, you owe me a favor deals on Capitol Hill.
How do we hit them in the heart and make this a front page, you have been exposed sort of event? I am ready. . . . My son is hurting so bad, mentally, physically and his life at 26 has stopped being productive at all. He works in a job he hates, to make a payment on a degree that he loves, but has no hope at all of getting.
The employers turn him down now with the excuse that it's not the lack of experience, but now he has been out of school 2 years and they feel he has forgotten most of what he learned in the 4.5 years of college.
For God's sake when will he ever catch a break? I cry about this daily. I read your site every night hoping for a light at the end of the tunnel. But . . . I think the light has gone out.
Mrs. L’s son, like many recent graduates, feels he has a useless degree. The career he had hoped to pursue once he graduated from college is now beyond his reach. Instead of feeling like a productive member of society, Mrs. L’s son works for ten dollars an hour in a mall and feels as useless as the piece of paper that he received upon graduating. He feels ashamed because his wages make it impossible for him to pay his student loan debts, so he must rely upon his parents, who are kind enough to help him cover his bills, along with his living expenses.
Recent Graduates and Struggling Individuals with Families
Recent data in a paper by the Economic Policy Institute, a non-partisan think tank located in Washington, D.C., reveals that the graduating class of 2010 will be encountering the worst job market since the end of World War II. Much like Mrs. L’s son, these younger graduates are being crushed by their loans. This study also shows “that unemployment rates for both college graduates and non-graduates younger than 25 are nearly double their pre-recession levels.” Recently, a young grad wrote about his circumstances, and that fact that his grandmother, who co-signed on his loans, is now receiving harassing phone calls from his lender, AES.
Mr. J expressed anguish that his grandmother was being called regularly by AES:
My grandmother is retired, and gets social security checks . . . we sent in the paper work to show that neither one of us was working. After exceeding my FORBEARANCE time, I was finally told my only option was the graduate [sic] repayment [option].
The repayment option seems to be working for Mr. J; however, AES continues to call his grandmother.
Mr. J continues:
Now the phone calls, and the letters . . . they called my granny and told her that, she needs to make a payment . . . She told them she was retired, and the lady said, “Well mam [sic], you signed the paperwork.” The last time I spoke with them, I recorded [it]. The girl basically said there was nothing I could do but pay. She put in my account, that I did not have a job, and my concerns with them calling my grandmother, and my concerns about her health. Then the girl tells me, well, you don’t have to worry about garnishing your grandmother’s checks until after 30 days . . . Then she continued to tell me how they were going to harass me. So I say to her, “Look Rebecca . . . I’m going to have to pay AES for the rest of my life. Why can’t you drop the $168 and let me deal with the $50 . . . I mean hell . . . help me, so I can help you get your money."
I am so frustrated and stressed. Between them, and finding a job... I feel like I will never surface—I will continue sinking in this black abyss called the ‘American Dream [my emphasis].’ I don’t understand. I don’t want to answer their calls, because this will get me nowhere.
For those who co-signed on student loans, the calls from the lender never cease, just as way they never stop calling the actual debtors. One of my readers is called every single day, seven days a week at six o’clock in the morning by Sallie Mae. Much like other lenders’ harassment tactics, they are relentless, and refuse to listen to the borrowers. When this reader receives the call the same conversation ensues. Even though he’s unable to make the payment, and they are unwilling to negotiate a deal with him, they still call. To make matters worse, one rarely, if ever, speaks to the same representative, and these employees refuse to give out their full names. They’ll repeatedly say, “I’m not at liberty to give you that information.” Meanwhile, they have full information of the debtor’s personal information.
Selasa, 15 Juni 2010
"The Plight Of Current Borrowers: An Appeal For Immediate Relief"
Perhaps I should have been more creative with the title of this paper and used something that was similar to this AFL-CIO button? This type slogan may serve to help me think of a good title for my book on the student lending crisis. However, the title that I chose was practical. So, for the purposes of disseminating information about indentured educated citizens, I was satisfied by its straightforwardness.
