Student loan slavery

July 6, 2012

By John Seiler

I tell youngsters all the time: Don’t go into debt for college!

Not that they listen to me, any more than I listened to my elders when I was their age. At least when I was in college, 1973-77, college debt was almost unheard of, so we couldn’t commit that folly. And expenses were much less because the college-university-government axis hadn’t jacked up tuition so much to pay the salaries of bloated administrators and pampered profs.

Yahoo News has some new horror stories:

“The total amount of student loan debt in the United States is estimated to be between $867 billion and $1 trillion dollars, and default rates for student loans continue to rise. In 2012, the majority of unemployed Americans had at least some college education—the first time in our nation’s history this has occurred.”

So you get $100,000 in debt — and can’t get a job. And the government won’t let you go bankrupt and be forgiven the loan. Interest rates keep pushing up the total you owe. You’re a slave.

“On Tuesday, Republican and Democratic leaders in the Senate announced they had reached an agreement on a bill to continue subsidizing student loans, keeping interest rates at 3.4 percent rather than letting them rise to 6.8 percent.”

It figures. It’s a bipartisan scheme to make matters worse for students and better for banks. The banks get money for close to zero interest nowadays, and make 6.8 percent off their student-slaves. The government — us, the taxpayers — subsidizes that down to 3.4 percent for the kids. But that’s still high if you have $100,000 in debt and no job. No wonder banks contribute so heavily to political candidates.

Contributors

Here are the top contributors to Mitt Romney’s campaign in 2012:

Goldman Sachs $593,080
JPMorgan Chase & Co $467,089
Bank of America $425,100
Morgan Stanley $399,850
Credit Suisse Group $390,360
Citigroup Inc $312,800
Kirkland & Ellis $264,302
Wells Fargo $237,550
Barclays $234,650

Banks, banks, banks.

And here are the top contributors to President Obama’s campaign in 2008:

University of California $1,648,685
Goldman Sachs $1,013,091
Harvard University $878,164
Microsoft Corp $852,167
Google Inc $814,540
JPMorgan Chase & Co $808,799
Citigroup Inc $736,771
Time Warner $624,618
Sidley Austin LLP $600,29

Banks and universities.

The banks mostly left Obama this time in 2012:

Microsoft Corp $387,395
University of California $330,258
DLA Piper $306,727
Google Inc $271,300
Sidley Austin LLP $257,296
Harvard University $232,158
Comcast Corp $201,606
Stanford University $188,290
Time Warner $183,614

High-tech companies and universities this time around.

Back to some horror stories of the student slaves in the Yahoo story:

‘”Student loans have basically ruined my life,’ says Tanya Carter, who graduated from the University of Toledo in 2008. She went to community college for two years before transferring, and attended classes part-time so she could also work. When Carter maxed out on federal loans, she turned to private loans to finish her degree. As a result of all that debt, she writes: ‘I never see myself owning a home, vehicle, or maybe not even getting married.'”

She’s a slave to the government and the banks.

“The need to delay starting a family because of financial worries was a common concern. Lauren Dollard graduated from Fordham University in 2008 with $157,000 in debt, including interest. ‘My boyfriend won’t marry me because of my debt,’ she says. ‘He doesn’t want it attached to his name (I know, this could also be an excuse).’ She said she would trade her ‘fancy private school education’ in a heartbeat to live ‘as an independent adult.'”

What a horror story. Why is America doing this to its kids?

“April Flores graduated from San Diego State in 2008 with $80,000 in private loans and $30,000 in subsidized loans. ‘It is going to be hard to buy a house and start a family with our debt,’ she writes. ‘We joke and say that our baby is Sallie Mae, but it is true! Education is invaluable, but I was not wise in my early 20s and did not make the right decisions when it came to my private loans.'”

So, all these kids have been destroyed by the parasitic banks, government and universities.

The solution

My solution to this is simple: Invoke the 13th Amendment, which stipulates:

“Section 1. Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.

