Tag Archives | Student Loans

Chilean Artist, Activist ‘Liberates’ $500 Million Dollars of Student Debt — By Burning It

PIC: Coyau (CC)

PIC: Coyau (CC)

Andrea Germanos writes at Common Dreams:

An artist and activist in Chile has “freed” university students from their student debt by burning $500 million dollars in debt notes.

The action was the work of visual artist Francisco “Papas Fritas” Tapia, who took the debt notes during a student takeover of the University del Mar, burned them to ashes, and put them on display as an exhibit.

“Authorities began shutting down” the university “last year for financial irregularities and encouraged students to seek out alternative universities,” the Santiago Times reported, but “the university is still collecting on its student loans.” It is slated to close at the end of this year.

Chile has been hit since 2011 by waves of student protests that have denounced the Pinochet-era education policies that have enabled ‘profiteering’ and privatization at the nation’s schools, and have prompted demands for education to be a public good, not a commodity.

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Are American College Students The Coal Miners Of Today?

Via Counterpunch, Darwin Bond-Graham argues that students are positioned at a “choke point” in the debt economy:

Now that we know the debt situation is untenable for an entire generation, what are we going to do about it? UC Santa Cruz professor Bob Meister is advocating the university and the plight of the student as a starting point for a wider movement against debt. Historically students have been galvanizers, taking direct action at seemingly impossible moments. Will they do it now?

Meister compared the students of today to the coal miners of early industrial capitalism. Under that regime of production, coal miners had the power to shut down the economy because they labored away at the site of a singular choke point of value extraction upon which all the spinning looms and colonial plantations depended. Students now occupy a choke point, according to Meister. Student loans are assets in the books of banks and the personal fortunes of the wealthy 1%, used to leverage up debts throughout all other sectors of the economy, debts that penetrate into the social collective and reinforce financial servitude for the masses.

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US Debt Collection Agencies Salivating Over Trillion Dollars in Student Debt

Picture: F.W. Murnau (PD)

Unless you owe money yourself, it  may be hard to understand how quickly having outstanding student loan debt can become an almost unbearable situation. College is expensive, and many young people come to school with a fatal combination of financial naivete and unrealistic expectations of what the job market has to offer a college graduate.

There’s over a trillion dollars in US student loan debt, and it’s a growing industry. Families can on occasion escape from their commercial credit debt: They can foreclose on a home. They can file bankruptcy. Student loan debt is forever, a never-ending all-you-can-bleed buffet for those companies fortunate enough to land contracts from the government.

From RT:

Most US college students hope to land a good job with a high salary after graduation. But for some the reality is very different. Many find themselves faced with insurmountable debt – and a loan industry that’s happy to cash in on their misfortune.

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America’s Student Debt Crisis

Picture: j.o.h.n. walker (CC)

Student debt activists and education advocates Kyle McCarthy and Natalia Abrams are tired of the ‘silence and complacency’ that our elected (and duly bribed) officials exhibit in the face of overwhelming evidence of usury and millions of voices of the disaffected. At least two out of three of students take out loans for college and at least 1 out of 5 of those will default.

Via Huffington Post:

Since 1978, college tuition has skyrocketed by over 900%, while simultaneously, grants and scholarships continue to be slashed. The result? Students are forced to mortgage their futures with student debt, from which there is no escape. In 2010, student debt actually eclipsed credit card debt as the second largest consumer debt in the country (second only to mortgage debt, surpassing $1 trillionin total). The Atlantic recently reported that, since 1999, student debt has increased by 511%.

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Grads Face Spectre Of Student Debt Related Suicide

A fatal peril of life in the 21st century? Via the Huffington Post, C. Cryn Johannsen says:

Suicide is the dark side of the student lending crisis and, despite all the media attention to the issue of student loans, it’s been severely under-reported. I can’t ignore it though, because I’m an advocate for people who are struggling to pay their student loans, and I’ve been receiving suicidal comments for over two years and occasionally hearing reports of actual suicides. More people are being forced into untenable financial circumstances as outstanding student loan debt has surpassed $1 trillion. Currently, 36 million Americans have outstanding federal loans.

I first started appreciating the depth of the problem of suicidal debtors a few years ago, with a post on my blog, All Education Matters, entitled, “Suicide Among Student Debtors: Who’s Thought About It?” I was stunned by the responses. In comment after comment, people confessed to feeling suicidal.

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Students: You Are Exploited Debt-Serfs

LockeEducation1693Charles Hugh Smith writes on OfTwoMinds.com:

Students and parents, wake up: your only salvation lies in political engagement and action.

Of all the exploitative systems in the U.S., none is more rapacious than the Education Cartel. Like the proverbial frog that is unaware that it’s being boiled because the water temperature rises so gradually, college students and their parents are unable to recall what higher education was like before students were herded into debt-serfdom.

Apologists for the Education Cartel like to blame Corporate America or the banks, but the reality is that the Federal and State governments and the employees of the Cartel are willing partners in the exploitation and fraud. How did we get to the boiling-water point where students are expected to take on $100,000 or more in debt to attend college–even a mediocre one?

Answer: immensely profitable Government-backed loans. If the Central State wasn’t partnered with the Education Cartel, today’s debt-serfdom would be impossible.

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