Here is the first installment from the paper I wrote for the Rev. Jackson and the Rainbow PUSH Coalition's town hall meeting about student loan reform. Each installment will include a link to the entire version (see the document in its entirety here).
The TOC and Introduction are below (the footnotes, incidentally, have been and will be omitted in these posting, but they can be found when viewing the entire document).
Table of Contents
Part I: Introduction
Part II: Testimonials
Part III: Providing Relief
Part IV: Conclusion
Part I: Introduction
Thank you for inviting me to be a panelist at this important and timely convention regarding student
loan reform. Since I am currently working and living in South Korea I was unable to make the necessary arrangements to attend in person, and I regret being unable to be present. However, the Rev. Jesse Jackson and the Rainbow PUSH Coalition encouraged me to submit a paper to discuss what I view to be an enormous problem – the student lending crisis and, more specifically, current borrowers who are struggling or unable to pay off their student loans.
My name is Ms. C. Cryn Johannsen, and I am the Founder of Education Matters and an advocate for U.S. citizens who are, what I call, part of the indentured educated class. I have spent years in and around academia, so I am familiar with and fond of this milieu. I have a Master’s Degree in the Social Sciences from the University of Chicago and a Master’s Degree in History from Brown University. In 2007 I began a career in publishing and relocated to the Washington, D.C. area. This position provided me with deeper insights into the various structures of higher education. Although I had had conversations about student loan issues with fellow graduate colleagues, professors, etc., those discussions increased in their frequency shortly after moving to D.C. That was a direct result of the financial crisis that affected millions of Americans. Those who have been hit the hardest are not just homeowners, but also include student borrowers. At this point – March 2009 – I began to volunteer on a full-time basis for student loan debtors. In addition to volunteering and advocating on behalf of student loan debtors, I started researching and writing consistently about student loan reform at Education Matters. I sat in on hearings about the student lending crisis on the Hill, had the opportunity to meet the President of The Institute for College Access and Success (TICAS.org), Ms. Lauren Asher, and also attended an alumni event sponsored by the University of Chicago where Secretary Arne Duncan was a guest speaker. On top of making these connections, I made a point to become acquainted with a number of higher education policy analysts, such as Dr. Mark Schneider at AEI, Steve Burd at the New America Foundation, and so forth. The Hill was, naturally, another target; there, I reached out to individuals, and now have working relationships with Moira Lenehan, the Higher Education Staffer in Senator Sherrod Brown’s Office and Mr. Luke Swarthout, the Senior Education Advisor to the Chairman of the U.S. Senate's Health, Education, Labor and Pensions (HELP) Committee, Tom Harkin. Since August 2009 I have and continue to advocate for the thousands of people with whom I’ve been in touch and all for the same reasons: they are struggling or unable to pay off their student loan debts. In addition, I am an affiliated partner of SponsorChange.org and United Professionals. All of these professional relationships serve to raise awareness about the millions of people who are struggling to pay off their student loans, or even worse have defaulted and therefore rick falling off societal grid.
I have been in touch with thousands of student loan debtors, and the number of desperate individuals increases each week. My Facebook page is dedicated entirely to the student lending crisis, and I make a point to talk with individuals there (via Facebook chat) who have questions about their student loan debt. In many instances I have even spoken by phone with individuals who are struggling. I have also created a Facebook Support Group called, “The Support Group for the Indentured Educated Class,” and have successfully recruited State Support Leaders from across the U.S. Although the group was created just a few months ago, it has nearly 600 supporters, and newcomers join it on a daily basis. Many of these people participate in letter writing campaigns to the White House, the last of which took place on May 24th, 2010. In fact many of the volunteers were able to recruit their parents to join in on this writing campaign. (We sent letters to Mr. Roberto Rodriguez, who serves in the White House Domestic Policy Council as Special Assistant to President Obama for Education, Secretary Arne Duncan, Undersecretary Robert Shireman, and so forth).
