Side Note: This response is the first of many to the absurd remarks about the uselessness of education in the social sciences and/or the humanities. Stay tuned for more reasons why an education in the humanities and the social sciences matters.
Sabtu, 31 Juli 2010
Civil Rights - THIS IS ONE REASON WHY AN EDUCATION IN THE HUMANITIES/SOCIAL SCIENCES MATTERS
Let's take a look at the history of the civil rights movement to answer this question.
Side Note: This response is the first of many to the absurd remarks about the uselessness of education in the social sciences and/or the humanities. Stay tuned for more reasons why an education in the humanities and the social sciences matters.
Side Note: This response is the first of many to the absurd remarks about the uselessness of education in the social sciences and/or the humanities. Stay tuned for more reasons why an education in the humanities and the social sciences matters.
Rabu, 28 Juli 2010
Question
Did you pursue an education only for a future return, i.e., was it merely an investment and nothing beyond that?
Minggu, 25 Juli 2010
Recent Chronicle Piece on Student Loan Default Rates By Kelly Field
It's no surprise to me that Ms. Field has discovered that defaults on student loans are much higher than the federal government has suggested. In her recent report published in The Chronicle of Higher Education, Ms. Field writes, "The share of borrowers who default on their student loans is bigger than the federal government's short-term data suggest, with thousands more facing damaged credit histories and millions more tax dollars being lost in the long run."
NPR's Robert Siegel also spoke to Ms. Field about her recent findings. In that interview, Ms. Field stated that she was "somewhat surprised" by the numbers. But here's my question: why is Ms. Field slightly surprised? It's not the least bit surprising. I've been advocating for the indentured educated class for over a year, and it's quite clear to me that millions of Americans are suffering. Moreover, you have thousands and thousands of Americans who are student loan refugees, living across the globe and therefore not contributing to the well-being and growth of the U.S. economy and so forth. That's just one of many hidden tragedies related to the student lending crisis. There's a name for this one, too. It's called "brain drain." (Of course, I refuse to accept that this larger problem - the crisis itself - will simply remain hidden and therefore a secret. I will continue to fight on behalf of student borrowers until the day I die. Indeed, I will continue to raise awareness in order to convince politicians and policy makers to do something drastic in order to help the indentured educated class).
While it was not the focus of her piece, Ms. Field could have at least mentioned co-signers on these loans. No one has taken co-signers into account. If that data were to be added to these types of stories, the student loan default rates would be far more devastating. Indeed, when one considers the number of co-signers on these loans (I don't think there's even any data that can show us these numbers), one realizes how this problem is truly of epic proportions. That raises two questions: what are the numbers really at, i.e., how many millions and millions of people are being negatively affected by the student lending crisis? In addition, how much money is the taxpayer losing as a result of these individuals who are defaulting on their student loans?
On the topic of how it is costing other Americans, Ms. Field also brings up the point about how the student lending crisis is costing taxpayers money. In one of my recent posts, I also mentioned this issue of cost. It's commendable that Ms. Field discusses this issue as well, but we desperately need more coverage on the student lending crisis as a whole. For the crisis is not on its way, but rather the crisis has arrived.
NPR's Robert Siegel also spoke to Ms. Field about her recent findings. In that interview, Ms. Field stated that she was "somewhat surprised" by the numbers. But here's my question: why is Ms. Field slightly surprised? It's not the least bit surprising. I've been advocating for the indentured educated class for over a year, and it's quite clear to me that millions of Americans are suffering. Moreover, you have thousands and thousands of Americans who are student loan refugees, living across the globe and therefore not contributing to the well-being and growth of the U.S. economy and so forth. That's just one of many hidden tragedies related to the student lending crisis. There's a name for this one, too. It's called "brain drain." (Of course, I refuse to accept that this larger problem - the crisis itself - will simply remain hidden and therefore a secret. I will continue to fight on behalf of student borrowers until the day I die. Indeed, I will continue to raise awareness in order to convince politicians and policy makers to do something drastic in order to help the indentured educated class).
While it was not the focus of her piece, Ms. Field could have at least mentioned co-signers on these loans. No one has taken co-signers into account. If that data were to be added to these types of stories, the student loan default rates would be far more devastating. Indeed, when one considers the number of co-signers on these loans (I don't think there's even any data that can show us these numbers), one realizes how this problem is truly of epic proportions. That raises two questions: what are the numbers really at, i.e., how many millions and millions of people are being negatively affected by the student lending crisis? In addition, how much money is the taxpayer losing as a result of these individuals who are defaulting on their student loans?
On the topic of how it is costing other Americans, Ms. Field also brings up the point about how the student lending crisis is costing taxpayers money. In one of my recent posts, I also mentioned this issue of cost. It's commendable that Ms. Field discusses this issue as well, but we desperately need more coverage on the student lending crisis as a whole. For the crisis is not on its way, but rather the crisis has arrived.
Stop pretending that the cards haven't fallen.
Selasa, 20 Juli 2010
Another Quote By The President
In response to my quote about education made by the President, one of my readers, Ms. H, wrote:
"We have an obligation and a responsibility to be investing in our students and our schools. We must make sure that people who have the grades, the desire and the will, but not the money, can still get the best education possible." - Barack Obama
She added under this quote:
Mr. President, with the deepest respect, I pushed education and my children got higher degrees.They both are in so much debt! My son is called 15 times a day by Sallie Mae and my daughter is done [with her] residency. . . praying each day her loans will not come due before her 5 years is done. Will they ever have kids, get married, or have a moment of peace? I can't tell you about the shame, betrayal, surreal, fear, and lack of hope. We need you to fix this. . . Please.
"We have an obligation and a responsibility to be investing in our students and our schools. We must make sure that people who have the grades, the desire and the will, but not the money, can still get the best education possible." - Barack Obama
She added under this quote:
Mr. President, with the deepest respect, I pushed education and my children got higher degrees.They both are in so much debt! My son is called 15 times a day by Sallie Mae and my daughter is done [with her] residency. . . praying each day her loans will not come due before her 5 years is done. Will they ever have kids, get married, or have a moment of peace? I can't tell you about the shame, betrayal, surreal, fear, and lack of hope. We need you to fix this. . . Please.
