A non-profit organization dedicated to the eradication of all student loan debt through activism, education, and legislation; because student loan debt is dangerous to the US economy and to the health and well-being of individual Americans and their families. CRYN JOHANNSEN, Founder & Executive Director
Wednesday, August 11, 2010
Student Loan Debt Art
One of my readers recently sent me images of her student loan statements. She's added her own story to them - let's take a look at a new form of art, that of student loan debt art.
Conversations That Matter: Claudia Dreifus and Zac Bissonnette
The comments from insiders and higher education policy wonks increase each day on Education Matters. Several authors have also been in touch with me to share their thoughts on issues about student loan debt and higher education. Most notably, I've had some great exchanges with Claudia Dreifus and Zac Bissonnette.
Ms. Dreifus and her husband, Andrew Hacker, have a forthcoming book entitled, Higher Education? How Colleges Are Wasting Our Money, And Failing Our Kids, And What We Can Do About It. There's already a lot of buzz and positive reviews about this new book. It is a pleasure and an honor to be in touch with Ms. Dreifus, and I want to publicly thank her husband and her for listing Education Matters on their website. As many of you are aware, I am in the midst of writing my own book about the student lending crisis (the working title is The New Indentured Educated Class: How Higher Education Has Impoverished The Best And The Brightest, And What We Can Do About It). I look forward to receiving feedback from Mr. Hacker and Ms. Dreifus on that book, too.
As I said, I have also been in touch with Zac Bissonnette.Mr. Bissonnette is a frequent contributor to DailyFinance.com and the HuffingtonPost. We have had some lively discussions about the student lending crisis. It is so refreshing to find a person like him, as we agree on so many issues surrounding the student lending industry and how education is financed in the U.S. He, too, has a forthcoming book, which is also getting quite a bit of attention (it was just mentioned by Suzie Orman on a recent show), called Debt-Free U: How I Paid for an Outstanding College Education Without Loans, Scholarships, or Mooching off My Parents.
Ms. Dreifus and her husband, Andrew Hacker, have a forthcoming book entitled, Higher Education? How Colleges Are Wasting Our Money, And Failing Our Kids, And What We Can Do About It. There's already a lot of buzz and positive reviews about this new book. It is a pleasure and an honor to be in touch with Ms. Dreifus, and I want to publicly thank her husband and her for listing Education Matters on their website. As many of you are aware, I am in the midst of writing my own book about the student lending crisis (the working title is The New Indentured Educated Class: How Higher Education Has Impoverished The Best And The Brightest, And What We Can Do About It). I look forward to receiving feedback from Mr. Hacker and Ms. Dreifus on that book, too.
As I said, I have also been in touch with Zac Bissonnette.Mr. Bissonnette is a frequent contributor to DailyFinance.com and the HuffingtonPost. We have had some lively discussions about the student lending crisis. It is so refreshing to find a person like him, as we agree on so many issues surrounding the student lending industry and how education is financed in the U.S. He, too, has a forthcoming book, which is also getting quite a bit of attention (it was just mentioned by Suzie Orman on a recent show), called Debt-Free U: How I Paid for an Outstanding College Education Without Loans, Scholarships, or Mooching off My Parents.
No surprise here - recent article by M. Pilon states that student loan debt now surpasses credit card debt
Is anyone here that surprised that the WSJ article states that student loan debt is higher than credit card debt? That's why it's a crisis, and why I've been raising awareness with countless volunteers for well over a year.
Wednesday, August 4, 2010
"[My education] was a serious mistake:" An Indentured Educated Citizen Laments Her Decision To Go To School
Education is not about the return on an investment. Education cannot be assessed in terms of market rates. Education is more than the monetary value which we ascribe to it. Education should be outside of the realm of the marketplace. These are the things I often think about and believe when I am considering the larger socio-cultural significance of earning a degree and being shouldered with the burden of so much debt. However, one of my readers - Spekkio - recently discussed the "Cult of College" in a recent post that received a wide variety of reactions. In this post, I simply asked: "Did you pursue an education only for a future return, i.e., was it merely an investment and nothing beyond that?"