“Section 2. Congress shall have power to enforce this article by appropriate legislation.”

Invoke the 13th Amendment by letting kids declare bankruptcy from their student loans. Congress could do that by passing a single law allowing it. And with less money available, universities would have to start cutting tuition, and with it the bloated pay, perks and pensions of the profs and administrators.

The banks would suffer. But right now they’re vampires sucking the blood out of these kids. And the banks would be disciplined to not trick the kids into taking out such heavy debt in the future.

Free the students!

27 comments

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  1. Prattle On, Boyo
    Prattle On, Boyo 6 July, 2012, 15:48

    It’s a nice thought, but just like campaign reform and bringing the Fortune 500/Wall Street to heel, it’ll never happen.

    Reply this comment
  2. David in Irvine
    David in Irvine 6 July, 2012, 16:55

    Let the colleges co-sign the loans and put them on the hook as well.

    Reply this comment
  3. Rex The Wonder Dog!
    Rex The Wonder Dog! 6 July, 2012, 18:48

    Student loan laws are unconstitutional.

    There is no Statute of Limitations which violates the Due Process clause, as well as the contracts clause, and the non dischargability in BK is also unconstitutional becuase the term “undue hardship” (needed for discharge) is vague, ambiguous and overly broad. I fought these argumenta all the way to the SCOTUS and the courts rubber stamped any argument/thing the gov put on the docket.

    Reply this comment
  4. Donkey
    Donkey 6 July, 2012, 18:53

    Everyone afilliated with higher education is overpaid and under-worked. The entire system is about debt on one end, and money on the other. I remember when it was all about knowledge and learning. I went to UCLA on a fraction of what the kids today are being asked to pay, and I recieved a better return. 🙂

    Reply this comment
  5. Rex The Wonder Dog!
    Rex The Wonder Dog! 6 July, 2012, 19:01

    Colleges should have to carry their own paper-tha would cure all hte problems and scams…B

    TW the so called “default” rate, totally bogus-the gov only uses the FIRST TWO YEARS to measure defaults, if you don’t default within that time period-the so called Co-Hort default rate- then the gov will never list you as defaulting.

    The TRUE default rate is about 33%, in some schools, like certain HBCU’s- it is 50%-75% because those studnets have a harder time getting jobs.
    BTW-it takes 9 months to officialy default on a student loan, whihc narrows that time window to only 15 months.

    Reply this comment
  6. Bob Smith
    Bob Smith 6 July, 2012, 22:16

    You may recall that the anti-bankruptcy statutes for student loans were part of the bill that created the Obama-led government takeover of the student loan industry. When private parties were the lenders bankruptcy was ok. Now that government is the lender, bankruptcies are not permitted.

    Do not forget that just because you can’t file bankruptcy doesn’t mean that they’ll come after you. It’s only government money, after all. I predict that in the end the lack of bankruptcy will be meaningless, government will have no will to actually call these borrowers to the carpet on their nonpayment. The Federal student loan program will in effect be another Solyndra.

    Reply this comment
  7. Rex the Wonder Dog!
    Rex the Wonder Dog! 7 July, 2012, 00:06

    You may recall that the anti-bankruptcy statutes for student loans were part of the bill that created the Obama-led government takeover of the student loan industry. When private parties were the lenders bankruptcy was ok. Now that government is the lender, bankruptcies are not permitted.

    Bob, you’re 100% wrong on every point.

    The non discharge in BK started in 1978, based on bogus claims from Salie Mae and and bribes Sallie Mae gave to the Congress, they have been in place for 34 years.

    Private lenders received the same protections in 2005, when BUSH was president under the 2005 BK revisions, which made everyone go through a “means test”. That 2005 bill was WRITTEN by the banking industry, they WROTE IT.

    The reason the laws are the way they are today is for one reason=$$$$$$$$$$$$$$$$$$.