Weekly Quote About Education By President Obama
"We have an obligation and a responsibility to be investing in our students and our schools. We must make sure that people who have the grades, the desire and the will, but not the money, can still get the best education possible." - Barack Obama
Sublime quote. Beautifully said. I'm dead serious.
But are we really investing in our students and our schools, when those who control the funds for higher education are the lenders and the colleges and universities, Mr. President?
Your higher education staffer doesn't seem to be too invested in responding to people who sought education to improve themselves and the United States of America.
Sublime quote. Beautifully said. I'm dead serious.
But are we really investing in our students and our schools, when those who control the funds for higher education are the lenders and the colleges and universities, Mr. President?
Your higher education staffer doesn't seem to be too invested in responding to people who sought education to improve themselves and the United States of America.
Senin, 19 Juli 2010
Bitter Taste, Bad Letter
The State Support Leader from Kentucky, Gail Tolson, let me know that she had received an enormously disappointing letter from the White House recently. Ms. Tolson wrote to the White House about the student lending crisis, and has urged them to think about helping out current borrowers. Apparently, this type of response is as good as it gets. The letter is dated July 17, 2010, and here's what it said [truncated version]:
Dear Friend:
Thank you for writing. Expanding access to higher education is critical to preserving the American Dream and securing our future, and I appreciate your perspective.
To make college more affordable for millions of middle-class Americans for whom the cost of higher education has become an unbearable burden, my Administration is expanding Federal Pell Grants for students, increasing them to keep pace with inflation in the coming years, and putting the program on strong financial footing. In total, we are doubling funding for the Federal Pell Grant program to help students who depend on it.
To make sure our students do not go broke just because they chose to college, we are making it easier for graduates to afford their student loan payments. Today, about two in three graduates take out loans for college. The average student ends up with more than $23,000 in debt. When this change takes effect in 2014, we will cap a graduate's annual student loan repayments at 10 percent of his or her income.
I'll pause here for a moment. While I have my critiques of the expansion of the Federal Pell Grant, I'll won't go into analysis for the reasons why. I'm more frustrated at this point by two things. First off, why won't these people get off this hogwash, this so-called "average student loan debt" of $23,000? This number has no bearing on the real problem, and it's aggravating to see it regurgitated over and over again. President Obama's staff should be savvy enough to realize how problematic that number is. What bearing does that number have to a person who is drowning in student loan debt? Second, why aren't they talking about solutions for current borrowers? Sadly, they continue to dance around that problem. The letter continues to discuss prospective borrowers and the wonderful future they can look forward to:
To help an additional five million Americans earn degrees and certificates over the next decade, we are revitalizing programming at our community colleges - the career pathway for for dislocated workers and working families across this country. These schools are centers of learning, where students young and old can get the skills and technical training they need for for the jobs of today and tomorrow.
I'll interrupt President Obama's letter writer (who cut out some of the worst paragraphs for this response letter), and say this: uh, what jobs are you talking about? Are you aware of what's happening in the U.S.? Are you aware of what Krugman is writing? If you aren't, check out his recent article about the Great Depression number three - THERE ARE NO JOBS. We're facing cataclysmic problems with employment, and this is the best you can do?
I'll leave the letter at that. I am just as disappointed by this letter as Ms. Tolson. It says absolutely nothing about people who are currently drowning in debt. Indeed, Pres. Obama's primary higher education staffer - Roberto Rodriguez - has failed to respond to our countless letters. I've also sent him email after email after email, imploring him, begging him, to write me back. There is nothing but silence. Here's the last email I wrote to him on July 8, 2010:
Dear Mr. Rodriguez:
I have made countless attempts to write to you at this email address. When I spoke to you directly on several phone calls with the White House in early February, we were all told that this email was the best way to reach you.
I am really at a loss to understand why you have failed to respond to my letters. Moreover, many of my readers - those who are part of the indentured educated class - have sent you several letters too. This is one of the many ways the Administration is ignoring the base of people who put them into office. In fact, I am fast losing hope in the policies you're implementing - they're tepid at best. So you are aware, right-wing think tanks like CCAP have picked up my works on Education Matters. Many of my readers are infuriated by your lack of response to their struggles to pay off their student loans, and these - again - are the people who voted Pres. Obama into office.
If you continue to our ignore our entreaties, I can only assume that the White House only care about the same moneyed elites that were privileged under the previous Administration, and my work will reflect that. Perhaps you and others have become too embedded within the comforts of the beltway - times are desperate, sir, and American citizens, especially those who have sought higher education and are now drowning in student loan debt, deserve a response.
Just so you are aware, my readership on Education Matters jumps dramatically each day.
The latest post is worth reading. It's a testimonial from a mother who has a daughter who nearly died from heart problems and recently received a kidney from her sister. This family is being punished for pursuing higher education, and the mother feels guilty for owning a cell phone. It's highly illuminating. The piece is entitled, "Destroying The Educated American Family, One Member At A Time." Here's the link: http://alleducationmatters.
Thank you in advance for your response.
Respectfully,
Ms. C. Cryn Johannsen
Mr. Rodriguez is making an F at the moment. There is absolutely no reason why he cannot respond to my email requests. He owes it to all of us.
Dear Friend:
Thank you for writing. Expanding access to higher education is critical to preserving the American Dream and securing our future, and I appreciate your perspective.
To make college more affordable for millions of middle-class Americans for whom the cost of higher education has become an unbearable burden, my Administration is expanding Federal Pell Grants for students, increasing them to keep pace with inflation in the coming years, and putting the program on strong financial footing. In total, we are doubling funding for the Federal Pell Grant program to help students who depend on it.
To make sure our students do not go broke just because they chose to college, we are making it easier for graduates to afford their student loan payments. Today, about two in three graduates take out loans for college. The average student ends up with more than $23,000 in debt. When this change takes effect in 2014, we will cap a graduate's annual student loan repayments at 10 percent of his or her income.