This may sound contradictory vis-a-vis the statements I just made above, but I do, to a certain extent, agree with Spekkio. Nevertheless, I also think there is a critical value to being trained by universities (whether it be in the humanities or the sciences), and these critical thinking skills that we obtain in these institutions allow us to go on and do good things for society, or at least that is the hope. But not everyone agrees with my take on education, even those who support my advocacy work and are part of the indentured educated class. One person recently shared her story with me, and made it clear that she regretted ever going to school. Her testimonial is important because it demonstrates how cynical people have become about the degrees they possess. I don't blame them. Instead, I blame the entire system. I blame the U.S. Government. I blame the student lenders. I blame the universities and the colleges. As this lending industry grew and flourished, the entire system was ultimately created by bad decisions and bad policies. However, systems can be changed. If we continue to point out the inadequacies and injustices of institutional power, we can eventually change it. Furthermore, we're equipped to change it. Our own recent history in the U.S. provides us with models for this type of change, too. That's why I intend to continue this battle. As I've told many of my readers, I won't give up until the day I die. Hopefully that won't be for a very long time.
In the meantime, let's read what Ms. Q has to say about the pointlessness of obtaining a degree:
I grew up in a working class family where there was very little money and that made saving money for college impossible for my parents. I was taught as a child and bought into the idea that college is the way to a better life. I accepted the whole American Dream lie, work hard, go to college, you can get a good job and have a good life. Since my family was unable to help me with my education and made too much money to qualify for grants, the only way to fund my education was through student loans.
I took out both unsubsidized and subsidized loans, along with private loans. My loans went to fund pretty much my entire cost of education including room and board. I chose a major without much thought, I picked what really interested me instead of picking a degree in something that there were jobs in. I received both a Bachelor's and Master of Arts in Sociology. My only justification is that I was young and stupid and made a very serious mistake.
After graduation it took me almost a year to find a job and that job didn't last more than two weeks, it was a job that a person with my degree could get, apparently I wasn't very good at being a job developer. It took me a little over a month and I got hired as case manager at a community mental health agency where I helped people with severe and persistent mental illness. Unfortunately, my boss was very verbally abusive and a bully she would sometimes corner me in rooms and threatened me with me with my job, it was a very bad situation and I felt like a battered wife. I was eventually let go because I had finally had enough and stood up for myself and was fired the next day. The last two months of that job I was put on medical leave by my doctor for two weeks because I had a nervous breakdown due to the bullying from my boss. I started seeing a counselor because of the stress and was suicidal for a few weeks and was nearly hospitalized.
After that I found a job that is way below my qualifications, a caregiver to people with developmental disabilities. This job you can get with only a high school diploma and pays slightly above poverty level wages. I love this job it just doesn't pay enough. Unfortunately, shortly after I took this job, the big recession hit. I have been unable to secure a better paying job.
Currently, I am around 90k in both federal and private student loan debt. I have defaulted on a loan to [my bank] and made payment arrangements to pay $75 per month and that is the max I can pay. My federal student loan debt is 73k and I have never once been able to make the $370 monthly payment; the forbearance keeps raising my debt, and I can't get on the IBR plan because I can't afford a monthly payment. I just got out of forbearance, am 3 months behind and am scared to call. I get calls daily. My credit rating is shattered. My two private loans were co-signed by my grandmother who is also low income, When I cant pay they call and harass her. I feel horrible, I've ruined my relationship with her, ruined her credit, and cause her daily stress which aggravate her health problems.
My student loans have ruined my life, my relationship with my family, my credit, self-esteem you name it. I will turn 30 in September and thought that by this point in my life I would have a career, but all I have is debt and disappointment. I don't find it fair that I cannot get bankruptcy protection. We are told (lies) the education is good debt, investment in yourself etc and if it is the responsible thing to do then why are we being treated so horribly. You can rake up a bunch of credit card debt, buy a house you can't afford, gamble your money away and you can get it wiped away, those are clearly very irresponsible things so I say are we not punishing the wrong people, I think so! I think everybody deserves a second chance in life. We even give that to convicted felons, they can get out of prison on parole and there are even programs to help them find jobs!!!!
