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In a post titled “We’re Breaking Up,” the Student Labor Action Project announced today that three major student activist organizations have cut ties with banks implicated in predatory lending, student loan profiteering, and right-wing political activity:
- The United States Student Association has voted to close its accounts at Wells Fargo, the nation’s second largest private student lender (and the only major US bank to engage in predatory “payday loan” activity.) Wells Fargo’s student loan interest rates range as high as 14.21%.
- The United Council of University of Wisconsin Students has pulled its money from M&I Bank, which contributed more than $46,000 to the campaign of Wisconsin’s notorious governor, Scott Walker.
- And the University of California Student Association has broken ties with major student lender US Bank in the wake of its “lack of willingness to engage in good-faith efforts to negotiate sustainable permanent mortgage modifications.”
That’s three major student organizations in just a few weeks. More to come?
A bill in the Arizona legislature would bar the state’s university system from providing scholarships that reduced out-of-pocket tuition to less than $2000 a year.
Republican John Kavanaugh says that keeping tuition low creates “perverse incentives” for students to enroll in college. His bill, which has 24 co-sponsors in Arizona’s 60-member House of Representatives, would restrict all grants, scholarships, and awards administered by the university, even those funded by private donors.
Students on full academic scholarships would be exempted from the regulation, as would those on athletic scholarships. Asked why athletes were exempt, Kavanaugh said “they contribute to school spirit, and those on football and basketball teams also generate a lot of extra revenue.”
The athletic and academic loopholes, of course, mean that the bill’s largest impact would be on need-based aid.
February 22 Update | The tuition bill, HB 2675, has just been approved by the Appropriations Committee of the Arizona House of Representatives in what Anne Ryman of the Arizona Republic described as a “narrow” vote. On Twitter, Ms. Ryman described exchanges between committeemembers and students testifying against the bill as “heated,” giving the following example:
University of Arizona student James Allen: “You’re making it harder to achieve a higher education degree.”
Representative Michelle Ugenti: “Welcome to life.”
Ouch.
Stockton, California resident Kenneth Wright says a team of federal agents sent by the Department of Education busted down his door without warning yesterday morning, handcuffing him in the back of a cop car for more than six hours. And, he says, it was all because his estranged wife defaulted on her student loans.
The feds, meanwhile, deny that the raid was conducted over a student loan default, but confirm that the squad was sent by the DOE. The department’s Office of the Inspector General, a spokesperson says, “conducts about 30-35 search warrants a year on issues such as bribery, fraud, and embezzlement of federal student aid funds.”
Nearly a dozen students occupied a portion of the Rutgers administration building overnight in defiance of an administration that cut off their access to food and water yesterday evening. The group was able to sneak supplies in via a makeshift pulley system, and say they have no intention of leaving until their demands are met.
The group is demanding that Rutgers’ president endorse a tuition freeze, that new scholarships be put in place for underprivileged and first-generation students, that transcript fees be eliminated, and that the university increase “support for the rights of ALL University affiliated workers.” In addition, the group is calling on Rutgers to implement a new shared governance structure for the university. (A detailed explanation of the demands can be found at the above link.)
The occupiers have a Facebook page and a Twitter feed, and the For Student Power blog has been liveblogging their action since yesterday afternoon.
Is student lending a speculative bubble? Is higher education a scam now? Malcolm Harris makes the case. The whole thing — a cogent, thorough analysis — is well worth reading, but here’s the money quote:
If tuition has increased astronomically and the portion of money spent on instruction and student services has fallen, if the (at very least comparative) market value of a degree has dipped and most students can no longer afford to enjoy college as a period of intellectual adventure, then at least one more thing is clear: higher education, for-profit or not, has increasingly become a scam.
Seriously. Go read.
studentactivism.net 
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