I'll pause here for a moment. While I have my critiques of the expansion of the Federal Pell Grant, I'll won't go into analysis for the reasons why. I'm more frustrated at this point by two things. First off, why won't these people get off this hogwash, this so-called "average student loan debt" of $23,000? This number has no bearing on the real problem, and it's aggravating to see it regurgitated over and over again. President Obama's staff should be savvy enough to realize how problematic that number is. What bearing does that number have to a person who is drowning in student loan debt? Second, why aren't they talking about solutions for current borrowers? Sadly, they continue to dance around that problem. The letter continues to discuss prospective borrowers and the wonderful future they can look forward to:
To help an additional five million Americans earn degrees and certificates over the next decade, we are revitalizing programming at our community colleges - the career pathway for for dislocated workers and working families across this country. These schools are centers of learning, where students young and old can get the skills and technical training they need for for the jobs of today and tomorrow.
I'll interrupt President Obama's letter writer (who cut out some of the worst paragraphs for this response letter), and say this: uh, what jobs are you talking about? Are you aware of what's happening in the U.S.? Are you aware of what Krugman is writing? If you aren't, check out his recent article about the Great Depression number three - THERE ARE NO JOBS. We're facing cataclysmic problems with employment, and this is the best you can do?
I'll leave the letter at that. I am just as disappointed by this letter as Ms. Tolson. It says absolutely nothing about people who are currently drowning in debt. Indeed, Pres. Obama's primary higher education staffer - Roberto Rodriguez - has failed to respond to our countless letters. I've also sent him email after email after email, imploring him, begging him, to write me back. There is nothing but silence. Here's the last email I wrote to him on July 8, 2010:
Dear Mr. Rodriguez:
I have made countless attempts to write to you at this email address. When I spoke to you directly on several phone calls with the White House in early February, we were all told that this email was the best way to reach you.
I am really at a loss to understand why you have failed to respond to my letters. Moreover, many of my readers - those who are part of the indentured educated class - have sent you several letters too. This is one of the many ways the Administration is ignoring the base of people who put them into office. In fact, I am fast losing hope in the policies you're implementing - they're tepid at best. So you are aware, right-wing think tanks like CCAP have picked up my works on Education Matters. Many of my readers are infuriated by your lack of response to their struggles to pay off their student loans, and these - again - are the people who voted Pres. Obama into office.
If you continue to our ignore our entreaties, I can only assume that the White House only care about the same moneyed elites that were privileged under the previous Administration, and my work will reflect that. Perhaps you and others have become too embedded within the comforts of the beltway - times are desperate, sir, and American citizens, especially those who have sought higher education and are now drowning in student loan debt, deserve a response.
Just so you are aware, my readership on Education Matters jumps dramatically each day.
The latest post is worth reading. It's a testimonial from a mother who has a daughter who nearly died from heart problems and recently received a kidney from her sister. This family is being punished for pursuing higher education, and the mother feels guilty for owning a cell phone. It's highly illuminating. The piece is entitled, "Destroying The Educated American Family, One Member At A Time." Here's the link: http://alleducationmatters.
Thank you in advance for your response.
Respectfully,
Ms. C. Cryn Johannsen
Mr. Rodriguez is making an F at the moment. There is absolutely no reason why he cannot respond to my email requests. He owes it to all of us.
Rabu, 14 Juli 2010
Quick Post: Raising Important Questions
I'm going to begin a series of quick posts each week that pose important questions, and I hope that those in power will be open to responding. Here are a few that I have about the consolidation issue and problems I suspect are related to the Department of Education's refusal to help current borrowers:
-Why isn't the Department of Education doing anything about consolidation? There is strong evidence that suggests that it would save borrowers money and it would also save taxpayers money. Here's a great opportunity to help both parties, so why isn't the Dept. of Education moving on it? I am not aware of the scoring, but think it's safe to say that the savings could be enormous.
-We're not sure about the potential savings for borrowers and taxpayers, and that's why I ask this next question: how many old loans are out there, and how much could we be saving? (People in Washington only seem to care about saving money when it comes to their elections, so I'd like an answer to this question).
-Why does the Department of Education appear to be siding with lenders still? Is that because it is an institution that is just as broken and ineffectual as the S.E.C. (i.e., is it yet another case of the fox guarding the hen house, because that's how things seem to look these days in D.C. That at least would explains the callousness of people on the Hill)? That's really to say, is the Department of Education still filled to the brim with people that Bush put in there for the past 8 years? If that's the case, why hasn't the Obama Administration made an effort to clean it up?
-Why isn't the Department of Education doing anything about consolidation? There is strong evidence that suggests that it would save borrowers money and it would also save taxpayers money. Here's a great opportunity to help both parties, so why isn't the Dept. of Education moving on it? I am not aware of the scoring, but think it's safe to say that the savings could be enormous.
-We're not sure about the potential savings for borrowers and taxpayers, and that's why I ask this next question: how many old loans are out there, and how much could we be saving? (People in Washington only seem to care about saving money when it comes to their elections, so I'd like an answer to this question).
-Why does the Department of Education appear to be siding with lenders still? Is that because it is an institution that is just as broken and ineffectual as the S.E.C. (i.e., is it yet another case of the fox guarding the hen house, because that's how things seem to look these days in D.C. That at least would explains the callousness of people on the Hill)? That's really to say, is the Department of Education still filled to the brim with people that Bush put in there for the past 8 years? If that's the case, why hasn't the Obama Administration made an effort to clean it up?
Selasa, 13 Juli 2010
Notable Remarks - 7/8/10
Noteworthy remarks posted to my recent piece "Destroying The Educated Family, One Member At A Time:"
- Demosthenes of America said... The fact that there are so many stories like this is unconscionable to me. Once again, we are overflowing with "attorneys" but what can an attorney do? Represent them as an advocate against loan companies and debt collectors?
These are systemic, structural problems that can't be addressed on a case by case basis--what's needed is leadership and compassion from policymakers and our elected political leaders...but they have nothing but public scorn and spite for those on the receiving end of this "recession."
- Demosthenes of America (again wins a place this evening for exemplary comments): Absolutely. Every moment is a conscious choice. These problems are made by people, they can be solved by people.
My grandfather and his entire family were "okies," the people who had to flee the dust bowl and search for work. There have been several fascinating books written by environmental historians that detail how the Dust Bowl was not an Act of God--but the eventual outcome of specific policies and cultural practices in farming and land use that led to the severity of the conditions in the Dust Bowl.