All this debt makes me feel like a total loser and failure. I am a recovering alcoholic with two years sobriety and some days I get so depressed because of my debt I nearly relapse. All I can do is get my voice out there like a lot of us and pray one day change happens!
What if Ms. Q.'s notion that going to college is pointless and a mistake catches on? I've already been told by parents of young children that they don't want their children going to school. What if the secret gets out, and everyone realizes that, at this juncture, higher education is nothing but a sham? Would that change the injustices of this system?
This may sound contradictory vis-a-vis the statements I just made above, but I do, to a certain extent, agree with Spekkio. Nevertheless, I also think there is a critical value to being trained by universities (whether it be in the humanities or the sciences), and these critical thinking skills that we obtain in these institutions allow us to go on and do good things for society, or at least that is the hope. But not everyone agrees with my take on education, even those who support my advocacy work and are part of the indentured educated class. One person recently shared her story with me, and made it clear that she regretted ever going to school. Her testimonial is important because it demonstrates how cynical people have become about the degrees they possess. I don't blame them. Instead, I blame the entire system. I blame the U.S. Government. I blame the student lenders. I blame the universities and the colleges. As this lending industry grew and flourished, the entire system was ultimately created by bad decisions and bad policies. However, systems can be changed. If we continue to point out the inadequacies and injustices of institutional power, we can eventually change it. Furthermore, we're equipped to change it. Our own recent history in the U.S. provides us with models for this type of change, too. That's why I intend to continue this battle. As I've told many of my readers, I won't give up until the day I die. Hopefully that won't be for a very long time.
In the meantime, let's read what Ms. Q has to say about the pointlessness of obtaining a degree:
I grew up in a working class family where there was very little money and that made saving money for college impossible for my parents. I was taught as a child and bought into the idea that college is the way to a better life. I accepted the whole American Dream lie, work hard, go to college, you can get a good job and have a good life. Since my family was unable to help me with my education and made too much money to qualify for grants, the only way to fund my education was through student loans.
I took out both unsubsidized and subsidized loans, along with private loans. My loans went to fund pretty much my entire cost of education including room and board. I chose a major without much thought, I picked what really interested me instead of picking a degree in something that there were jobs in. I received both a Bachelor's and Master of Arts in Sociology. My only justification is that I was young and stupid and made a very serious mistake.
After graduation it took me almost a year to find a job and that job didn't last more than two weeks, it was a job that a person with my degree could get, apparently I wasn't very good at being a job developer. It took me a little over a month and I got hired as case manager at a community mental health agency where I helped people with severe and persistent mental illness. Unfortunately, my boss was very verbally abusive and a bully she would sometimes corner me in rooms and threatened me with me with my job, it was a very bad situation and I felt like a battered wife. I was eventually let go because I had finally had enough and stood up for myself and was fired the next day. The last two months of that job I was put on medical leave by my doctor for two weeks because I had a nervous breakdown due to the bullying from my boss. I started seeing a counselor because of the stress and was suicidal for a few weeks and was nearly hospitalized.
After that I found a job that is way below my qualifications, a caregiver to people with developmental disabilities. This job you can get with only a high school diploma and pays slightly above poverty level wages. I love this job it just doesn't pay enough. Unfortunately, shortly after I took this job, the big recession hit. I have been unable to secure a better paying job.
Currently, I am around 90k in both federal and private student loan debt. I have defaulted on a loan to [my bank] and made payment arrangements to pay $75 per month and that is the max I can pay. My federal student loan debt is 73k and I have never once been able to make the $370 monthly payment; the forbearance keeps raising my debt, and I can't get on the IBR plan because I can't afford a monthly payment. I just got out of forbearance, am 3 months behind and am scared to call. I get calls daily. My credit rating is shattered. My two private loans were co-signed by my grandmother who is also low income, When I cant pay they call and harass her. I feel horrible, I've ruined my relationship with her, ruined her credit, and cause her daily stress which aggravate her health problems.
