Is Subsidizing Students Smart?
By William Boardman, Reader Supported News
27 July 13
White House supports policy making students profitable to banks.
emember how hard the White House fought to keep interests rates on student loans from going up this month? You don’t? Because the Obama administration pretty much pulled out none of the stops to keep Republicans from forcing student loan rates to double, from 3.4% to 6.8% on July 1.
It’s not that Democrats generally fought off Republican plundering of poor people by profiting off their efforts to educate themselves. The Democrats had the votes in the Senate, at least, to act – but Democratic leadership (an oxymoron) lacked the fortitude to force a simple majority vote. Well, why should student loans be any different from almost anything else that falls under the heading of the constitutional phrase, “general welfare?”
Now (July 23), the White House has such a deal for students who borrow, pushing it on the White House Blog: “We’ve got some good news to share – Senators from both parties have come up with a plan to reduce the interest rates on student loans. Once it becomes law, rates on every single new college loan will come down before the start of the school year.”
White House Pushes Plan to Make Poor Pay Their Own Way
The White House Blog graphic shows those 6.8% interest loans dropping to 3.85% for undergraduates and 5.4% for graduate students. That suggests a class-based attitude that the more you poorer people want to improve yourselves, the more indebted we need to make you before you get into our club.
That’s bad enough for a White House that couldn’t see keeping student loan rates at 3.4% at the expense of banks and government profits. But the smaller print in this “bipartisan plan” blows away any thought of a top rate of 6.8% – instead, future loans will be “capped” at 8.5%-10.5%, which puts some over the traditionally illegal rate of usury (not that that’s been relevant for a while).
This may look to some like a White House bait-and-switch scheme and, as it turns out, some Democratic senators are calling it a bait-and-switch scheme.
Senator Jack Reed of Rhode Island had previously fought to keeps the student loan rate at 3.4%, but his party failed to support that. Now, in an effort to head off the White House deal, Reed has offered an amendment that would achieve a pyrrhic victory of capping the student loan rate at 6.8%.
The Reed-Warren Amendment Has Some Outspoken Support
Co-sponsor Senator Elizabeth Warren of Massachusetts, who objects to charging students at a higher rate than the Federal Reserve offers to big banks: “I understand that compromise isn’t always pretty, but there isn’t any compromise in this bill.” In an email headed “The Whole System Stinks,” Warren wrote: “Senator Jack Reed’s amendment is the only plan on the table right now that guarantees student loan interest rates won’t skyrocket above their current levels.”
Senator Mazie Hirono of Hawaii, who voted earlier in July for the “Keep Student Loans Affordable Act” that Democratic leadership allowed Republicans to kill with a filibuster.
Senator Richard Blumenthal of Connecticut, who said of the White House deal: “This legislation fails future generations of young people, profits off the backs of students, and adds irresponsibly to the $1 trillion of already crushing student loan debt. Instead, we should return to the 3.4 percent rate on subsidized Stafford loans or reduce it to the same rate offered to some of the nation’s largest banks …”
Senator Sheldon Whitehouse of Rhode Island, who sent an email noting that, “Unfortunately, our opponents would rather profit off our students than invest in them.” On his website, he added: “Nearly 8 million low- and middle-income students across the country use Stafford loans…. America is great because we’ve always worked to create more opportunities for the next generation, not fewer. Frankly, I’m stunned so many of my Senate colleagues will fight tooth and nail to protect subsidies for Big Oil but stand idly by as interest rates are set to double on student loans. It is simply the wrong thing to do, and we need to let them know.”
Senator Ben Cardin of Maryland, who notes on his website that “some members of the Senate continue to play politics with student loans …” Cardin and 21 other senators have called for a federal investigation into loan-sharking allegations against “debt relief” companies that exploit students.