The situation with the economy and the debt burden is no different. For anyone in a decision-making capacity to attribute the current situation solely to moral failings or bad personal decisions on the part of borrowers is out of their mind.
Every social justice movement in history has started somewhere. Just because improvements have been made in a society's laws and/or habits does not mean the underlying causes of discrimination, racism, etc. vanish.
These problems CAN be solved for the better. All it takes is political will. Or as Teddy Roosevelt said, "Blood, toil, sweat and tears."
-Anonymous wrote: You’re doing great work here. Don’t give in to that “multi-decade” “marathon” mentality. We’re the “on-demand” generation and can achieve results much sooner. Look how fast we can communicate around the world.
You’ve made the argument, and the emotional stories will create sympathy. However, if we expect to make any real progress, we have to come up with solutions. Here are my suggestions: (1) make student loan repayments contingent on income with the schools (not the taxpayers) taking the loss (this will create an incentive for schools to find reasonable employment for their graduates and/or limit enrollment in "worthless" programs), (2) start suing and revoking licenses/aid for schools that mislead or can't place graduates in suitable employment, (3) allow student loans to be discharged in bankruptcy after a specified time (e.g. 5 years after graduation) or number of unsuccessful legitimate attempts to gain suitable employment (why should you have to pay for something that you can't use and is thus defective?), (4) pass legislation prohibiting employment discrimination based on being educated or “overqualified,” (5) get organized and threaten to flee the country if some form of relief isn’t provided (if significant numbers leave, how many workers will be left to pay into Medicare and SS?) and (6) update the “Brother, can you spare a dime?” song for the Great Recession (e.g., “Obama, can you spare some change?”)
- Frank The Underemployed Professional said: These stories are just more anecdotal evidence that our nation needs real socialized medicine. Every other first world nation has it.
Our health care system is the most expensive and inefficient in the world, consuming a whopping 17% of GDP while leaving tens of millions of Americans uninsured or under-insured with tens of millions more living in sheer terror of losing their jobs and/or health coverage. We also have hundreds of thousands of medical bankruptcies every year. Also, our current system places a tremendous burden on businesses.
In contrast, nations with socialized medicine spend a far smaller percentage of their GDP on health care, have 100% coverage, have a more content populace, have almost no medical bankruptcies, and often have the same or more doctors per capita. Their businesses don't have to worry about health insurance benefit concerns. (However, they have far fewer wealthy insurance and for-profit hospital executives. I know, it's tragic.)
All of my personal experiences over the past decade have transformed me from an advocate of laissez-faire capitalism into an advocate of a mixed economy. Sadly, free market dogma and fear of socialism is so deeply-ingrained in this country that market forces will have to impoverish tens of millions more Americans first before the masses have the political will and desire to overhaul the structure of the nation's economy.
- Demosthenes of America said... The fact that there are so many stories like this is unconscionable to me. Once again, we are overflowing with "attorneys" but what can an attorney do? Represent them as an advocate against loan companies and debt collectors?
These are systemic, structural problems that can't be addressed on a case by case basis--what's needed is leadership and compassion from policymakers and our elected political leaders...but they have nothing but public scorn and spite for those on the receiving end of this "recession."
- Demosthenes of America (again wins a place this evening for exemplary comments): Absolutely. Every moment is a conscious choice. These problems are made by people, they can be solved by people.
My grandfather and his entire family were "okies," the people who had to flee the dust bowl and search for work. There have been several fascinating books written by environmental historians that detail how the Dust Bowl was not an Act of God--but the eventual outcome of specific policies and cultural practices in farming and land use that led to the severity of the conditions in the Dust Bowl.
The situation with the economy and the debt burden is no different. For anyone in a decision-making capacity to attribute the current situation solely to moral failings or bad personal decisions on the part of borrowers is out of their mind.
Every social justice movement in history has started somewhere. Just because improvements have been made in a society's laws and/or habits does not mean the underlying causes of discrimination, racism, etc. vanish.
These problems CAN be solved for the better. All it takes is political will. Or as Teddy Roosevelt said, "Blood, toil, sweat and tears."
-Anonymous wrote: You’re doing great work here. Don’t give in to that “multi-decade” “marathon” mentality. We’re the “on-demand” generation and can achieve results much sooner. Look how fast we can communicate around the world.
You’ve made the argument, and the emotional stories will create sympathy. However, if we expect to make any real progress, we have to come up with solutions. Here are my suggestions: (1) make student loan repayments contingent on income with the schools (not the taxpayers) taking the loss (this will create an incentive for schools to find reasonable employment for their graduates and/or limit enrollment in "worthless" programs), (2) start suing and revoking licenses/aid for schools that mislead or can't place graduates in suitable employment, (3) allow student loans to be discharged in bankruptcy after a specified time (e.g. 5 years after graduation) or number of unsuccessful legitimate attempts to gain suitable employment (why should you have to pay for something that you can't use and is thus defective?), (4) pass legislation prohibiting employment discrimination based on being educated or “overqualified,” (5) get organized and threaten to flee the country if some form of relief isn’t provided (if significant numbers leave, how many workers will be left to pay into Medicare and SS?) and (6) update the “Brother, can you spare a dime?” song for the Great Recession (e.g., “Obama, can you spare some change?”)
- Frank The Underemployed Professional said: These stories are just more anecdotal evidence that our nation needs real socialized medicine. Every other first world nation has it.
Our health care system is the most expensive and inefficient in the world, consuming a whopping 17% of GDP while leaving tens of millions of Americans uninsured or under-insured with tens of millions more living in sheer terror of losing their jobs and/or health coverage. We also have hundreds of thousands of medical bankruptcies every year. Also, our current system places a tremendous burden on businesses.
In contrast, nations with socialized medicine spend a far smaller percentage of their GDP on health care, have 100% coverage, have a more content populace, have almost no medical bankruptcies, and often have the same or more doctors per capita. Their businesses don't have to worry about health insurance benefit concerns. (However, they have far fewer wealthy insurance and for-profit hospital executives. I know, it's tragic.)
All of my personal experiences over the past decade have transformed me from an advocate of laissez-faire capitalism into an advocate of a mixed economy. Sadly, free market dogma and fear of socialism is so deeply-ingrained in this country that market forces will have to impoverish tens of millions more Americans first before the masses have the political will and desire to overhaul the structure of the nation's economy.
