Friday, April 10, 2015

Pell and Student Interest Rates Redux?

It is my understanding that the Democrats just might resurrect these two tired themes again for the upcoming election cycle, and if they do, what a mistake that will be. This will narrow the conversation once again at a time when it needs to be widened. The crisis is worsening and yet people still want to focus on trifling matters. I certainly hope they don't do that, but we'll just have to wait and see. And, yes, if you look through my work on here, I did support Pell, but my take on it has evolved and for numerous reasons. The reasons for which are about the outcome and benefits of students, the ones who always lose out in this unjust, corrupted system. It is always about the students and the borrowers.

Meanwhile several AGs are putting heat on the Department of Education, demanding that the loans of the Corinthian students be forgiven. This development is an interesting twist in a intriguing story, one that began with numerous people with guts and courage.

Here's the most significant part about the letter from these AGs:
The letter, written to Secretary of Education Arne Duncan, could be a significant development in the movement to forgive the debts of former Corinthian students. It also lays out a set of proposals that could lend help to indebted students at other schools that have broken the law [my emphasis].
Indentured educated class, keep that last point in mind.


Anonymous said...

The student loan crisis will be dealt with the American way - nothing will be done in terms of legislation until the house of cards that is student loan debt collapses. At that point everyone will point the finger at everyone else and politicians will scream and yell and ultimately the debt will be forgiven. It's growing like a cancer faster than any debt in history.

Anonymous said...

That's like bringing a kitchen fire extinguisher to a forest fire. It's also insulting to those of us living and suffering in student debt. I remember a couple of years back when the solution to student debt was to better inform CURRENT students about student debt with fliers. Genius! Problem solved!

Our total household monthly student debt burden is approaching $4,000.00. This is not a joke. All of our federal loans are in forbearance/deferment and are exponentially snowballing in size while they're accruing several hundred dollars per month in interest as we are making our $800/month private loan payments. We went to PUBLIC universities. It always has been the case that the payments were *just* out of reach for us so we'd either go back to school or put them in forbearance, thinking that "in a few more years when we make more money, we'll be able to afford them." Ten to 15 years of this later, we're living in a one bedroom apartment sharing one car. My husband is middle-aged and I almost am, too.

Again, we went to PUBLIC universities. Anyone who thinks that this problem is limited to current student borrowers or for-profit college students is delusional. Any politician who claims so is lying because they know better, they just don't want to be the one to pull the plug on it.

I, for one, am tired of having NO money. You can "survive" for a long time but at some point, you've had enough. You start to lose your mind. Pinching, pinching, pinching and it still isn't enough. A year of homelessness and it still isn't enough. Working multiple jobs and it still isn't enough. Putting off a family and a home for decades and it still isn't enough. Since when do banks get to dictate when we have children? I'm ready to throw my hands in the air and follow the Corinthian student lead. Problem is, we can't default or my husband will lose his job. :-(