Senator Barbara Boxer of California, who emailed on July 24, “The so-called deal on student loans is a bad deal, and that’s why I am headed down to the Senate floor to speak out for students.” The same day, Senator Boxer spoke for close to half an houron the Senate floor making the White House deal’s bait-and-switch crystal clear: “Even as the federal government makes $184 billion off the federal loan program, students and families will be forced to pay more under this bill than under current law.” [emphasis in original]
Why Shouldn’t Government Profits Go to Help MORE Students?
Another amendment to the bipartisan deal on student loans would prevent the government from profiting from student indebtedness by transferring all profits – projected to be about $715 million – to the Pell Grant Program, which gives need-based grants to lower-income students.
Co-sponsor Senator Patty Murray of Washington said of the White House-backed bill, “Every dollar generated from this deal should be a dollar reinvested in making college more affordable.”
Co-Sponsor Senator Al Franken of Minnesota argued that: “We shouldn’t be balancing the budget and balancing our debt on the backs of students. We need to invest in students.”
Interest Rates Going Up for 7,000,000 College Students This Fall
Under any proposal currently before the Senate, some seven million college students will face more expensive student loans when college starts in the fall.
Senator Tammy Baldwin of Wisconsin underscored the bait-and-switch quality of the White House deal: “The bill before us today offers students and families lower student loan interest rates in the near-term but we can fully expect higher student loan interest rates in the years to come. Why on earth would we want to expose our students to higher rates?”
The only non-Democrat voicing clear support for students has been Independent senator Bernie Sanders of Vermont, who said: “We’ve got to get out of the business of making profits off struggling families who want nothing more than to be able to send their kids to college. This legislation only makes a bad situation worse.”
Sanders added, “At a time when Democrats control the White House and the U.S. Senate, we should not support bad legislation almost identical to that passed by a very conservative, Republican-led House.”
But that, with President Obama’s explicit approval, is exactly what the supposedly representative democracy of American government is about to do, or perhaps has done already – making a bad situation worse.
And, as Senator Boxer noted, the president’s policy is making students pay for two wars on the federal credit card, making students pay for an unfunded drug benefit for seniors, making students pay for bailing out dishonest banks, and making students pay for all the corrupt interests who control a majority of the “representatives” of the people.
In Media Spin, This Is a Triumph – As Trampling the Poor Usually Is
[UPDATE, July 25] As anticipated, the Senate bought the deal in a lop-sided evening vote on July 24, after rejecting all amendments. As reported by the Christian Science Monitor (and presumably echoed elsewhere): “Congress is set to notch a significant victory after the Senate passed a bipartisan reform of the nation’s student loan system Wednesday evening with a vote of 81-18.”
The NBC News spin went like this: “After a series of delays, the Senate passed legislation Wednesday to fundamentally restructure government student loans and reverse the sharp hikes in interest rates that went into effect on July 1. The vote was 81-18, with more than a dozen Democrats voting against the White House-backed plan.”
One of the architects of the bill, Senate Democrat Tom Harkin of Iowa, said, falsely (since other views are easily available): “Any way you look at it, this is a good deal for students and a good deal for their families. That’s the way this place should run, on compromise.”
According to CNN: “The Senate on Wednesday approved a bipartisan deal that ensures lower interest rates on loans for students heading to college this fall.”
President Obama, who endorses charging students to pay down the deficit (but not so much people with real money), made an appropriately cynical and misleading statement: “It meets the key principles I laid out from the start. It locks in low rates next year, and it doesn’t overcharge students to pay down the deficit.”
“The White House is being disingenuous and is trying to sweep under the rug big increases in interest rates for students and parents in the near future,” Senator Sanders said in a statement the day before the vote.
In a statement after the vote, Sanders said: “This legislation will make college even less affordable than it is today.”
“We have a middle class which is disappearing. The number of Americans living in poverty is near an all-time high. We have millions of families struggling to be able to send their kids to college. So what is the United States government doing? We are helping to balance the budget by saying to middle-class, working families that if you want to borrow money to send your kids to college we are going to make $184 billion in profits off of you. Let me go on record as saying I think that that is a very counterproductive idea. It is a dumb idea.”