Kamis, 08 Juli 2010
Destroying The Educated American Family, One Member At A Time
This testimonial from a mother of two daughters illustrates the way in which medical problems can be devastating when people owe student loan debt. This particular family owes multiple debts (the mother has an BA and an MA, the daughters have degrees, as does the father), and further substantiates my argument that the student lending crisis is an inter-generational problem. Her words are a quiet protest of how this crisis is destroying the lives of good, hard-working, educated American families. I read this note shortly before I left for work and tried to stop crying on the way to school on the bus (I get stared at enough - tears would've made me more of a spectacle). I have included most of our correspondence below (names have been changed to protect the family's privacy).
So, this morning, I opening this email from Mrs. Q explaining her family's predicament:
Dear Cryn,
I admire you for all that you're doing regarding student debt.
Our story is probably not too different from most, but there are a couple of unique things I can tell you.
I have 2 daughters, Angela, 27 & Maria, 24. When Angie was 16 (after 4 other heart surgeries) she had a heart transplant . . . more unrelated surgeries for medical problems & last year a kidney transplant; Maria was the donor.
Now, after Angie had the heart transplant & gallbladder out, she went to community college with [her sister.] Because she missed so much time at school she was behind. She had her heart set on going to DePaul in Chicago & Maria went too. We had no reason to believe they would have difficulty getting jobs. Both majored in business & did well. They graduated in 2008 & had no job prospects. . . no calls on resumes. Then came the news that Angie was in end-stage renal failure. She was literally dying. . . again . . . in front of our eyes. Finally, April/2009, she received the much-needed kidney. As they recovered, they began looking for jobs again. Angie finally got a job in the fall of '09, at a facility for mentally/physically disabled people, but not doing anything related to business & making very little money. Maria borrowed $2,000, got a nail tech license, & got a job almost immediately upon getting her license.
Problem is that they were out of work for so long & my husband lost his job due to illness & was also out of work for a year . . . I was supporting all of us. I filed bankruptcy due to medical bills & we went into foreclosure, which I got us out of . . . though not sure that was a great idea. Oh, yeah . . . I am a breast cancer survivor of 4 years . . . in the middle of everything, I had to go through chemo, radiation, & other treatments (lumpectomy was first).
I've tried negotiating with Direct Loans & they are of very little help. I can barely keep up with everything. We shouldn't have cell phones, but I need to be reachable for medical issues. There are so many things we've cut back on & it makes little or no difference.
It is so exhausting and frustrating because we are responsible people and want to meet our obligations. It has destroyed my faith in the educational system because they will take money from anyone & have no responsibility in guiding students into majors where they can find jobs.
I support you in your efforts and will do anything I can to help out.
Thanks for your time,
Mrs. Q
While I wouldn't say I'm hardened because of the thousands of stories I read from all the student loan debtors who've reached to me by now, I am certainly beyond the stage of crying in the way I used to last summer. But in this case, my sadness for this family got the best of me, and I was already in tears after reading the second paragraph. On top of that, I was angry as hell. For those individuals who accuse student loan debtors of being lazy or buying extravagant things, this woman is suggesting she shouldn't have a cell phone and justifying it because of her medical problems. For God sake's is owning a cell phone really such a luxury? I dare someone to tell me it is. Moreover, how is it people like this are struggling to make ends meet, and why isn't the Administration doing anything to help them? I'm really at a loss. I mean, are they just callous or too aloof from being enclosed by the friggin' beltway? Although I was running late to school (on my own schedule) and had to tend to a new pup, I wrote Mrs. Q back immediately. Here's what I said:
Dear Mrs. Q,
Many thanks for writing to me and sharing such personal things. I have to admit, I'm having a hard time responding right now, because your email stirred so many emotions within me. It saddens me to read that you and your family have been through such hardship, and it makes me more determined than ever to fight even harder for change.
It is understandable that you have lost faith in the education system in the U.S. As you know firsthand, it's caused your family nothing but heartache. But it's also disheartening that you have - I hold higher education in high regard, and do not think that obtaining degrees should come with such a heavy cost.
I won't give up fighting. You and your family deserve better, and it's a shame that the way in which higher education must be financed in the U.S. forces people like you to suffer.
Let me know if I may post your story.
Thanks.
Kind regards,
Cryn
Mrs. Q responded immediately:
Cryn,
Thank you for taking time to read our story. I would love for you to post it . . . It is hard for me to reconcile my feelings about higher education, as I have both a bachelors & masters in speech/language pathology & have always thought that a college education was very important. Interestingly, though not at the time, we had a huge fight on our hands with the hospital, last year, because Angela was under-insured & they kept waffling about whether or not they would perform the transplant. Now she fights with the insurance to pay for the anti-rejection meds. We've gotten so many breaks, with her health, yet it is a constant fight to keep on top of jobs & still make ends meet.
If you need, I would love to help you fight for this very worthwhile cause. Please let me know anything I can do to help.
Sincerely,
Mrs. Q
After reading this message and thinking about it during my breaks this evening (ironically, I am teaching a literature class and we're reading Grapes of Wrath), I kept asking myself over and over this evening: is this a fair and just America? Why are people like this being punished, and why is it nobody on the Hill or in the White House gives a damned? The questions returned again and again, and the intensity of their rhythm in my mind increased after viewing this great song clip with a montage of images from the 1920s and 1930s in class. It's the famous song, "Brother, can you spare me a dime?" (I encourage you to listen to it while reading this post, and then go back and watch it with the images)
I wish we could convince policy makers to help these people immediately. Drastic changes are needed. But I fear that I will fight this battle until the day I die, and I'm not sure how much progress I'll be able to make for people like Mrs. Q and her family. As one reader aptly stated, on my post entitled, "Can we get anything right for hard-working Americans? Anything?"
Ms. Johannsen, you are on the start of a multi-decade movement. Significant education reform will take at least one generation's efforts to achieve. It is on the scale of achieving womens' sufferage [sic].
Even the recent health care and student loan reform took decades to achieve. Just remember that you are running a marathon, not a dash.