My student loans have ruined my life, my relationship with my family, my credit, self-esteem you name it. I will turn 30 in September and thought that by this point in my life I would have a career, but all I have is debt and disappointment. I don't find it fair that I cannot get bankruptcy protection. We are told (lies) the education is good debt, investment in yourself etc and if it is the responsible thing to do then why are we being treated so horribly. You can rake up a bunch of credit card debt, buy a house you can't afford, gamble your money away and you can get it wiped away, those are clearly very irresponsible things so I say are we not punishing the wrong people, I think so! I think everybody deserves a second chance in life. We even give that to convicted felons, they can get out of prison on parole and there are even programs to help them find jobs!!!!
All this debt makes me feel like a total loser and failure. I am a recovering alcoholic with two years sobriety and some days I get so depressed because of my debt I nearly relapse. All I can do is get my voice out there like a lot of us and pray one day change happens!
What if Ms. Q.'s notion that going to college is pointless and a mistake catches on? I've already been told by parents of young children that they don't want their children going to school. What if the secret gets out, and everyone realizes that, at this juncture, higher education is nothing but a sham? Would that change the injustices of this system?
Tuesday, August 3, 2010
Interview with Raymar Hampshire, CEO & Co-Founder of SponsorChange
If you don't believe in significant changes that can take place at the grass-roots level, then stop reading this post now. But for those of you who believe in the power of community, then this interview will be right up your alley. Raymar Hampshire, the CEO and Co-Founder of SponsorChange.org, agreed to be interviewed for Education Matters. I've been an affiliated partner of SponsorChange for over six months (I'm a senior writer on their blog entitled, the Philanthroteer). But there is more. I'm delighted to announce a recent change in my relationship with them. I am now their Online Brand Advocate. That means I'll be helping them spread the word about their organization via Twitter, Facebook, etc. It is an honor and a privilege to be working with such a savvy, community-oriented group of people. So, without further adieu, let's hear what Raymar has to say about his organization.
CCJ: You're the CEO and Co-Founder of SponsorChange.Org. Could you tell us a little bit about your organization and why you decided to start this venture?
RH: SponsorChange.org is a program that seeks to match college graduates that have student loan debt to non-profit organizations that can utilize their skills to complete skill-based service projects. In return SponsorChange.org raises funds to reward these college graduates with student loan payments. The idea was birthed out of research on peer-to-peer lending and micro-financing. Knowing that student loan debt has become a major problem, I began to think about how we could harness the power of micro-financing to help recent grads pay back there student loans, but instead of paying back, as is the case for traditional financing, the beneficiary would pay it forward through service.
CCJ: How many employees do you currently have? Do you plan on expanding your organization? What about your affiliated partners? What roles do the latter group play for SponsorChange?
RH: SponsorChange.org currently has a volunteer based workforce. Many of the volunteers were once SponsorChange.org participants. Currently we have eight volunteer staff members. As our organization continues to grow, we will offer salaried positions. On the partner side, we have developed key relationships to push the ball forward. Cryn Johannsen, helps to inform our members of the latest Higher Education policy news. Dominique Reese, of CommuniTree, assists SponsorChange.org in offering financial education to our members, Patricia Hudak of RealWorld 101, assist with providing our members with practical tips on navigating life after college, and Chris Gray of Trackahead.com, assist us with working with current college students around getting the most out of your college experience. We are always looking to add partners – in order to solve the most challenging problems in higher education it will take many different approaches.
CCJ: How many volunteers do you currently have? What sort of work are they doing?