Those with whom I’m in contact on a frequent basis, however, represent an infinitesimal percentage of individuals who are falling off the societal grid as a result of owing student loan debt. Many of these individuals have loans that are in forbearance or deferment, and are therefore racking up mountains of debt because of the interest rates affixed to them when placed in these categories. Indeed, there are hundreds of thousands, if not millions, of people who are already in default, and many more who are fast heading in that direction.
But what exactly are the causes for this student lending crisis? First, the student lending industry is a vast, complex system that includes many players (student borrowers, the U.S. Government, the Department of Education, the private sector, and the entire student lending industry, Nelnet and Sallie Mae being the most notable). Due to the complexity of this system, however, the following discussion will address specific problem regarding current borrowers. At this point, at least in my view and in that of my readers, there seems to be very little that is being done to help these individuals, which raises an important question: Why are current borrowers being ignored by the Obama Administration and, even more specifically, the Department of Education?
Given the severity of this situation, this is neither the time nor the place to point fingers at either institutions or specific individuals. While my work on Education Matters and at SponsorChange’s Philanthroteer focus on those sorts of critiques, I am reaching out in a way that I hope will lead to actual results. Today it is my sincere hope that the panel, particularly Mr. Shireman, and the Rainbow PUSH Coalition will consider my suggestions for short-term and long-term solutions to the student lending crisis. Indeed, if the Rev. Jesse Jackson and the Rainbow PUSH Coalition wish to make a difference in helping student loan debtors, they ought to shift their attention toward current borrowers. As one woman who’s on the verge of defaulting told me a few months ago, “Cryn, if it weren’t for you, I don’t know where I’d be right now.” This statement has been echoed time and time again from student debtors. They shouldn’t have to feel that way. They shouldn’t have to feel that I am the only person who is advocating for or listening to them. One thing is certain: instead of alienating these hard-working U.S. citizens, it is time that we come up with solutions to help current borrowers and take drastic steps to end this crisis.
Gauging the Severity of the Student Lending Crisis
But just how severe is the student lending crisis? If one were to carry out a cursory search at the New York Times (NYT), the Wall Street Journal (WSJ), or other major news outlets, s/he would be hard pressed to find much evidence of anything related to student loan reform, let alone a full-blown crisis. Prior to a recent article in the NYT by Ron Lieber, the major news outlets had really not covered this issue, and the few pieces that have been published online have essentially allowed readers to place the blame on the debtors. This blame is one of the reasons I am urging the Administration to take a stand on behalf of student debtors (I’ll elaborate more on this point in final section on short-term and long-term solutions). So, it was with great relief to see that the Times had finally written a noteworthy piece about student loan debt. Even though I applaud Mr. Lieber’s work, its publication is far from timely. (Incidentally, the Washington Post has failed entirely to write any articles about student loan reform). Although there is a dearth of articles by major news outlets on the subject, there is more than enough evidence to illustrate the fundamental problems of this industry, and how it has been allowed to – thanks to the fact that it has never been regulated – operate in such a way that can best be described as “legalized loan sharking.” For the purposes of brevity, here is a short list of some startling statistics which illustrate how the student lending crisis is not only brewing, but already affecting and destroying millions of Americans’ lives:
(a) In the prior academic year alone (2009-2010) over 6.9 million students borrowed money for their education.
(b) There was 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 2008.
(c) Average debts for graduating seniors increased by 24% from 2004 to 2008, therefore, rising from $18,650 to $20,200.
(d) Those who receive Pell Grants – these are individuals who come from families who earn less than $50,000 a year – will borrow more than others. In fact, 87% of 2008 graduating seniors who had been given a Pell Grant at one time or another had taken out student loans.
(e) Two-thirds of college student borrow for their education.
(f) On May 26, 2010, Tim Ranzetta recently noted, “Sallie Mae executives [indicated] in an investor meeting that of the $6 billion in non-traditional private student loans (euphemism for subprime loans), they projected 40% would default [my emphasis].”
