Occupy group calls on people to default on student loans

A faction of the Occupy Wall Street Empowerment and Education working group has called for one million people to join a pledge to default on their student loans.

The Occupy Student Debt Campaign, which is comprised of students, alumni and current faculty from schools across the country, aims to challenge the rising crisis of student debt and make people aware of the injustices of the current higher education infrastructure to the public, according to a statement from the group.

Supporters of the campaign may sign one of three available pledges: one for people who currently owe student loans, another for current faculty members and one more for people without debt who still advocate the cause, according to their official website.

The campaign’s four main principles include: federal funding for all public educational institutions, interest-free student loans, the ability of students to know where their tuition dollars are a promise to refuse payment of their student loans.

“I’m concerned about the privatization of public schools and the strain it puts on faculty members and students,” said Hillary Goodfriend, a founding member of the campaign and current NYU student. “But this is broad project, it goes beyond just alleviating debtors. The aim is make everyone aware of the problems associated with student loans.”

According to the Project on Student Debt,

In 2008, 1.4 million American students, or 67 percent of the group, who graduated from four-year universities had some student loan debt.

For public universities, the average debt was $20,200 – a 20 percent increase from 2004 when the average was $16,850.

“The underlying problem here is that the government, institutions and lenders have been shifting the burden,” said Pamela Brown, founding member of the group and current graduate student of sociology at The New School for Social Research. “They’ve taken the government’s burden of grants and put it on students in the form of loans.”

This was an intentional shift, Brown added.

“Tuition has gone up while lenders increase their profits, and our government has had a hand in this by stripping away the students’ ability to file bankruptcy on their debt,” she said.

The overall amount of money owed from student loans is approaching $1 trillion, an amount that trumps the nation’s total credit card debt, according to a report from NPR.

Participants plan to pop this bubble by refusing to comply.

“We can continue to pay and make it worse for future generations,” Brown said. “Or we could take a stand and take the power back.”

In the 2009-2010 academic year, 48 percent of Californian students graduated with an average debt of $18,113, according to the Project on Student Debt. CSUN faces similar numbers as 40 percent of its students graduate with a debt of $15,582.

“The hope here is that no one will actually default,” added Brown. “We just want to gain enough momentum to change the system.”

Though the campaign wants the to wipe the current student loan debt clean by gaining as many protesters as possible, they won’t fret if their goal of a million participants isn’t met.

“It’s not about reaching a million people or the collective default,” Goodfield said. “It’s about having a national intervention about student load debt.”

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  • Anonymous

    Costs of higher education can be decreased. University of California Berkeley Chancellor Birgeneau hijack’s all
    our kids’ futures.

    I love University of
    California (UC) having been a student & lecturer. Like so many I am deeply
    disappointed by the pervasive failures of Birgeneau from holding the line on
    rising costs & tuition increases. On an all in cost, Birgeneau has molded Cal. into the most
    expensive public university.

    Paying more is not a
    better education. Instate tuition consumes 14% of Calif. median family income! Faculty wages must reflect California’s ability to pay, not what others
    are paid.

    Chancellor Birgeneau ($450,000
    salary) dismissed many much needed cost-cutting options. He did not consider
    freezing vacant faculty positions, increasing class size, requiring faculty to
    teach more classes, doubling the time between sabbaticals, freezing pay &
    benefits, reforming pensions & health benefits.

    Birgeneau said such
    faculty reforms “would not be healthy for Cal”. Exodus of faculty, administrators: who
    can afford them?

    We agree it is far
    from the ideal situation. UC Berkeley cannot expect to do business as usual:
    raising tuition; granting pay raises & huge bonuses during a weak economy
    that has sapped state revenues & individual Californians’ income.

    Birgeneau can bridge the trust
    gap with alumni, donors, politicians, and the public with reassurances that salaries
    & costs reflect California’s
    ability to pay.

     
    Chancellor Birgeneau’s
    campus police deployed violent baton jabs on students protesting increases in
    tuition. The sky above UC will not fall when Chancellor Birgeneau ($450,000
    salary) is ousted.