    Big Business bribes the Congress who pass bills to harm the poor and middle class and benfit Big Business. Poor people and the middle class don’t have th eability to buy off the Congress.

    Reply this comment
  8. Rex the Wonder Dog!
    Rex the Wonder Dog! 7 July, 2012, 00:14

    Do not forget that just because you can’t file bankruptcy does not mean that they’ll come after you.

    They can garnish your wags WITHOUT a court order (another due process and contracts clause violation), and they do. They will also garnish your Social Security if you make it that far.

    BTW-when my case was pending at the 9th Circuit and the SCOTUS I contacted Elizabeth Warren who at the time was a BK expert and law professor at Harvard Law School, she was a complete jerk, useless. Warren loves to talk the talk, but when the rubber meets the road she folds like a cheap laundry- she does NOT walk the walk, all she is is a bag of hot air IMO. Her campaign for senate is laughable, she is a bullshit artist, nothing more and I hope and pray she loses.

    Reply this comment
  9. Rex the Wonder Dog!
    Rex the Wonder Dog! 7 July, 2012, 00:16

    They are more than vampires-they are frauds, Sallie Mae fraudulently took my $6400 student loan and jacked it to over $80K in less than 10 years-fraudulently.

    Reply this comment
  10. Rex the Wonder Dog!
    Rex the Wonder Dog! 7 July, 2012, 00:17

    ‘My boyfriend won’t marry me because of my debt,’ she says. ‘He doesn’t want it attached to his name

    Student loans are the only debt that can never be a community debt-it always is limited to the borrower, never the spouse.

    Reply this comment
  11. Rex the Wonder Dog!
    Rex the Wonder Dog! 7 July, 2012, 00:20

    If you want the real low down on the student loan scam contact this guy, Alan Collinge, at http://www.studentloanjustice.org, I used him as one of my expert witnesses.

    Reply this comment
  12. Hondo
    Hondo 7 July, 2012, 16:28

    As a landlord I see many tenants who are basically ‘profesional students’. With so few jobs out there they need a ‘paycheck’ and school loans are it. Just yesterday I took an application from a philosophy major who was living on school loans, no job and he wasn’t looking for one. Didn’t need to, he was getting Obama money. I asked him what kinda job is he hoping to get. “Teaching” he said. Good luck kid.
    I will probably rent to him if he comes up with the money. A lot of that school loan money is keeping many landlords afloat.
    Back in the 1930’s depression there were nooooooooo school loans and the actual unemployment rate was around 15%.
    And there were no SSDI disability insurance either. The number of people getting on SSDI every month now rivals people getting actual jobs. And a huge number of those ‘disabled’ could kick my ass in a fistfight or in chess. And I work every day for them. It is another huge scam.
    The reality of our unemployment situation is far worse than the 8.2% nation wide or 11% in Kalifornia.
    Hondo…….

    Reply this comment
  13. Rex the Wonder Dog!
    Rex the Wonder Dog! 7 July, 2012, 16:49

    Back in the 1930′s depression there were nooooooooo school loans and the actual unemployment rate was around 15%.

    Actually it was 25% Hondo.

    Reply this comment
  14. Hondo
    Hondo 7 July, 2012, 17:36

    Thanx Rex.
    I feel for both you and the girl in the picture up above. Some counsler told her she could get a job as a professional lesbian (I have no problem with her lifestyle by the way). Only a collage is hiring people like her and with all these budget cuts they aren’t hiring. No one in the private sector is hiring professional lesbians.
    By the way, my cousin is gay and is a millionaire many times over in the private sector. He doesn’t have a collage degree or any school loans binding him, or his business, down.
    I love cousin Bobby and am jealous of him too.
    It is criminal for any financial aid officer at any collage to recomend any loans.
    Hondo…..