It should be noted again that the student lending industry is a highly complicated system, and the institutional and individuals relationships within it are inextricably intertwined, thus making it a challenge to focus on relevant and specific problems related to the student lending crisis. Since my work has been on issues surrounding current borrowers, I argue that they are the ones who deserve immediate attention. Moreover, I think it is highly problematic to divide groups into categories such as for-profit versus non-profit schools, or individuals who only have federal loans in contradistinction to those who have private loans, or dividing those who are undergrads with debt versus those who are graduate student with debt. While I understand the rationale for making such distinctions at times (analyzing data, making sense of student loans for a non-specialist audience, etc.), that can be (and, in fact, has been wielded against student loan debtors. Many current borrowers with whom I’m in touch are quite aware of how this data is used to distort their difficult financial circumstances. Little is being done to help these borrowers, and too much emphasis is being placed on prospective ones.
With the recent passage of legislation for prospective borrowers (SAFRA), it is time to turn towards helping those who are current borrowers. In addition, the student lending crisis is an inter-generational problem, and that means that the solutions arrived at today will affect the millions of young Americans who might someday find themselves in a position to pursue higher education. Indeed, if we do not deal with the student loan debt burden of current borrowers, we will be leaving behind a volume of unresolved debt to future generations.
This short-list of statistics demonstrates the overwhelming sociological problem that the U.S. is facing as a result of the way in which higher education is financed. But even more powerful are the hundreds and hundreds of stories that individuals debtors have shared with me over the past year and a half. Their testimonials provide insight into the human element of the student lending crisis. Indeed, these individual voices provide us with deeper insights into how the crisis is destroying people’s lives.
Stay tuned for the first section from "Part II: Testimonials"
Senin, 14 Juni 2010
"Plight of Current Borrowers: An Appeal for Immediate Relief"
Many of you expressed an interest in reading the paper that I submitted to the Rev. Jesse Jackson's and the Rainbow Push Coalition's 39th Conference. I was invited to be a panelist at the Student Town Hall Meeting. The key note speaker was Deputy Undersecretary of the U.S. Department of Education Robert Shireman. Mr. Shireman is the founder of TICAS.org, an organization with whom I have developed professional relationships and respect greatly. Moreover, Edie Irons - the Director of Communications at TICAS - was on the panel.
I regret not being there to meet her in person, as well as Deputy Undersecretary Shireman among others (including, of course, Raymar Hampshire of SponsorChange.org).
In any event, parts of my paper were read out loud or mentioned by Dr. Jo Ann Roberts at the beginning of the discussion, and then the paper was distributed to the panelists.
I want to thank those again whose stories were included in the "Testimonials" section, and also those who are interested in reading the paper in its entirety. It's nearly 25-pages long, so I'll start with a short post, and first provide all of you with the Overview:
The next installment will be the first part of the Introduction.
Stay tuned!
Behind that pretty "All American Dream" home, the piggy bank doesn't jingle and the home is occupied by generations of indentured educated citizens. Look closely enough, one will discover peeling paint, and also hear whispers that go like this: "There isn't enough money. There isn't enough money . . . " It's quiet, but it can be heard in every room of the house.
I regret not being there to meet her in person, as well as Deputy Undersecretary Shireman among others (including, of course, Raymar Hampshire of SponsorChange.org).
In any event, parts of my paper were read out loud or mentioned by Dr. Jo Ann Roberts at the beginning of the discussion, and then the paper was distributed to the panelists.
I want to thank those again whose stories were included in the "Testimonials" section, and also those who are interested in reading the paper in its entirety. It's nearly 25-pages long, so I'll start with a short post, and first provide all of you with the Overview:
Introduction
· What exactly are the causes for this student lending crisis? First, the student lending industry is a vast, complex system that includes many players (student borrowers, the U.S. Government, the Department of Education, the private sector, and the entire student lending industry, Nelnet and Sallie Mae being the most notable). Due to the complexity of this system, however, the following discussion will address specific problem regarding current borrowers.
· Why are current borrowers being ignored by the Obama Administration and, even more specifically, the Department of Education?