RH: All of our volunteers are amazing and we certainly would not be able to push the ball forward with nearly as much of intensity without them. We currently have eight tremendous volunteers, they are:
Shawn Agyeman – Director of Marketing
Sheena Hancock – Executive Assistant
Cryn Johannsen - Online Brand Advocate, Blog Contributor
Terryn Hall – Manager of the Philanthroteer
Kelsey Halling – Blog Contributor
Ashlee Boylan – Manager of Non-Profit Relations
Cacie Cunningham – Director of Development
Evan Ayasso – customer relations
CCJ: What are some of the biggest obstacles that you - as a non-profit - are facing when it comes to obtaining sponsorship? What sorts of strategies do you have in place to overcome the problem(s) related to this challenge?
RH: As a start-up it’s challenging to gain funding because of the limited brand and demonstrated impact or what we have to offer. Also, the program is not for everyone. We target to sponsors who are interested in giving directly to a cause/project/person, much in the same way as kiva.org and donorchoose.org. Some sponsors may prefer to donate to a more traditional non-profit organization.
Our strategy is to continue to demonstrate and market the impact of our program. We recently were approached by a local television network about are program and they ran a full segment highlighting our program – take a look here: http://www.youtube.com/watch?v=Moo0CZXtxcg&feature=player_embedded.
CCJ: Your work is currently dedicated to recent graduates. That's highly commendable. I think it's important that younger people get involved with SponsorChange, and for two reasons: first, your program helps people get involved with community. Second, you are teaching younger Americans valuable leadership skills. However, a reader of mine recently made this remark: "See if you can get [SponsorChange] to help us old folks too. I'd be willing to do that kind of work." Do you have any thoughts on how your organization could help out older debtors as well? Or perhaps the better question is this: is your program only geared towards helping younger debtors?
RH: SponsorChange.org is actually open to anyone with student loan debt [my emphasis]. We often get similar questions, and we encourage older adults to sign up. Our marketing message may often resonate with younger-adults, because that is who we are and marketing is reflection of that.
CCJ: When you hear people say that education should only be for a specific number of people in the U.S., what are your thoughts on that? I recently had a heated debate with a number of indentured educated citizens. It all began when I remarked on my Facebook page that I was tired of the argument that claims college degrees are useless because there aren't any jobs. Many told me that they regret obtaining their degrees. Do you think that all U.S. citizens should have equal access to a college degree (or beyond)? If so, why?
RH: Education, formally or informally should be accessible for everyone. Let me be clear, the four-year college experience may not be for everyone; perhaps someone is more interested in going to a trade school. Degrees, are certainly not the end all, but are often necessary to compete in the US marketplace.
Every study I have looked at reinforces this and the value an education has on future earnings. Higher education in all of its forms needs to be not only accessible but an affordable endeavor. The real challenging work and what I am most focused on is how can we create sound policy to achieve this. Through SponsorChange.org we are addressing this problem of college affordability on the back end – my vision is that through our work we can begin to inform policy on college affordability on the front end.
CCJ: Finally, on a personal note, what did you study in school? What degrees do you have? Why do they matter to you? Do you feel like they were a waste of time to obtain?
RH: I received my Bachelor's in Business Management, with a focus in Finance, and I am currently working on a Masters in Public Policy and Management. These degrees are all meaningful to me and the work that I want to do and are certainly not a waste of time for me.
CCJ: You're the CEO and Co-Founder of SponsorChange.Org. Could you tell us a little bit about your organization and why you decided to start this venture?
RH: SponsorChange.org is a program that seeks to match college graduates that have student loan debt to non-profit organizations that can utilize their skills to complete skill-based service projects. In return SponsorChange.org raises funds to reward these college graduates with student loan payments. The idea was birthed out of research on peer-to-peer lending and micro-financing. Knowing that student loan debt has become a major problem, I began to think about how we could harness the power of micro-financing to help recent grads pay back there student loans, but instead of paying back, as is the case for traditional financing, the beneficiary would pay it forward through service.
CCJ: How many employees do you currently have? Do you plan on expanding your organization? What about your affiliated partners? What roles do the latter group play for SponsorChange?