For those who don't remember, student loans have been non-dischargeable debt since the 1970s.
http://www.finaid.org/questions/bankruptcyexception.phtml
Luckily, I am healthy and young, so I'm more than prepared to fight this battle for the rest of my life. People like Mrs. Q and her family remind me of why we must not give up.
So, this morning, I opening this email from Mrs. Q explaining her family's predicament:
Dear Cryn,
I admire you for all that you're doing regarding student debt.
Our story is probably not too different from most, but there are a couple of unique things I can tell you.
I have 2 daughters, Angela, 27 & Maria, 24. When Angie was 16 (after 4 other heart surgeries) she had a heart transplant . . . more unrelated surgeries for medical problems & last year a kidney transplant; Maria was the donor.
Now, after Angie had the heart transplant & gallbladder out, she went to community college with [her sister.] Because she missed so much time at school she was behind. She had her heart set on going to DePaul in Chicago & Maria went too. We had no reason to believe they would have difficulty getting jobs. Both majored in business & did well. They graduated in 2008 & had no job prospects. . . no calls on resumes. Then came the news that Angie was in end-stage renal failure. She was literally dying. . . again . . . in front of our eyes. Finally, April/2009, she received the much-needed kidney. As they recovered, they began looking for jobs again. Angie finally got a job in the fall of '09, at a facility for mentally/physically disabled people, but not doing anything related to business & making very little money. Maria borrowed $2,000, got a nail tech license, & got a job almost immediately upon getting her license.
Problem is that they were out of work for so long & my husband lost his job due to illness & was also out of work for a year . . . I was supporting all of us. I filed bankruptcy due to medical bills & we went into foreclosure, which I got us out of . . . though not sure that was a great idea. Oh, yeah . . . I am a breast cancer survivor of 4 years . . . in the middle of everything, I had to go through chemo, radiation, & other treatments (lumpectomy was first).
I've tried negotiating with Direct Loans & they are of very little help. I can barely keep up with everything. We shouldn't have cell phones, but I need to be reachable for medical issues. There are so many things we've cut back on & it makes little or no difference.
It is so exhausting and frustrating because we are responsible people and want to meet our obligations. It has destroyed my faith in the educational system because they will take money from anyone & have no responsibility in guiding students into majors where they can find jobs.
I support you in your efforts and will do anything I can to help out.
Thanks for your time,
Mrs. Q
While I wouldn't say I'm hardened because of the thousands of stories I read from all the student loan debtors who've reached to me by now, I am certainly beyond the stage of crying in the way I used to last summer. But in this case, my sadness for this family got the best of me, and I was already in tears after reading the second paragraph. On top of that, I was angry as hell. For those individuals who accuse student loan debtors of being lazy or buying extravagant things, this woman is suggesting she shouldn't have a cell phone and justifying it because of her medical problems. For God sake's is owning a cell phone really such a luxury? I dare someone to tell me it is. Moreover, how is it people like this are struggling to make ends meet, and why isn't the Administration doing anything to help them? I'm really at a loss. I mean, are they just callous or too aloof from being enclosed by the friggin' beltway? Although I was running late to school (on my own schedule) and had to tend to a new pup, I wrote Mrs. Q back immediately. Here's what I said:
Dear Mrs. Q,
Many thanks for writing to me and sharing such personal things. I have to admit, I'm having a hard time responding right now, because your email stirred so many emotions within me. It saddens me to read that you and your family have been through such hardship, and it makes me more determined than ever to fight even harder for change.
It is understandable that you have lost faith in the education system in the U.S. As you know firsthand, it's caused your family nothing but heartache. But it's also disheartening that you have - I hold higher education in high regard, and do not think that obtaining degrees should come with such a heavy cost.
I won't give up fighting. You and your family deserve better, and it's a shame that the way in which higher education must be financed in the U.S. forces people like you to suffer.
Let me know if I may post your story.
Thanks.
Kind regards,
Cryn
Mrs. Q responded immediately:
Cryn,
Thank you for taking time to read our story. I would love for you to post it . . . It is hard for me to reconcile my feelings about higher education, as I have both a bachelors & masters in speech/language pathology & have always thought that a college education was very important. Interestingly, though not at the time, we had a huge fight on our hands with the hospital, last year, because Angela was under-insured & they kept waffling about whether or not they would perform the transplant. Now she fights with the insurance to pay for the anti-rejection meds. We've gotten so many breaks, with her health, yet it is a constant fight to keep on top of jobs & still make ends meet.
If you need, I would love to help you fight for this very worthwhile cause. Please let me know anything I can do to help.
Sincerely,
Mrs. Q
After reading this message and thinking about it during my breaks this evening (ironically, I am teaching a literature class and we're reading Grapes of Wrath), I kept asking myself over and over this evening: is this a fair and just America? Why are people like this being punished, and why is it nobody on the Hill or in the White House gives a damned? The questions returned again and again, and the intensity of their rhythm in my mind increased after viewing this great song clip with a montage of images from the 1920s and 1930s in class. It's the famous song, "Brother, can you spare me a dime?" (I encourage you to listen to it while reading this post, and then go back and watch it with the images)
I wish we could convince policy makers to help these people immediately. Drastic changes are needed. But I fear that I will fight this battle until the day I die, and I'm not sure how much progress I'll be able to make for people like Mrs. Q and her family. As one reader aptly stated, on my post entitled, "Can we get anything right for hard-working Americans? Anything?"
Ms. Johannsen, you are on the start of a multi-decade movement. Significant education reform will take at least one generation's efforts to achieve. It is on the scale of achieving womens' sufferage [sic].
Even the recent health care and student loan reform took decades to achieve. Just remember that you are running a marathon, not a dash.
For those who don't remember, student loans have been non-dischargeable debt since the 1970s.
http://www.finaid.org/questions/bankruptcyexception.phtml
Luckily, I am healthy and young, so I'm more than prepared to fight this battle for the rest of my life. People like Mrs. Q and her family remind me of why we must not give up.
Selasa, 06 Juli 2010
Disagreeing With A Knowledgeable Reader
[The following post is the first of many in a series of responses to a knowledgeable reader.]
