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Changing the Culture of Student Debt

Posted: 11/18/11 09:55 AM ET

Occupy Wall Street may be an amorphous, platform-free movement. But as the protests that began in New York in September have spread across the United States, and the world, one clear issue of concern has emerged: student loan debt.

For over a year, I've been working on a foundation-funded project that hopes to change America's debt culture, especially among Millennials.

I've begun following the young people on "We Are the 99 Percent" Tumblr, and am taken by their use of handwritten signs with their personal stories. It's a stunning testament in its authenticity, and more powerful than any high-priced ad campaign conceived on Madison Avenue.

"I have $50,000 in student loan debt and my B.A. is useless,"
one wrote.

From another: "Graduated college: May 2010. Debt: $35,000. Jobs in US: None."

Some are resigned: "I am 38 years old. It will take me almost 30 years to pay off my student loans (in 2023)."

Others cry out: "I am 24 years old and am $90,000 in debt from getting a college education. Why are we being punished with debt for getting a higher education?"

The trends are converging into a perfect storm: rising college costs, an increasing need for access to higher education for low-income students, more borrowing and fewer entry-level jobs for new graduates.

The student debt issue is not going away. It's too pervasive, and it puts pressure on higher education to prove out that a college education pays off.

We live in curious times. Some of the things we've taken for granted for so long in American culture are being questioned, in particular the power of education to change a striver's lot. What we are witnessing is a re-organization of our belief system about what it takes to get ahead.

I feel fortunate to be living in these times... no matter how unsettling.

People are finding their issues and raising their voices.

In a democracy, that's a good thing. We can all believe in that, right?

 
 
 

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Occupy Wall Street may be an amorphous, platform-free movement. But as the protests that began in New York in September have spread across the United States, and the world, one clear issue of concern ...
Occupy Wall Street may be an amorphous, platform-free movement. But as the protests that began in New York in September have spread across the United States, and the world, one clear issue of concern ...
 
 
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05:44 AM on 11/20/2011
And until we change the Ayn Rand thinking and begin to value education as a public resource rather than strictly a personal one we'll continue to have high cost and mediocre results
01:19 PM on 11/19/2011
some of us grew up believing a college education was a privilege--not a right--we also were taught that if you incur debt you pay it. that being said--the high cost of a college education is the fault of the academic culture and university sports. Tenure and housing for what? showing up for a few years rather than results based. Full scholarships,housing, meals and immunity from paying anything if you can preform on a sports field. oops-atheletes do have to pay dearly if they get hurt. coaches with multi million dollar salaries--new multi million dollar stadiums--not all universities are in this category but too many are.
12:56 PM on 11/19/2011
I started college in 1978, and 5 quarters @ a private Christian college cost ~$6,000 total for everything. I then transferred to a large state university and the tuition was so much per hour until you got to 10 hours (full-time) and then it was a flat fee of $178/quarter!!!! Of course books were expensive, but room and board and fees were reasonable. Most students lived at home and commuted. I had academic scholarships and I worked to pay for all of it. (My apt rent was $100/month, including utilities, and my car payment was $99/month). My parents did not pay a dime, except my car insurance, which was a whopping $50/month.

Now my son is a senior @ the same private school I went to and his tuition is $11,000/semester (more than my entire education cost) plus food, dorm, fees and books. My daughter is a sophomore at the same state school and it costs ~$6,000/semester plus fees and books. Do I think they are getting that much better an education than I did 30 years ago? NO! But the athletes sure have better amenities and the students live in nicer dorms, have work-out facilities and pools.
11:36 AM on 11/19/2011
I suppose it will take mass student protests, police billy clubbing them to disperse the same protest, and shooting the protesters in the back as they run away for some real change to happen, perhaps just like the strikes during the 1st half of the 20th century.

Students need to be really angry, and desperate for some real change.
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HUFFPOST SUPER USER
frank day
Republican = FAIL
11:14 AM on 11/19/2011
What does it say about our political system

that Citizens must stage protests

to have their concerns heard???
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somewhatodd
micro-bio undetectable to the naked eye
09:16 AM on 11/19/2011
in the short run, the fed should have long since bought all students loans and shredded them. the fed pumped new free money to exactly the wrong people.

in the long run, we need to re-subsidize education and reinvigorate our progressive tax system. that's how it worked in the past. you got a cheap education up front thanks to the taxpayer, and then you paid higher taxes on your higher earnings, thus making a profit for the public's investment.
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HUFFPOST SUPER USER
frank day
Republican = FAIL
11:15 AM on 11/19/2011
Glad somebody else "gets it" :))
11:16 PM on 11/19/2011
Wrong.

We need liberty. We need to stop forcing the society at large to subsidize the graduate studies of ethnic studies students. We need for the people who are receiving the service, to pay for the service. Then when the education marketplace gets a healthy dose of reality and competition, prices will go down, and service will improve for the consumers (i.e. students).

