Student Debt FAQ

"It's not like they told us it would be."

Why is student debt a problem? Can’t students just work their way through school?

The average student now leaves college with more than $25,000 in debt and enters a labor market where jobs are scarce and the average annual earnings of workers ages 25 to 34 with Bachelors degrees have fallen by 15% since 1990. Heavily indebted students must put off purchasing homes, starting families and opening new businesses in order to pay off student loans. This means student debt not only stops graduates from pursuing their life goals, but it also depresses the economy and thus keeps unemployed people out of badly needed jobs!

What caused the explosion in student indebtedness?

Long-term disinvestment in public higher education has placed the burden of funding college education on students and their families. Since 1980, state governments have cut their funding of higher education by forty per cent in real terms. Because household incomes have stagnated over the past two decades, students and their families have turned to student loans to cover the costs of higher education. Since 1990 these costs have skyrocketed, with tuition and fees at four-year public colleges and universities rising by 112.5 percent.

What happens if I default on my student debt?

Defaulting on student debt can have devastating financial consequences that last for decades. Student debt cannot be discharged through the standard bankruptcy process like most other forms of personal debt. Thus, student debt stays with you for life and even with your estate after you die! To collect on a defaulted student loan, private lenders and the federal government rely on a variety on invasive measures: wage garnishment (up to 15% of disposable pay), the interception of tax refunds, and withholding of future Social Security payments. Fear of default and draconian collection tactics forces many of the 37 million Americans with student debt to take low wage jobs to start immediately making payments. Crushing student debt combined with low-wage jobs means indebted students have little disposable income to spend, further depressing the economy.

What can we do about it?

Demand free higher education for all. College tuition is free in most other industrialized countries and there is no reason U.S. students should be subjected to years of crushing debt for a college degree. We need a social movement that can stand up to the powerful corporate interests who reap huge profits from the current system. Total annual public college and university tuition comes to $80 billion a year; our “defense” budget is $800 billion. This movement must demand meaningful but realistic policy reform that puts us on the course toward universal free higher education. President Obama’s Income Based Repayment Plan allows some students to discharge federally guaranteed debt incurred since 2007 by paying 10% of their discretionary income for 20 years. This is not good enough. Democratic Socialists of America’s Drop Debt! Campaign demands an additional presidential executive order that:

  • Expands the program to all student debtors
  • Allows student loans to be repaid at an annual rate of 10% of discretionary income over a maximum 10 years
  • Expands the program to cover all public and private loans

Starting a Local Chapter from Scratch (9pm Eastern)

October 04, 2016 · 9 rsvps
Webinar, RSVP required for sign in information

So you are now a member of DSA, but there is no local chapter where you live. You are thinking of starting a local chapter, but you're not quite sure how to do it.

In Starting a Local Chapter from Scratch you will learn:

  • how other locals got started in recent years
  • how to find out who is already a member
  • the importance of a comrade
  • how to recruit new members
  • the importance of a mentor
  • how to become a recognized organizing committee
  • how to become a chartered local
  • what works best to bring new people in.

Join us for our latest organizing training for democratic socialist activists: DSA’s (Virtual) Little Red Schoolhouse.

Instructor:

  • Steve Max, DSA Vice Chair and one of the founders of the legendary community organizing school, The Midwest Academy

Training Details:

  1. Workshops are free for any DSA member in good standing.
  2. You need a computer with good internet access.
  3. Your computer must have preferably headphones or else speakers; you can speak thru a mic or use chat to "speak".
  4. If you have questions, contact Theresa Alt talt@igc.org 607-280-7649.
  5. If you have very technical questions, contact Tony Schmitt schmittaj@gmail.com 608-355-6568.
  6. You can participate in every webinar or just attend once in a while.
  7. Workshops will generally be on weekends or evenings.
  8. Participation requires that you register at least 45 hours in advance -- by midnight Sunday for Tuesday's webinar.

NOTE: This training is scheduled for 9:00pm Eastern Time (8pm Central, 7pm Mountain, 6pm Pacific, 5pm Alaska, 3 pm Hawaii).

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DSA New Member Orientation Call

October 19, 2016 · 24 rsvps
DSA New Member Orientation

You've joined DSA - Great. Now register for this New Member Orientation call and find out more about our politics and our vision.  And, most importantly, how you can become involved.  8 PM ET; 7 PM CT; 6 PM MT; 5 PM PT.

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