Readers' responses are meaningful to me, and I often like to post them more publicly when they are noteworthy. The topic of the student lending crisis is heating up. My readers are also quite aware that this issue sparks all sorts of emotional reactions. I have Friedmanites who let me know why I'm in the wrong, liberals who disagree with some of my solutions, and an array of conservatives who either disparage my work or admire my critiques of the present Administration.
Naturally, I receive a lot of despicable comments quite frequently, and some of these remarks are just downright nasty. Recently I decided to post a negative remark with one that was insightful (see "Readers' Responses: Good Point/Wretched Point"). Something different, however, is happening on Education Matters. Something that's good. I'm noticing a distinct change in most of the comments. The inane, as well as (quite sadly) misogynistic insults are at a soft murmur, and the readers' response have suddenly become sophisticated, fair (if they disagree), and - best of all - insightful.
One recent reader's comments deserves to be mentioned. There were several remarks made by this particular person, or at least I'm presuming it's the same individual. I may be incorrect in assuming that, however, the tone and style of each response is quite similar. Since this reader took the time to rebut my comments and, most importantly, my suggestions on how to solve the student lending crisis, I think they deserve a sound follow-up. Several, in fact. I'd also like to respond to their remarks and let them know why I think they're incorrect, or at least partially so. In my paper, "The Plight of Current Borrowers: An Appeal For Immediate Relief," that was presented at the Rev. Jesse Jackson's convention in Chicago, IL in mid-June (it was sponsored by the Rainbow PUSH Coalition, and the paper can be read in its entirety here), this particular reader took issue with the way in which I likened student loans to the subprime mortgage crisis. Here's what they wrote:
There is no relation or comparison of federally-guaranteed student loans to subprime mortgages. Most subprime mortgages were backed only by the faith of those who originated them. (A minority of them were backed by Fannie/Freddie, which were not federal agencies and which had, at best, only a vaguely-implied taxpayer backstop.)
The federally-guaranteed student loans (FFELPs), made by banks, nonbank lenders, state lending agencies and nonprofit foundations, however, were guaranteed 99% against default by guaranty agencies' federal government funds, which, in turn, had those loans guaranteed 95% by the actual U.S. Education Dept. After 6/30/10, there will not be any more of these loans issued, at least, and all newly-originated loans starting July 1 will be federal direct loans.
FFELPs were/are among the safest investments in the world. Defaults are very low, and, if the borrower defaults, sure the investor doesn't get the 20 years of future interest, but at least principal (including capitalized interest) is protected. In addition, the quarterly return is guaranteed by the taxpayer to be at a certain level, and U.S. Ed Dept covers it with quarterly payments to the loan holder. For the certain types of loans ("subs") where the borrower doesn't owe interest during school, the U.S. Ed Dept reimburses the loan holder for that interest.
The problem with U.S. and international "sophisticated" investors is that apparently they aren't so sophisticated. Three years ago they thought any type of loan imaginable was as safe as Fort Knox. By spring 2008, they thought all types of loans were as risky as an unsecured payday loan. Stupid. They missed the boat. While the investment "masters of the universe" can definitely do something about unfreezing the secondary and securitization markets of FFELPs issued prior to 7/1/10, there will be no new FFELPs issued.
These are great points, but I firmly disagree on several. (Incidentally, it's my hunch that this person is either writing from inside the Beltway or works at a higher education think tank somewhere in the U.S. Regardless, this individual is definitely informed about the issue).
For starters, Steve Eisman (who was the main character in Michael Lewis's The Big Short) last week testified before Sen. Harkin's committee. During his testimony Eisman argued that the student loan situation is comparable if not worse than the subprime mortgage fiasco. Moreover, if anyone is interested in revisiting or reading my own analysis of Mr. Eisman's initial remarks about for-profit colleges, please see, "Steve Eisman Blasts For-Profits, Arguing 'Subprime Goes To College.'"
It would be ludicrous to suggest that student loans are the same as mortgage loans. They are, naturally, two different things. The point that I'm trying to make is that the Administration and Congress have been falling over themselves trying to assist current mortgagees, but have done (with exception of IBR) nothing for current student loans borrowers.
As for the writer's last paragraph - it's great. I agree. A lot of these individuals in finance have no clue what they are doing.
Stay tuned for more responses to this reader's comments. On that note, thanks to those of you who are providing such substantive remarks. I am greatly appreciative.
Readers' responses are meaningful to me, and I often like to post them more publicly when they are noteworthy. The topic of the student lending crisis is heating up. My readers are also quite aware that this issue sparks all sorts of emotional reactions. I have Friedmanites who let me know why I'm in the wrong, liberals who disagree with some of my solutions, and an array of conservatives who either disparage my work or admire my critiques of the present Administration.
Naturally, I receive a lot of despicable comments quite frequently, and some of these remarks are just downright nasty. Recently I decided to post a negative remark with one that was insightful (see "Readers' Responses: Good Point/Wretched Point"). Something different, however, is happening on Education Matters. Something that's good. I'm noticing a distinct change in most of the comments. The inane, as well as (quite sadly) misogynistic insults are at a soft murmur, and the readers' response have suddenly become sophisticated, fair (if they disagree), and - best of all - insightful.
One recent reader's comments deserves to be mentioned. There were several remarks made by this particular person, or at least I'm presuming it's the same individual. I may be incorrect in assuming that, however, the tone and style of each response is quite similar. Since this reader took the time to rebut my comments and, most importantly, my suggestions on how to solve the student lending crisis, I think they deserve a sound follow-up. Several, in fact. I'd also like to respond to their remarks and let them know why I think they're incorrect, or at least partially so. In my paper, "The Plight of Current Borrowers: An Appeal For Immediate Relief," that was presented at the Rev. Jesse Jackson's convention in Chicago, IL in mid-June (it was sponsored by the Rainbow PUSH Coalition, and the paper can be read in its entirety here), this particular reader took issue with the way in which I likened student loans to the subprime mortgage crisis. Here's what they wrote:
There is no relation or comparison of federally-guaranteed student loans to subprime mortgages. Most subprime mortgages were backed only by the faith of those who originated them. (A minority of them were backed by Fannie/Freddie, which were not federal agencies and which had, at best, only a vaguely-implied taxpayer backstop.)
