What is the most outrageous thing a student loan debt collector has said to you?

When I first began speaking to members of the indentured educated class, I was outraged by the things that debt collectors said to them on the phone. So many awful, awful things were said, just to try and squeeze money out of people who made it clear to these loan sharks that they were struggling and simply unable to pay them the amount they were demanding. As many of us are aware, these are the precariat pitted against the precariat, making them a very ruthless bunch.

One woman told me that a debt collector said to her, "Wow, looking at how high your student loans are, you'd be better off finding a rich husband."

On that note, what is the most outrageous thing a debt collector has said to you? What sort of threats have you received?

"Sure, sweetie! I'll just marry a MAN to pay off my loans. That's a SWELL idea!"

The Guardian - Student debt crisis: 'it's like carrying a backpack filled with bricks'

Here is a snippet from my latest piece, which was published by the Guardian today:

Amy Diede homeschools her two children – Caleb, 9, and Ashley, 8 – and is married to a devoted husband and father, Christian. Even though Amy has a master's in psychology, and until recently was a professional herself, Christian is now the breadwinner for the family, working as a cardiovascular nurse on short-term contracts across the country.

At the moment, the Diede family lives in California. Christian wants to own a home again, but for now they are a roaming family whose home is a 400-square-foot RV. A big part of the problem is Amy's student loan debt. It does not merely affect their bank statement, it has found its way into their daily thoughts and life. Together, Amy and Christian owe over $82,000 in student loans.

The rest of the article can be read in its entirety here. 

AirForce Times: Many Vets Charged Out-of-State Tuition, Driving Them Into Debt

During a time in which service members face continued battles abroad, while most Americans falsely presume that the war, for instance, in Afghanistan is winding down, they are facing another hurdle at home - according to a recent article, published in the AirForce Times by Rick Maze, many public colleges and universities charge student veterans out-of-state tuition.

However, the Senate Veterans' Affairs Committee leaders are attempting to put an end to this practice with the Veterans' Educational Transition Act (S 944). In addition, the House Veterans' Affairs Committee Affairs Committee passed legislation, the GI Bill Tuition Fairness Act (HR 357). Since Democrats and Republicans both support - at least publicly - the military and service members, these bills should receive bipartisan support. At the same time, universities and the groups that lobby on their behalf are enormously powerful on the Hill, so it remains to be seen what sort of spin they'll put on exactly why service members pay out-of-state tuition.

Senator Bernie Sanders (I-VT) said that he has heard from a number of veterans that universities lump student veterans with out-of-state students, and this drives up the cost of school for them.

"As a result, many of our nation's veterans must use loans to cover the difference and in the process become indebted with large school loans that will take years to pay off," Sanders said.

These are men and women who have put their lives on the line, so it is beyond problematic that universities charge them out-of-state tuition.

Even worse, what about the veterans who are currently drowning in student loan debt? What about the current soldiers and veterans who are being targeted by for-profit universities? What about the veterans who have gone into default while being deployed? (Yes, this has occurred, because a few of them have written to me and told me that they reached out to their lenders, explained that they were being deployed, and still were placed in default).

Huffington Post: Obama Student Loan Policy Reaping $51 Billion Profit - This is not news . . .

Nevertheless, I am glad to see that pieces from this article are being disseminated widely by mainstream media. For years, AEM has been providing data, analysis, and personal stories to demonstrate the way in which the student loan crisis has been hurting the economy.

And here you have it from agencies and Regulators:

Regulators and officials at agencies [at] the Federal Reserve, Treasury Department, Consumer Financial Protection Bureau and Federal Reserve Bank of New York have all warned that student borrowing may dampen consumption, depress the economy, limit credit creation or pose a threat to financial stability.

Finally! Finally! Finally! Finally. Finally? Wait a minute. I shouldn't be that excited. Yup, I am getting ahead of myself. We're not there yet. We're only kinda talkin' . . .

Because the language is important here. After all, the student loan crisis may:

a) hurt consumption
b) is depressing the economy
c) is limiting credit creation, and
d) is a threat to overall financial stability. 

I think the word may is inappropriate here. It's not that it may dampen things, but rather that it has dampened things. Big time. It most definitely has dampened things, and my work, along with others, has shown that for years. And my book, which is being published by Seven Stories in 2014, will also show that. So, we need these (ahem) damned policymakers in DC to move from using that verb may, and instead start using  the verb has. Then, perhaps only then, we just might get down to business. This is a matter of getting out of denial. That takes time, but I think they've had more than enough time to be out of the denial stage.

I know what the cynics are going to say: don't hold your breath. But you know what? While I might not hold my breath, I'm definitely going to hold onto my hope.

Out of Touch Congressman Tells Homeless, Educated Debtor That He Supports Higher Education

On March 30th, I wrote a brief post about Tagean Goddard's coverage on mounting defaults. A growing number of economists and policy analysts are finally acknowledging that student loan debt, and the alarming number of people who are defaulting on their loans, is having an adverse effect upon the health of the economy. Indeed, younger people with degrees, who should have disposable income and the ability to buy homes, cars, etc., are unable to make these sorts of purchases. Even worse, some of these individuals, and we're not just talking about young, educated Americans, are barely surviving. (Incidentally, I wrote an article titled, "Young, Educated, Indebted Americans Unable to Purchase Homes," over a year ago about this very topic. In that piece, I interviewed Rick Palacios, Jr., a senior research analyst, at John Burns Real Estate Consulting (JBREC), who discussed the problem of young people being unable to buy homes and who are finding that they have to move back home with their parents after graduating from college).

Some aren't even fortunate enough to have the option of moving home. For instance, on my Taegan Goddard post, one individual recently explained:

I wrote my congressman. I told him how I am a master's degree holding homeless person who lives out of my car because my payments are over 80% of my income. I explained that at no point throughout my education did I ever qualify for grants. His reply? "I support education. See if you can get a grant." .........um........ Clearly he didn't read my message, doesn't care and is completely out of touch with the common person. I have to rely on this individual to represent my interests and it scares me to death.

Cryn, you mentioned having hope for our cause after speaking with key people on the hill [sic]. I certainly hope your feedback was better than mine. We're dying out here. Literally.

These notes are beyond infuriating. Who in this office decided to send out a form letter about the Congressman supporting higher education? How is that, in any way, related to a person who is homeless with a master's degree, and has student loan payments that are over 80% of his/her income?!? This response illustrates how sorely out of touch most policymakers and politicians are in D.C. In the very least, the staffer in this office could have sent a letter expressing regret about this debtor's predicament. But I guess that's expecting too much, isn't it?

That said, I do believe it is critical to hold onto hope. After all, this crisis could easily be solved. In my view, it is critical to remain focused on the solutions, rather than going on over-drive on the critiques. Of course, the critiques should continue, but they should be followed with a set of viable solutions. On that note, shortly after the elections in November of 2012, when strong leaders like Elizabeth Warren won, I wrote - yet again - a short, policy-oriented piece over at Spare Change News that offered sensible solutions for student loan reform. I'd like to know if any offices on the Hill are considering these approaches. After all, there are several that I know for a fact care about the student lending crisis. Surely, the topic is no longer too hot to handle, as it was several years ago when I made some of my first visits to the Hill. But perhaps I am mistaken . . . 

One thing is certain, the focus on solutions is something you'll find in my forthcoming book, Higher Ed, Greater Debt.

How do you think we can solve the student loan debt crisis? What other plans could be implemented to help struggling borrowers?