RH: SponsorChange.org currently has a volunteer based workforce. Many of the volunteers were once SponsorChange.org participants. Currently we have eight volunteer staff members. As our organization continues to grow, we will offer salaried positions. On the partner side, we have developed key relationships to push the ball forward. Cryn Johannsen, helps to inform our members of the latest Higher Education policy news. Dominique Reese, of CommuniTree, assists SponsorChange.org in offering financial education to our members, Patricia Hudak of RealWorld 101, assist with providing our members with practical tips on navigating life after college, and Chris Gray of Trackahead.com, assist us with working with current college students around getting the most out of your college experience. We are always looking to add partners – in order to solve the most challenging problems in higher education it will take many different approaches.
CCJ: How many volunteers do you currently have? What sort of work are they doing?
RH: All of our volunteers are amazing and we certainly would not be able to push the ball forward with nearly as much of intensity without them. We currently have eight tremendous volunteers, they are:
Shawn Agyeman – Director of Marketing
Sheena Hancock – Executive Assistant
Cryn Johannsen - Online Brand Advocate, Blog Contributor
Terryn Hall – Manager of the Philanthroteer
Kelsey Halling – Blog Contributor
Ashlee Boylan – Manager of Non-Profit Relations
Cacie Cunningham – Director of Development
Evan Ayasso – customer relations
CCJ: What are some of the biggest obstacles that you - as a non-profit - are facing when it comes to obtaining sponsorship? What sorts of strategies do you have in place to overcome the problem(s) related to this challenge?
RH: As a start-up it’s challenging to gain funding because of the limited brand and demonstrated impact or what we have to offer. Also, the program is not for everyone. We target to sponsors who are interested in giving directly to a cause/project/person, much in the same way as kiva.org and donorchoose.org. Some sponsors may prefer to donate to a more traditional non-profit organization.
Our strategy is to continue to demonstrate and market the impact of our program. We recently were approached by a local television network about are program and they ran a full segment highlighting our program – take a look here: http://www.youtube.com/watch?v=Moo0CZXtxcg&feature=player_embedded.
CCJ: Your work is currently dedicated to recent graduates. That's highly commendable. I think it's important that younger people get involved with SponsorChange, and for two reasons: first, your program helps people get involved with community. Second, you are teaching younger Americans valuable leadership skills. However, a reader of mine recently made this remark: "See if you can get [SponsorChange] to help us old folks too. I'd be willing to do that kind of work." Do you have any thoughts on how your organization could help out older debtors as well? Or perhaps the better question is this: is your program only geared towards helping younger debtors?
RH: SponsorChange.org is actually open to anyone with student loan debt [my emphasis]. We often get similar questions, and we encourage older adults to sign up. Our marketing message may often resonate with younger-adults, because that is who we are and marketing is reflection of that.
CCJ: When you hear people say that education should only be for a specific number of people in the U.S., what are your thoughts on that? I recently had a heated debate with a number of indentured educated citizens. It all began when I remarked on my Facebook page that I was tired of the argument that claims college degrees are useless because there aren't any jobs. Many told me that they regret obtaining their degrees. Do you think that all U.S. citizens should have equal access to a college degree (or beyond)? If so, why?
RH: Education, formally or informally should be accessible for everyone. Let me be clear, the four-year college experience may not be for everyone; perhaps someone is more interested in going to a trade school. Degrees, are certainly not the end all, but are often necessary to compete in the US marketplace.
Every study I have looked at reinforces this and the value an education has on future earnings. Higher education in all of its forms needs to be not only accessible but an affordable endeavor. The real challenging work and what I am most focused on is how can we create sound policy to achieve this. Through SponsorChange.org we are addressing this problem of college affordability on the back end – my vision is that through our work we can begin to inform policy on college affordability on the front end.
CCJ: Finally, on a personal note, what did you study in school? What degrees do you have? Why do they matter to you? Do you feel like they were a waste of time to obtain?
RH: I received my Bachelor's in Business Management, with a focus in Finance, and I am currently working on a Masters in Public Policy and Management. These degrees are all meaningful to me and the work that I want to do and are certainly not a waste of time for me.
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