· There is more than enough evidence to illustrate the fundamental problems of this industry, and how it has been allowed to – thanks to the fact that it has never been regulated – operate in a way that can best be described as “legalized loan sharking.”
Testimonials
· When these testimonials are situated in the history of student lending industry (from the industry’s emergence as a Government entity in the mid-1960s, to its eventual privatization in the 1990s, up to the present), the scope and depth of the crisis is alarming.
· While most debtors live in the U.S., many indentured educated citizens now live worlds away from home (many have left the U.S. for wages that allow them to escape that dreadful and risky “paycheck-to-paycheck” type of living). They are all united, however, in being indentured – and often for the rest of their lives – to their respective student lenders.
· It is clear that indentured educated citizens feel they are (a) useless to society; (b) believe and have been made to feel that they are second class citizens; and, worst of all, (c) hopeless.
Providing Relief (Short-Term and Long-Term Solutions)
· There are a variety of ways by which the Administration, Congress, and the Department of Education could be helping current borrowers now and in the future.
· SAFRA has been passed and the next issue is the Department of Education’s attempt prospectively to limit borrowing at for-profits institutions through rulemaking. But that should not be the only focus. Although I applaud the consumer groups’ effort (POSD, PIRG, USSA, NACAC, etc.), their strategy is not as direct as it could be. They should have said the next big priority is to help current borrowers who have been saddled with debt, drawn attention to the lives currently being ruined, and from that moved on to prospective solutions armed with survey data and case studies showing how bad the debt/default situation is right now.
· Although IBR has been implemented to help current borrowers, and it is a good start, it has fallen short in a number of ways: (a) it does not cover private loans; (b) if a married couple files their taxes jointly, and both have student loan debt, both incomes are considered as one, but only one’s person debt load is taken into account, resulting in inflated payments that are impractical for these couples with high shared debt loads; most importantly, it does nothing to assist people in default. The number of people who will default is expected to rise, so it is imperative that a program like IBR or something else will help them get out of this devastating situation. If these shortcomings were to be addressed, this good program could become a major part of helping – most likely – millions of people recover from default and dramatically improving their lives.
Sabtu, 12 Juni 2010
Who wants a sneak peek?
After editing several drafts, my paper, "The Plight of Current Borrowers: An Appeal For Immediate Relief," has been sent to the Rev. Jesse Jackson and the Rainbow PUSH Coalition!
I was asked to include an overview of the work along with the entire paper (it's a total of 25 pages or thereabouts), and the former will be presented out loud tomorrow. In addition, copies will be distributed to the panel and to those attending the discussion
I also sent it to some key policy analysts, and already know that one of them will be reading it before they attend the conference tomorrow. That was great to hear.
I am very excited about this paper, and think that the best part of it comes from you: the voices of the indentured educated class. Thank you so much again for letting me include your stories in this paper. I will be including many more of your voices in my book, and I've already received so many willing volunteers who will be a major part of that manuscript.
Let me also publicly thank the Rev. Jesse Jackson and the Rainbow PUSH Coalition for inviting me to be a panelist on a panel discussing student loan reform. While I truly regret not being able to attend, I am confident that I will cross paths with good people who are committed to truly solving the student lending crisis in the future.
With the news that this paper is completed, who's interested in a sneak peek? (Please post your answers below and not on my Facebook). Thanks!
I was asked to include an overview of the work along with the entire paper (it's a total of 25 pages or thereabouts), and the former will be presented out loud tomorrow. In addition, copies will be distributed to the panel and to those attending the discussion
I also sent it to some key policy analysts, and already know that one of them will be reading it before they attend the conference tomorrow. That was great to hear.
I am very excited about this paper, and think that the best part of it comes from you: the voices of the indentured educated class. Thank you so much again for letting me include your stories in this paper. I will be including many more of your voices in my book, and I've already received so many willing volunteers who will be a major part of that manuscript.
Let me also publicly thank the Rev. Jesse Jackson and the Rainbow PUSH Coalition for inviting me to be a panelist on a panel discussing student loan reform. While I truly regret not being able to attend, I am confident that I will cross paths with good people who are committed to truly solving the student lending crisis in the future.