Sanders, an Independent, joined 16 Democrats and one Republican, Senator Mike Lee of Utah, in voting against the bill. Of the ten Democrats named above, all but Franken and Murray voted against the bill, along with Senators Sherrod Brown of Ohio, Kirsten Gillibrand of New York, Patrick Leahy of Vermont, Ed Markey of Massachusetts, Bob Menendez of New Jersey, Christopher Murphy of Connecticut, Debbie Stabenow of Michigan, and Mark Udall of Utah. Clair McCaskill of Missouri did not vote.
But 81% of the U.S. Senate – most of them multi-millionaires – voted to strip-mine the poor by imposing what amounts to a direct tax on loans to support self-improvement.
Archive for July, 2013
We have attached the job description for the VCAS position that the four finalist will be interviewing to fill.
Please come out to the campus forums to hear their presentation and ask questions.
Stephanie J. Whitaker
From: Staff Official Announcements [mailto:OFFICIAL_STAFF] On Behalf Of Official Announcement
Sent: Wednesday, July 24, 2013 8:55 PM
Subject: [OFFICIAL] Vice Chancellor for Administrative Services Final Candidates
Dear Faculty, Staff, and Students,
I am pleased to announce the finalists for the position of Vice Chancellor for Administrative Services. The four finalists listed below will be at UIC for a campus visit and a public forum:
Assistant Vice President, Business Affairs
Director, Planning and Construction
University of Florida
Campus Visit: July 29
Campus Forum: 2:15 p.m. – 3:00 p.m., University Hall, 601 S. Morgan Street, Room 401 UH
As Assistant Vice President for Business Affairs, Ms. Walker has been responsible for the Division of Facilities, Planning and Construction which includes management of the University of Florida’s Statewide Capital Construction Program, Campus Master Plan, Facility Information Services, LEED and Green Building Program and Minor Construction Program for the Academic Health Center, University Athletic Association (UAA), Direct Support Organizations (DSO), campus auxiliaries and property management of St. Augustine’s State-owned historic properties. Under her leadership, over 3.7 million square feet of academic, research, athletics, student support, office, museum and housing facilities have been built, with over 30 LEED certified buildings including two LEED Platinum. She has been an active leader in the state university system, having served as chairman of the Southern University System Facilities Planners committee and on various Board of Governor strategic planning committees.
Ms. Walker has spent over 30 years of her career in academic institutions, both private and public. At the University of Chicago, she worked in the Development Office and the Medical Center. At the University of Florida, her career began at Shands Hospital as a Senior Planner and an Administrator for Hospital Operations. As an Assistant Vice President for Health Affairs, her major focus was space and facilities management for the Colleges of Dentistry, Health Professions, Medicine, Nursing, Pharmacy and Veterinary Medicine.
Ms. Walker received a B.S. in Management from Nova University and an M.H.A. from the University of Minnesota.
Managing Deputy Commissioner and Chief Administrative Officer
City of Chicago, Department of Aviation
Campus Visit: July 30
Campus Forum: 2:00 p.m. – 2:45 p.m., Richard J. Daley Library, 801 S. Morgan Street, Daley Conference Room (LIB 1-470)
Angela Manning-Hardimon serves as the Managing Deputy Commissioner and Chief Administrative Officer for O’Hare and Midway International Airports. In this position, Ms. Hardimon provides leadership and management oversight for Strategy and Performance Management, Customer Service, Marketing, Media, Information Technology, Human Resources and Labor Relations. She has been with the airports for over 9 years. During this time, Ms. Hardimon has also served as the Managing Deputy Commissioner and Chief Financial Officer. In this position, she was responsible for providing leadership and management oversight for Commercial Development, Real Estate, Planning, Warehouse Operations, Finance, Capital Finance and Contracts Administration.
Prior to coming to O’Hare and Midway Airports, Ms. Hardimon served as Deputy Commissioner of Finance and Administration for the City of Chicago Department of Buildings and the Department of Construction and Permits.
