#OccupyStudentDebt

Student loan debt is in my mind the biggest issue facing our generation outside of the economy/jobs, but they go hand in hand together. If a whole generation of recent college graduates are having trouble finding work in a bad economy, the student loan debt issue will only get bigger.

There is a movement going on that is trying to change things and it is called Occupy Student Debt. They believe, as do I, that it’s about time we fight back against a corrupt banking system that is based off of predatory lending. The borrowers are the victims, not the criminals. The banks are the criminals. The banks offer loans to students at high interest rates then profit from them much more when someone defaults.

So what incentive to the banks have to work with the people? They don’t. Americans have been stripped of consumer protections and with the lack of refinancing rights available to them, we have a generation drowning in debt.

Here’s what we can do…

Posted by:

Justin Burkhardt

Default: The Student Loan Documentary

“Can I get married? Can I honestly have children, because of a loan? And you know I don’t feel like I can do that.”  Those were some of the first words I heard when I was recently given access to screen the 27-minute Default: The Student Loan Documentary. The movie chronicles the stories of student loan borrowers from all different backgrounds and the issues facing them and the student loan industry. Recently, I wrote an article here about President Obama’s newest change to the federal student loan program. As I said, there is also the issue of the many students who had to take out private loans, which are unaffected by the new changes.

The issue of student debt and default is very well on its way to being the housing bubble crisis of our generation. The student loan issue has hit lower-income families hardest, or families who can’t afford to send their kids to college. It used to be that Pell Grants covered around 3/4 of the cost of college, today it’s around 1/3. That usually means that more private loans with high interest rates must be taken out by those from lower-income households where parents cannot help them cover the costs. Lower-income students aren’t the only ones relying on private student loans these days – many from middle class families are using private loans to help obtain a college education. This debt is extremely oppressive to those who get swallowed up in it, but we must start to fight back. Hit the jump to tell us YOUR story…

Posted by:

Justin Burkhardt

Political Quick Hits: October 28th Edition

Here’s your weekly quick look at few developing stories in the political arena:

• The White House announced this week a new plan to help students buried in student loan debt. The plan allows students to consolidate federal loans, changes the interest rate, and limits the monthly payment down to 10 percent of a student’s income. But is that enough? Our article on that is here.

• Do you remember “Joe the Plumber” from the 2008 election? Well, Samuel Wurzelbacher (aka Joe the Plumber) has announced that he will run for Congress in Ohio. He will make his bid as a Republican nominee in Ohio’s 9th district, which is currently being contested by Democrats Marcy Kaptur and Dennis Kucinich due to redistricting. (Politico)

… Continue Reading

Posted by:

Justin Burkhardt

Obama announces student loan change. Is it enough?

On Wednesday, President Obama announced new programs to help ease the burden of students’ college loans. His executive order is meant to help lower monthly payments and help students consolidate their government loans. In consolidation, students will be able to lower their interest rates to 0.5 percent. The plan will limit the amount of of a student loan’s monthly payment to 10 percent of a graduate’s income, which is down from 15 percent. The plan also allows outstanding debt to be forgiven after 20 years, which is down from 25 years.



How much do you owe for school?

Posted by:

Justin Burkhardt

Pay Your Student Loans or Else…

Earlier this week, a story went viral that a SWAT teamed kicked in a door of a person whose estranged wife had not paid her student loans. Many people were outraged, but shortly after the press got wind of the allegations, the story was recanted by statements that the raid had taken place due to misuse of federal funds.

… Continue Reading

Posted by:

Lashunda