    Reply this comment
  15. Hondo
    Hondo 7 July, 2012, 17:41

    By the way, when I say ‘professional lesbian’, I mean as opposed to a ‘lesbian professional’. People have no problem hiring a lesbian police officer. Or a lesbian accountant.
    People just have a problem hiring a professional complainer.
    Hondo….

    Reply this comment
  16. Ulysses Uhaul
    Ulysses Uhaul 7 July, 2012, 19:24

    Posting sickness.

    Reply this comment
  17. Rex the Wonder Dog!
    Rex the Wonder Dog! 7 July, 2012, 21:51

    Bridgepoint Education in San Diego, for profit, has 1700 loan counselors and one -ONE- job placement calendar!

    These for profit and most of the non profit schools today are scams ripping ff the public/taxpayers.

    They create these student loan programs with good intention then they turn them into scams, the Congress and the educational industrial complex are basically money launderers, just like public unions and state politicians. The law makers give favorable treatment to their cronies, be it public unions of educational institutions, who them scam the public with student loan scams or inflated comp packages, and then the unions or educational institution kicks back a big part of that scammed money in campaign contribution to keep the scam rolling.

    Reply this comment
  18. Ulysses Uhaul
    Ulysses Uhaul 7 July, 2012, 23:18

    Is therd anything you like?

    Reply this comment
  19. Rex the Wonder Dog!
    Rex the Wonder Dog! 8 July, 2012, 10:53

    I like cutting public employees pensions, like what San Jose is doing right now!!!

    Reply this comment
  20. Ulysses Uhaul
    Ulysses Uhaul 8 July, 2012, 11:42

    Keep positive you have lots to do!

    Reply this comment
  21. Rex the Wonder Dog!
    Rex the Wonder Dog! 8 July, 2012, 15:46

    With San Jose leading the way I am POSITIVE, the sun is shining on the poor an dmiddle class-finally 😉

    Reply this comment
  22. Ulysses Uhaul
    Ulysses Uhaul 8 July, 2012, 16:38

    There are no bright days for grump greedy conservatives!

    Reply this comment
  23. Ulysses Uhaul
    Ulysses Uhaul 8 July, 2012, 17:35

    So mean spirited. Name calling is gosh!

    Reply this comment
  24. Rex the Wonder Dog!
    Rex the Wonder Dog! 9 July, 2012, 18:17

    BAM!!!!!!!!!!!!!!!!!!

    Reply this comment
  25. Rex The Wonder Dog!
    Rex The Wonder Dog! 10 July, 2012, 03:15

    ACCREDITING COMMISSION REVEALS SHOCKING DETAILS. The Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools & Colleges posted on its website today (July 9) its findings in the denial of initial accreditation to Ashford University, which constitutes most of San Diego Bridgepoint Education. Some of the revelations were stunning, even for those who have followed Bridgepoint for years.

    The commission complained of poor student retention, inadequate alignment of resource allocation with educational sources, insufficient full-time faculty, and other deficiencies. Over five years, 128,000 Ashford students withdrew as 240,000 new students enrolled. “This level of attrition is, on its face, not acceptable,” said the commission.

    “Spending on student recruitment constitutes over 31% of Ashford spending, well above spending for instructional costs and services” including administration of financial aid, student services and academic support, said the report.

    The commission found that a core of about 50 full-time faculty members, most of whom were recently hired, served more than 90,000 online students. This is “not sufficient to provide leadership and oversight,” said the commission.

    The commission had warned Ashford of its concerns in May and June of last year. I haven’t yet checked whether Ashford’s parent Bridepoint Education alerted investors of these deficiencies at that time.

    Bridgepoint stock plunged 33.72% on the day, winding up at $14.25

    Reply this comment
  26. Vince
    Vince 25 September, 2012, 13:57

    Would like to find out when you challenged the bankruptcy change to SCOTUS. I have often wondered why I didn’t hear of any such cases all these years but SCOTUS is also quite rigged in my experience so I guess the poeple will just have to take matters into their own hands.

    Reply this comment

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