Before joining the City of Chicago, Ms. Hardimon served as a Senior Business Consultant with Parson Consulting Group where she worked with Fortune 500 companies to develop merger and acquisition strategies, migrate to web-based businesses, integrate new information technology into their organizations and revamp businesses through process re-engineering. Ms. Hardimon began her career in the capital markets and spent 7 years with the Northern Trust Company in Global and Wealth Management Banking where she managed portfolios in excess of $1 billion dollars.
Ms. Hardimon has a B.S. in Finance and Management from Chicago State University, an MBA from University of Illinois at Chicago in Strategic Management and Entrepreneurship, a Master’s degree in Project Management from Keller Graduate School of Management and a Certification in Project Management with the Project Management Institute (PMI). She has over 15 years experience in strategy, fiscal and project management.
Director of Facility Support Services, Office of Physical Plant
Pennsylvania State University, University Park, PA
Campus Visit: August 12
Campus Forum: 3:00 p.m. – 3:45 p.m., Richard J. Daley Library, 801 S. Morgan Street, Daley Conference Room (LIB 1-470)
Mr. Scott is responsible for providing full spectrum facility leadership and asset management to Penn State’s Commonwealth Campus system. He is accountable for over 7 million gross square feet across 20 geographically dispersed campuses locations including the Dickinson School of Law, the Hershey Medical Center, and the Energy Efficient Buildings HUB at the Philadelphia Navy Yard.
Mr. Scott is responsible for developing and executing the capital plan and all capital projects, master planning for each location, overseeing major maintenance and campus beautification programs, implementing energy reduction and sustainability initiatives and strategies, and emergency management. In this role, he works closely with executive leadership, faculty, staff, community leaders, state and local officials, and regulatory agencies. Additionally, he has been a key member of the Strategic Planning team for the past 9 years. Finally, as a member of the University’s Diversity Mentor Program, he is proud to be strong advocate for diversity and inclusion in the workplace as well as with the contractor community.
Before joining Penn State in 2001, Mr. Scott was the Director of Project Management at Rutgers University from 1997 – 2001. Prior to that, he served in the U.S. Navy’s Civil Engineer Corps from 1991-1997, during which time he was the assistant resident officer in charge of construction in Twenty-nine Palms, California, and assistant public works officer in Indian Head, Maryland.
Mr. Scott is a registered Professional Engineer and holds a B.S. in Civil Engineering from Pennsylvania State University and a Master of Business Administration from National University.
Associate Vice Chancellor for Student Affairs
Director of Campus Auxiliary Services
University of Illinois at Chicago
Campus Visit: August 14
Campus Forum: 9:15 a.m. – 10:00 a.m., Richard J. Daley Library, 801 S. Morgan Street, Daley Conference Room (LIB 1-470)
Michael Landek is currently the Associate Vice Chancellor for Student Affairs and Director of Campus Auxiliary Services at the University of Illinois at Chicago. Mr. Landek is responsible for the daily operations of the units that support student and campus life including: Campus Housing; Student Centers; Meetings, Conferences and Campus Dining; UIC Pavilion; UIC Forum; Children’s Centers; The Campus ID and UPASS Center; Campus Retail Operations; Campus Recreation and Campus Programs. 350 full-time employees and 500 student employees support these operations in 25 buildings covering 2.7 million square feet, with a combined operating budget of $75 million dollars.
Mr. Landek’s portfolio of responsibilities also includes the management of the $350 million dollar public/private South Campus Development. In addition, he formulated and implemented the Mixed Use Development that includes the UIC Forum and James Stukel Towers Residence Halls. He has focused on identifying opportunities for change and innovation found in projects and services like the campus photocopier rental program and managed print program, the UIC Campus wide OASIS project and the creation of the Department of Meetings, Conferences and Dining Services.