The federally-guaranteed student loans (FFELPs), made by banks, nonbank lenders, state lending agencies and nonprofit foundations, however, were guaranteed 99% against default by guaranty agencies' federal government funds, which, in turn, had those loans guaranteed 95% by the actual U.S. Education Dept. After 6/30/10, there will not be any more of these loans issued, at least, and all newly-originated loans starting July 1 will be federal direct loans.
FFELPs were/are among the safest investments in the world. Defaults are very low, and, if the borrower defaults, sure the investor doesn't get the 20 years of future interest, but at least principal (including capitalized interest) is protected. In addition, the quarterly return is guaranteed by the taxpayer to be at a certain level, and U.S. Ed Dept covers it with quarterly payments to the loan holder. For the certain types of loans ("subs") where the borrower doesn't owe interest during school, the U.S. Ed Dept reimburses the loan holder for that interest.
The problem with U.S. and international "sophisticated" investors is that apparently they aren't so sophisticated. Three years ago they thought any type of loan imaginable was as safe as Fort Knox. By spring 2008, they thought all types of loans were as risky as an unsecured payday loan. Stupid. They missed the boat. While the investment "masters of the universe" can definitely do something about unfreezing the secondary and securitization markets of FFELPs issued prior to 7/1/10, there will be no new FFELPs issued.
These are great points, but I firmly disagree on several. (Incidentally, it's my hunch that this person is either writing from inside the Beltway or works at a higher education think tank somewhere in the U.S. Regardless, this individual is definitely informed about the issue).
For starters, Steve Eisman (who was the main character in Michael Lewis's The Big Short) last week testified before Sen. Harkin's committee. During his testimony Eisman argued that the student loan situation is comparable if not worse than the subprime mortgage fiasco. Moreover, if anyone is interested in revisiting or reading my own analysis of Mr. Eisman's initial remarks about for-profit colleges, please see, "Steve Eisman Blasts For-Profits, Arguing 'Subprime Goes To College.'"
It would be ludicrous to suggest that student loans are the same as mortgage loans. They are, naturally, two different things. The point that I'm trying to make is that the Administration and Congress have been falling over themselves trying to assist current mortgagees, but have done (with exception of IBR) nothing for current student loans borrowers.
As for the writer's last paragraph - it's great. I agree. A lot of these individuals in finance have no clue what they are doing.
Stay tuned for more responses to this reader's comments. On that note, thanks to those of you who are providing such substantive remarks. I am greatly appreciative.
Kamis, 01 Juli 2010
Can we get anything right for hard-working Americans? Anything?
I read these articles far away from home. The most recent one is about double-dip fears and the fact that layoffs are climbing with the deepening housing slump.
These days abroad are unsettling, and it's got me really worrying about the state of our nation. What will it be like in a year? 2 years? A decade? Who else will lose out on opportunities because of the role big money plays in D.C. and on Wall Street?
Just the other day Krugman is claiming that we're in a third Depression. Funny. I thought he was claiming recently that we were in a recovery. I don't get him. That's to say, he's fed all sorts of things by the White House or something. His remarks about this Depression remind me of his writings about the health care bill. At first, he was absolutely against it and went on rants about how bad it was, how it had been essentially watered down (I even heard him in an interview on NPR saying as much), and then in a flash, he's backing the thing. Strange one, that Krugman.
I'm frankly glad as hell to be out of the Beltway. I'm sorry, none of these people get it. You have people who've been out of work for over a year, their unemployment benefits are at risked of being slashed (thanks to an idiotic Congress. I'm sorry. I'm just calling it what it is - friggin' idiotic). On top of that, many of these people are struggling to make ends meet with their loan shark lenders, and everyone here knows by now that the Department of Education could give two hoots about the indentured educated class. I dare say, this country is runnin' on empty, and it sure as hell doesn't appear that anyone who could make a difference gives a damned. It's a hard thing to watch your country continue to crumble. I was naive in thinking that Pres. Obama meant the things he promised during the election. I've thought quite recently that I'd like to become a politician, because I believe that it means being a good public servant and helping fellow Americans, but I'm so livid at the way in which things are going, I'm not so sure I'll even vote again. It's a damned shame. I still remember the day in which Pres. Obama waved to me before being sworn in. I recall the millions of people in D.C. who showed up, stood in the frigid air, to listen to his inspiring words. It was astonishing to be a part of such a huge group, and only be listening to that man's voice. All of us were silent. Not even a baby cried. And for what? More of the same? It appears to be the case.
These days abroad are unsettling, and it's got me really worrying about the state of our nation. What will it be like in a year? 2 years? A decade? Who else will lose out on opportunities because of the role big money plays in D.C. and on Wall Street?
Just the other day Krugman is claiming that we're in a third Depression. Funny. I thought he was claiming recently that we were in a recovery. I don't get him. That's to say, he's fed all sorts of things by the White House or something. His remarks about this Depression remind me of his writings about the health care bill. At first, he was absolutely against it and went on rants about how bad it was, how it had been essentially watered down (I even heard him in an interview on NPR saying as much), and then in a flash, he's backing the thing. Strange one, that Krugman.
I'm frankly glad as hell to be out of the Beltway. I'm sorry, none of these people get it. You have people who've been out of work for over a year, their unemployment benefits are at risked of being slashed (thanks to an idiotic Congress. I'm sorry. I'm just calling it what it is - friggin' idiotic). On top of that, many of these people are struggling to make ends meet with their loan shark lenders, and everyone here knows by now that the Department of Education could give two hoots about the indentured educated class. I dare say, this country is runnin' on empty, and it sure as hell doesn't appear that anyone who could make a difference gives a damned. It's a hard thing to watch your country continue to crumble. I was naive in thinking that Pres. Obama meant the things he promised during the election. I've thought quite recently that I'd like to become a politician, because I believe that it means being a good public servant and helping fellow Americans, but I'm so livid at the way in which things are going, I'm not so sure I'll even vote again. It's a damned shame. I still remember the day in which Pres. Obama waved to me before being sworn in. I recall the millions of people in D.C. who showed up, stood in the frigid air, to listen to his inspiring words. It was astonishing to be a part of such a huge group, and only be listening to that man's voice. All of us were silent. Not even a baby cried. And for what? More of the same? It appears to be the case.
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