With the news that this paper is completed, who's interested in a sneak peek? (Please post your answers below and not on my Facebook). Thanks!
Senin, 07 Juni 2010
Rainbow PUSH and Citizenship Education Fund 39th Annual Conference - Register Now! (June 12 - 16)
I am finishing up my paper for the upcoming Rainbow PUSH and Citizenship Education Fund Conference.
This important event will take place June 12-June 16.
Here are the details for registering:
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| More details can be found at the Rainbow PUSH Coalition's site here. | |||||||||||
Jumat, 04 Juni 2010
In your words: A grandson's anguish
Advertising Support: CSN Stores
Many of you are animal lovers, and I was contacted by a store called CSN Stores to promote their pet products on my blog (they like my content and they are aware that I receive a lot of traffic). In posting a small advertisement for them, one of you will receive a $60 gift certificate to purchase pet products on their site or anything else for that matter. They sell all sorts of things, including beds.
On that note, I want all of you to be aware that this money will be stashed away with the donations that many of you have sent to me for my advocacy work. I appreciate your continued support, whether it's through small donations or volunteering. In fact, that latter means far more to me, because I'm happy to carry the burden of expenses with my own job as a teacher.
Frequent readers of Education Matters are aware that I prefer to post testimonials (here's the most recent one that I posted, but there are many more). In fact, I am currently working on a book that will include these stories. Moreover, my paper that I'll be submitting to the Rev. Jesse Jackson and the Rainbow PUSH Coalition for the upcoming June 13th convention includes testimonials. For those unaware, I was extended an invitation by the Rev. Jackson to be a panelist on a panel to discuss student loan reform. Robert Shireman will be on that panel.
However, I reside in Seoul, South Korea, so I will - unfortunately - be unable to attend in person. But the paper should suffice.
Your voices demonstrate the destructiveness of the student lending crisis, and provide us with very intimate and personal accounts of how this industry is ruining the lives of millions of people in the U.S. I already know of at least one marriage that has fallen apart as a result of one partner owing so much in student loans. Then there are the stories from desperate mothers who can't help their children. Of course, there are also those of you who are recent grads. Like the ones I've just mentioned above, you've told me that you can't make ends meet either, because you can't find a job. All of these stories illustrate that this crisis is an inter-generational problem.
It is important to share these stories publicly, and that's why I continually ask for your testimonials.
The latest tale is from someone who recently posted on my blog about AES's harassing tactics.
A.J.explains [in his own words]:
I came across your blog while searching for complaints against AES student loans. I graduated in 08, my 85-year-old grandmother co-signed the loan, and now I am wishing I had never done it.
My grandmother is retired, and gets social security checks... we sent in the paper work to show that neither one of us was working. After exceeding my FORBEARANCE time... I was finally told my only option was the graduate repayment. So payments will be $50 a month instead of $238. OK great... but in the meantime I paid them [$]70 that was all I could afford. Now my bill is $168 plus the [$]50 dollars for next month! That puts me back where I started.
Now the phone calls, and the letters . . . they called my granny and told her that, she needs to make a payment by the 4th. She told them she was retired, and the lady said, “Well mam, you signed the paperwork.” The last time I spoke with them, I recorded the convo [sic]. The girl basically said there was nothing I could do but pay. She put in my account, that I did not have a job, and my concerns with them calling my grandmother, and my concerns about her health. Then the girl tells me, well, you don’t have to worry about garnishing your grandmother’s checks until after 30days . . . Then she continued to tell me how they were going to harass me. So I say to her, “Look Rebecca . . . I’m going to have to pay AES for the rest of my life. Why can’t you drop the [$]168 and let me deal with the [$]50 . . . I mean hell . . . help me, so I can help you get your money."
I am so frustrated and stressed. Between them, and finding a job... I feel like I will never surface—I will continue sinking in this black abyss called the ‘American Dream.’ I don’t understand. I don’t want to answer their calls, because this will get me no where. I’m 28 and have extreme anxiety, and stress over this.