It is exactly like the computer or cell phone marketplace. Competition and that dirty word "greed" are the tools that raise the standard of living for all.
Shesme
My micro-bio will no longer be silent
12:04 AM on 11/20/2011
Wrong, Sean. Trying to be competitive and building fancy new sports complexes forced the colleges to borrow. They raised tuition to get the students to service the school's debt and here were are now.
03:11 AM on 11/19/2011
Financing your college education with student loans is no different from indentured servitude. Count the cost of repaying your loan over whatever time, now scheduled for as long as thirty years (that's a mortgage without owning or living in the house, isn't it)? Parents of college bound students, if your kids are unwilling or unable to figure out how much their four years is going to cost them down the road, consider that many of them will be coming back home to live with you in short order, with their proud new diplomas, but unemployed and maybe unemployable, carrying their brand new lifelong debt on their backs. For your own self protection, get involved with your kids in their plans for their future. What are they majoring in? Are there employment opportunities in that field? How do they (or YOU) plan to pay for student loans when the time comes?
04:00 AM on 11/19/2011
Unfortunately Dr. Thomas, it seems that some of them pay through prostitution.

http://freeeducationforfreepeople.blogspot.com/2011/11/female-students-pay-off-debts-by-dating.html

I doubt that these young women would do that for a car which can be discharged in bankruptcy. With no jobs, the majors don't matter. It's a disaster and the banks, government, and universities bear the blame.

There's always an extra handout to rich old bankers but never enough for poor young women.
02:12 AM on 11/19/2011
The funny thing is that folks can accumulate a level on debt on par with 4-5 years of higher education with just a brief stay in one of our nation's hospitals.
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HUFFPOST SUPER USER
frank day
Republican = FAIL
11:16 AM on 11/19/2011
Very true but not funny !!!
05:25 PM on 11/18/2011
This vague article seems somewhat antiquated. Whatever the author has in mind, she'd better hurry up because events are moving much faster than her perspective.

What we're actually witnessing is the second stage of a world economic depression and student debt is just a part of the picture. Youth are justifiably in revolt in the US, in Europe, and in the Middle East. Anything that puts the onus on student "millenials" for a "debt culture" dangerously misses the much larger currents of our time.

A predatory relationship between the US government, banks, and universities has brought about the current student debt crisis. At the heart of the problem, public universities have been defunded while government monies have gone to subsidize private banks and privatizing universities. That's the real "culture" that needs changing. In short, public money goes to build private fortunes.

Students are largely vehicles for the transfer of wealth. It's time to stop treating them as "bad consumers" of a "commodity"; in fact, it's deceptive.

Students and graduates with debt are human beings and citizens who have been deprived of public investment and their right to an education.
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HUFFPOST SUPER USER
frank day
Republican = FAIL
11:17 AM on 11/19/2011
"A predatory relationsh­ip between the US government­, banks, and universiti­es "

To that I'd add big oil and healthcare.
11:20 PM on 11/19/2011
Nobody has a right to an education.
T-Haight
What was wrong with federalism?
04:57 PM on 11/18/2011
Wow, most of the people on that blog need to learn to write more legibly and compose their shots better. You can't even read their epistles.

The amazing part is how the petty perveyors of those problematic philippics fail to fully understand that their undervalued undergraduate credentials qualify them (candidly) for squat.

Don't go into five or six figure debt for the sake of a degree in a romance language, and don't hold it against those of us who knew better.

I am part of the 60% who don't agree with the 99%.
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Pavane
I pick my battles and walk from the rest.
02:28 AM on 11/19/2011
What you are proposing is the death of culture, human understanding, arts and languages. Yay.

This will REALLY make us better as a society and civilization.

Won't it.
tazmodious
Left Hand of Darkness
09:06 AM on 11/19/2011
Given that he was the first one to make a comment on this blog, I wonder who he is talking about and to whom?

Very strange.
T-Haight
What was wrong with federalism?
09:42 AM on 11/19/2011
Eh, that's a side effect, not a proposal. People are going to have to realize at some point in the future that arts and humanities degrees are no longer worth the money you pay at anything less than a top-tier school. Professional degrees (e.g., engineering, science, architecture, economics, accountancy, pre-med) have real value that justifies their high cost, even at medium-tier state schools. Back when college costs were lower relative to income, perhaps those arts degrees deserved their price tags - no longer.
tazmodious
Left Hand of Darkness
09:04 AM on 11/19/2011
"I am part of the 60% who don't agree with the 99%."

I'm trying to figure out how he does his math.
T-Haight
What was wrong with federalism?
09:43 AM on 11/19/2011
I read the news (http://www.guardian.co.uk/commentisfree/ana-marie-cox-blog/2011/nov/16/has-ows-popularity-peaked).

Only about 33% say they agree with OWS and the "99%" now. I count myself among the 67% who do not.