Prior to his current position, Mr. Landek served in various positions at UIC including: Interim Vice Chancellor for External Affairs, Director of Parking Services, Interim Director of Telecommunications and Associate Director of Campus Retail Operations. In his time at UIC he has focused on conceptualizing new services, programs and facilities to support and enhance campus life for students, faculty and staff. Prior to UIC, he was the Director of Retail Operations at DePaul University.
Mr. Landek earned a B.A. in Criminal and Human Justice from Governors State University, a M.Ed. in Educational Administration and a Ph.D. in Policy Studies in Urban Education from the University of Illinois at Chicago.
I would like to extend my gratitude on behalf of the campus to the search committee, chaired by Terri Weaver, Dean of the College of Nursing, for their diligent work in providing UIC with an outstanding list of candidates for the Vice Chancellor for Administrative Services.
I invite students, faculty, and staff to attend all four campus forums, which will consist of a short presentation by the candidate and a question and answer session. RSVP to the forums by emailing Kathy Lesinski, the search coordinator. Please also email Kathy directly if you wish to review the candidates’ full CVs. The confidential online evaluation for the candidates can be found online.
I look forward to your input.
Chancellor, University of Illinois at Chicago
Vice President, University of Illinois
John Corbally Presidential Professor
UNIDOS: Voices from the Arizona Frontlines
Presented by the UIC Latin American Recruitment and Educational Services (LARES) and the Latino Cultural Center
What is the importance of ethnic studies programs?
How can Chicago education leaders and Arizona student leaders unite in the effort to save their educational resources?
Recently, educational programs have been transformed or eliminated in Chicago and Arizona by legislators, which has sparked massive community mobilizations.
Join us for an interactive conversation with Arizona organization, UNIDOS. They are a youth-led coalition of critical thinkers whose purpose is to stand in defense of ethnic studies and all injustices within education.
While defending ethnic studies is the backbone of their creation, they stand as a direct force to mobilize, empower, and educate youth.
when: Tuesday, July 16, 2013
time: 6pm to 7:30pm
where: Latino Cultural Center
Lecture Center B2
FREE refreshments and admission
For more info, please call 312-996-3095
If you require any accommodations please contact the number above before the event.
For directions please visit our website http://latinocultural.uic.edu/infomaps/
The School of Education & Human Development at the University of Colorado Denver is seeking applications for the position of Senior Instructor – Urban Community Teacher Education. The position has been posted to the Jobs at CU online application system (Posting F00521).
Applications will be accepted until the position is filled.
If you know someone qualified for this position, please encourage them to apply!
Jessica N. Morris | HR and Payroll Specialist
University of Colorado Denver | School of Education & Human Development
303-315-0010 |LSC Office # LW-1147 | jessica.n.morris |www.ucdenver.edu
Hope your summers are going well.
Wanted to let you know about an exciting series we are doing in Student Legal Services. We currently have 9 law clerks from law schools, and each of them has been assigned a legal issue to invite a speaker from the Chicago Legal Community to come and present at UIC. These sessions will be live and video recorded, they are open to the UIC community; so please feel free to spread the word to those who may be interested in attending to get information on some of the issues. This is an opportunity for folks to ask questions if these legal eagles as well as a chance for our pre law students at UIC to network. There are 2 additional sessions (on immigration, and vets affairs/people with disabilities), and we will share that information with you as soon as they are confirmed. All presentations are from 3pm to 4:30pm.
-Wed, July 10: Wills & Power of Attorney @ Student Center-East, Room 509, 750 S. Halsted St. Chicago, IL 60607
-Monday, July 22: Bankruptcy @ SSB Financial Aid Conference Room
-Wed., July 24: Housing @ SSB Financial Aid Conference Room
-Monday, July 29: Employment @ SSB Financial Aid Conference Room
-Thursday, August 1: Family Law @ SSB Financial Aid Conference Room
-Tuesday, August 6: Clearing Criminal Records @ SSB Financial Aid Conference Room
– Thursday, August 8: Domestic Violence @ SSB Financial Aid Conference Room
Please feel free to reply with any questions you may have…