Please include my story and good luck!
Let's hope that for A.J. and his grandmother's sake, those who can actually help student loan debtors (i.e., the Department of Education, the White House, policy staffers on the Hill, etc., etc.) are listening to these stories and reconsidering the way in which lobbyists for the student lending industry spin this tale. For our voices tell a different, much darker story about the industry. The evidence continues to grow each day, all of which demonstrates that the lenders (overall) are nothing but a bunch of loan sharks whose dirty tactics have been legalized by the U.S. Government. So, it's time to stop for a moment and think about the ramifications of this crisis. Sadly, it's just one example out of many that demonstrate how the U.S. Government has become corporatized and thus lost its ability to truly listen to those who ought to be heard: U.S. citizens (look at the recent disaster in the Gulf).
Many of you are animal lovers, and I was contacted by a store called CSN Stores to promote their pet products on my blog (they like my content and they are aware that I receive a lot of traffic). In posting a small advertisement for them, one of you will receive a $60 gift certificate to purchase pet products on their site or anything else for that matter. They sell all sorts of things, including beds.
On that note, I want all of you to be aware that this money will be stashed away with the donations that many of you have sent to me for my advocacy work. I appreciate your continued support, whether it's through small donations or volunteering. In fact, that latter means far more to me, because I'm happy to carry the burden of expenses with my own job as a teacher.
Frequent readers of Education Matters are aware that I prefer to post testimonials (here's the most recent one that I posted, but there are many more). In fact, I am currently working on a book that will include these stories. Moreover, my paper that I'll be submitting to the Rev. Jesse Jackson and the Rainbow PUSH Coalition for the upcoming June 13th convention includes testimonials. For those unaware, I was extended an invitation by the Rev. Jackson to be a panelist on a panel to discuss student loan reform. Robert Shireman will be on that panel.
However, I reside in Seoul, South Korea, so I will - unfortunately - be unable to attend in person. But the paper should suffice.
Your voices demonstrate the destructiveness of the student lending crisis, and provide us with very intimate and personal accounts of how this industry is ruining the lives of millions of people in the U.S. I already know of at least one marriage that has fallen apart as a result of one partner owing so much in student loans. Then there are the stories from desperate mothers who can't help their children. Of course, there are also those of you who are recent grads. Like the ones I've just mentioned above, you've told me that you can't make ends meet either, because you can't find a job. All of these stories illustrate that this crisis is an inter-generational problem.
It is important to share these stories publicly, and that's why I continually ask for your testimonials.
The latest tale is from someone who recently posted on my blog about AES's harassing tactics.
A.J.explains [in his own words]:
I came across your blog while searching for complaints against AES student loans. I graduated in 08, my 85-year-old grandmother co-signed the loan, and now I am wishing I had never done it.
My grandmother is retired, and gets social security checks... we sent in the paper work to show that neither one of us was working. After exceeding my FORBEARANCE time... I was finally told my only option was the graduate repayment. So payments will be $50 a month instead of $238. OK great... but in the meantime I paid them [$]70 that was all I could afford. Now my bill is $168 plus the [$]50 dollars for next month! That puts me back where I started.
Now the phone calls, and the letters . . . they called my granny and told her that, she needs to make a payment by the 4th. She told them she was retired, and the lady said, “Well mam, you signed the paperwork.” The last time I spoke with them, I recorded the convo [sic]. The girl basically said there was nothing I could do but pay. She put in my account, that I did not have a job, and my concerns with them calling my grandmother, and my concerns about her health. Then the girl tells me, well, you don’t have to worry about garnishing your grandmother’s checks until after 30days . . . Then she continued to tell me how they were going to harass me. So I say to her, “Look Rebecca . . . I’m going to have to pay AES for the rest of my life. Why can’t you drop the [$]168 and let me deal with the [$]50 . . . I mean hell . . . help me, so I can help you get your money."