     
    Opinions? Email the UC Board of Regents  marsha.kelman@ucop.edu

  • Anonymous

    This is a scam.  Lawyers are urging this nonpayment action to get more work for themselves.  A legal assistant heard that one currently connected law firm expects to make millions from the current Administration urging people to default on student loans.  They make a windfall, while the common man, once again, loses due to ruined credit for the next 7 years.  I am not doing it.

  • Riveraveguy

    The American Hating, law breaking Marxist on Campus have dreams of Heaven

  • David the small-L libertarian

    News alert!:  The federal government took over the student-loan business over a year ago.  It was part of Obama’s socialist agenda.

    “The underlying problem here is that the government, institutions and lenders have been shifting the burden,” said Pamela Brown, founding member of the group and current graduate student of sociology at The New School for Social Research. “They’ve taken the government’s burden of grants and put it on students in the form of loans.”

    Huh?  How was it ever the “burden” of government to give grants and why is it doing so?  Do you mean burden on taxpayers?  And the students are the ones getting the benefit of their education.  Why should they not be the ones to pay for it?

    What a bunch of ingrates!  Gawd am I tired of this!  Let’s get the government completely out of education from pre-school through college plus the unconstitutional federal bureaucracy that is the Department of Education.

  • AAction

    The education policy experts at the American Action Forum just came out with  3 recommendations on how to put the federal student loan system on the right track. Right now it is a risk to both students and taxpayers. The suggestions include college transparency, private lending > govt lending, and using an accurate scoring methods for loans. Obama needs to listen to the research being done.

    http://americanactionforum.org/topic/federal-student-loan-programs-risks-students-and-taxpayers

    • Vlad

      AAction,

      It does not serve Obama’s political objectives to listing to research being done.

      He benefits(Electorally) from telling students that he’ll give them Free Education, or that he’ll offload their Student Loan burden.

      Vlad

  • Vlad

    Ahh, the Marxist advisers strike yet again.

    Collapse the Student Loan system? Make Education, yet another entitlement? Exactly what our society needs, expanded Governmental provisor of “stuff.”  How easy it must seem to the Professor’s to feed these thoughts into the minds of the young, ill-informed, who already have strong developed sense of entitlement.

    Our [current] culture is made up of a generation of young people who’ve never had for want. In spite of “ideas” that they’re oppressed, today’s young person has been the beneficiary of the fruits of the American dream. Look around; Designer clothes, cars, cell phones(w/ data plans).

    You want to LOWER the cost of Education, simple.

    Eliminate state subsidies. This will provide a more direct relation of the “price” of education to the cost. It will/would reduce the numbers of students in attendance(and given a 50% grad rate, would very likely provide a significantly higher percentage who graduate). Lowered attendance would require State schools to “compete” in the market for students – Increasing quality, and lowering both “cost” and “price.”

    Increase Lending Standards. Giving a loan to EVERYBODY, without regard to a cost/benefit analysis on the student’s ability to pay back said loan, relative to said Major, creates an environement where 40-50% of loans are defaulted on anyway. If allowed to function in the  ”free market” vsrsus government subsidized, significantly fewer loans would be underwritten, placing even more pressure on Institutions to lower their costs.

    Defaulting on Student Debt, demanding more Entitlements increases the costs of Education, not decreases.  Do they not teach Economics any more?

    Vlad 

    • Anon

      They do. Unfortunately you don’t get many students willingly attending the class.

  • old glory

    I think taxpayers should default on paying their taxes. That would close Universities pretty fast save a lot of money and let the poor students get a job. And the best part the faculty would have to get a job where they can get fired.  

  • Anonymous

    Though loans may be more difficult to get than a few years ago, 123 Refinance is still helping plenty of people.  It’s back to common sense underwriting, and guidelines to make the refinance possible for you.

    • jf

      I can guess who you work for. Run your ad somewhere else and pay for the space.