I am so frustrated and stressed. Between them, and finding a job... I feel like I will never surface—I will continue sinking in this black abyss called the ‘American Dream.’ I don’t understand. I don’t want to answer their calls, because this will get me no where. I’m 28 and have extreme anxiety, and stress over this.
Please include my story and good luck!
Let's hope that for A.J. and his grandmother's sake, those who can actually help student loan debtors (i.e., the Department of Education, the White House, policy staffers on the Hill, etc., etc.) are listening to these stories and reconsidering the way in which lobbyists for the student lending industry spin this tale. For our voices tell a different, much darker story about the industry. The evidence continues to grow each day, all of which demonstrates that the lenders (overall) are nothing but a bunch of loan sharks whose dirty tactics have been legalized by the U.S. Government. So, it's time to stop for a moment and think about the ramifications of this crisis. Sadly, it's just one example out of many that demonstrate how the U.S. Government has become corporatized and thus lost its ability to truly listen to those who ought to be heard: U.S. citizens (look at the recent disaster in the Gulf).
Loan Sharks like AES won't even leave old grannies be.
Selasa, 01 Juni 2010
Quick Post: Writing Paper For The Upcoming Convention Sponsored By The Rev. Jesse Jackson And The Rainbow Push Coalition
Since I am teaching in South Korea (you can read all about it, too, on my new blog entitled, "South of North Korea) I will be unable to attend the June 13th convention to which I was invited to be a panelist with Robert Shireman and others sponsored by the Rev. Jesse Jackson and The Rainbow Push Coalition, I am in the midst of drafting a paper instead. The working title is "The Plight Of Current Borrowers: An Appeal For Immediate Relief," and I will be through with a 15-page draft by today. That mean I'll be sending it off within the next 2-3 days.
The paper is a critique on the way in which the current Administration has been focused on "prospective borrowers," rather than addressing the student lending crisis head-on and dealing with those who are currently drowning in student loan debt.
I wanted to keep all of my readers abreast, and let them know that I am going to be at this convention on paper, which that means that your voices will be represented, too.
Here's the skeletal outline for the work:
(a) Part I: Introduction/Gauging the Severity of the Student Lending Crisis - brief overview about the student lending crisis;
(b) Part II: Testimonials - I will include some of your stories (anonymously of course) in order to illustrate the specific problem I'll be discussing, i.e., the lack of focus on current borrowers and their struggles to pay off their student loan debt;
(c) Part III: Solutions - a two-part section that will include things for immediate relief and suggestions for long-term problems related to the student lending crisis
Moreover, I will be writing an update about our latest writing campaign to Mr. Roberto Rodriguez, et al. I was absolutely thrilled to open my inbox and see so many letters from volunteers. That's more than just heartening, because it shows that people are willing to get even more involved. All right, I need to return to my draft. Stay tuned for an update on the letter writing campaign!
The paper is a critique on the way in which the current Administration has been focused on "prospective borrowers," rather than addressing the student lending crisis head-on and dealing with those who are currently drowning in student loan debt.
I wanted to keep all of my readers abreast, and let them know that I am going to be at this convention on paper, which that means that your voices will be represented, too.
Here's the skeletal outline for the work:
(a) Part I: Introduction/Gauging the Severity of the Student Lending Crisis - brief overview about the student lending crisis;
(b) Part II: Testimonials - I will include some of your stories (anonymously of course) in order to illustrate the specific problem I'll be discussing, i.e., the lack of focus on current borrowers and their struggles to pay off their student loan debt;
(c) Part III: Solutions - a two-part section that will include things for immediate relief and suggestions for long-term problems related to the student lending crisis
Moreover, I will be writing an update about our latest writing campaign to Mr. Roberto Rodriguez, et al. I was absolutely thrilled to open my inbox and see so many letters from volunteers. That's more than just heartening, because it shows that people are willing to get even more involved. All right, I need to return to my draft. Stay tuned for an update on the letter writing campaign!
Let's hope that the Rev. Jesse Jackson can help us make an appeal to President Obama
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