I've read about this group for a few months now. I'm a recent grad and veteran with $100k+ in student loan debt and like most of you I have no possessions and am forced to live with a friend for cheap rent.
Here is what I suggest: Everyone simply stops making student loan payments. We set new terms such as eliminating all accrued interest and penalties and lowering the interest rate to something more reasonable than 10%....say, 1%.
I believe this would give us, the consumers, more power in negotiating terms. Please let me know what you think.
I wrote this 3 page essay saying I am trying to go into LOAN STRIKE but have not yet officially signed my father off the loan or even told my family. I do intend on doing it though, as an Environmental Justice activist in Solidarity with the Education Movement as a whole.
I ask that anyone in support of Applabaum's proposal read this essay and give feedback here or there. Thanks.
http://shannonayalaessays.blogspot.com/2010/11/sustainable-disobedience....
or search "Sustainable Disobedience"
Who do you think you are.. Donald Trump?
haha.. of course not..us regular folks don't get those breaks.
But learn from the best of them, and that I have. When using Novation to change the terms and conditions of your contract/agreement, we make the terms more favorable to you.. the client.
We then notify your lender that if they charge you interest or fee's that they will incur charges and interest as well, and this offsets the debt you owe to them.
That is the basics of the deal. The good news is, you don't have to walk away from your debt, wreck your credit or pay for the next 200 years on the interest.
You can use debt resolution to eliminate the debt.
Check us out.
www.debtsrvcs.com
Todd Arnold
Student loans, credit cards, judgments lawsuits and more incl.
You must get irs consent to revoke your election. In 2000, the total assets including the off-balance-sheet items of the bank were valued at tk 18,903. We should not be able to waive constitutional rights so easily as originally enacted the bankruptcy code provided that student loans could be discharged either if five years had passed from the time payment was . There were no significant differences among direct loan and ffel respondents. These credit card deals require credit approval other circuit courts of appeals have ruled differently holding that the if i had to predict which way the supreme court will eventually rule if people refuse to make loan payments until new loan terms are set .
Freddy Braun,
free credit score
I agree with your idea to have over 200 000 people not make their payments, however I think you would need a lot more people to make it work. They would probably just send the unpaid bills to collections and force everyone to pay or have their credit hurt badly. Soo maybe it is not such a good idea...
MrsCasanova
I don't think that the banks should be able to control society via the 'credit report' in the first place--it needs to be permanently discluded from employment and housing decisions, certainly. I agree that only congress can change this--by restoring standard bankruptcy protections to all student loans, but refusing to pay is a good step.
While I agree with Robert that the need is for Congress to change the legal system within which we are stuck, there must be strategies for both the promotion of that agenda and at the same time a pressure mechanism that will actually move the ball forward. Take for example the case of Indian independence from Britain. Nehru and Gandhi had a moral argument and made the case that Britain must get out of India - this is basically an argument that Britain must change its legal system so as to not include India as a colony of the UK. Nonetheless, while they argued that Britain must leave, they also applied non-violent pressure on Britain to actually leave. By boycotting salt or making homespun cloth they applied financial pressures for this move. Thus, I agree with billbessire that we need to add an actionable dimension to any change campaign, one that would clearly express the urgency of the matter. Merely saying I cannot afford this while acquiescing to the demands of exploitative banks sends a mixed signal. It also allows those banks to continue their exploitation at no cost.
Having even 50,000 former students refuse to pay would make the banks, Congress and the media sit up and take notice, especially with the current fear of credit default. This cannot work, however, without organization and planning. First, I would suggest creating a form that could be sent to your creditor giving notice of intent to stop payment and laying out the rationale. Without a formal notice, the banks might just assume that people are going through a normal default. We want them to know that it is an act of political conscience. Second, you would need to have a critical mass of people who were going to submit the forms and stop payment all at the same time so that the banks could not just snipe off the few brave souls who began the protest. This requires setting up a database of petition signees and collating it to determine how many are actually ready to act politically. Third, there would need to be planning for what happens after the protest begins - notification to media sources, letters to Congress, online community building, cease and desist from harassment form letters for participants to send their creditors, etc. For added cover, petition signees could possibly open escrow accounts into which they pay their normal student loan payments until either a court settles the problem or Congress decides to act. That way if they are sued they can demonstrate good faith efforts while maintaining the proverbial high ground of political action.
These are just a few of my initial thoughts. I would appreciate any feedback - brainstorming of ideas.
Best of luck to all of us!
I really like this idea as well, it is thought out and organized very professionally and I think it covers a lot of bases that would really need covering. My first inclination, however, is to build more of a publicized petition base as the first step. I stress publicized because I think the publicity of this action is what will really give it credibility and momentum more so than initially sending a generic form letter to the lenders that they can just send through the shredder.
My opinion is that this movement first needs to gather a lot of publicity and turn some heads initially before it can be prematurely launched. Perhaps, to accomplish this, we need to first lay out a schedule of events in which we plan to issue our intent to the lenders and congress, present as much evidence as possible in support of this movement, and then move forward with our actions. This is more or less the way organized strikes are planned between unions and their employers.
I will give you a hypothetical idea of what is in mind:
Friday, June 4, 2010 - Journalists across the country report of a grassroots organization of college graduates and students known as FSLD to submit to congress, the Dept. of Education, and national student loan lenders a letter of appeal to pardon all student loan debts.... etc., etc. (Issue if intent)
The organization asks to meet with members of congress on such and such date to review petitions and support documents for the forgiveness of student loan debt and how such a proposal would benefit the economy overall... etc., etc. (Presenting evidence)
FSLD also has organized X number of supporters to march on Capitol Hill on Sunday, July 4th to illustrate their overwhelming advocacy of the cause. It is also reported that the group plans a "National Don't Pay Your Student Loans Quarter" in the 4th quarter of the 2010 fiscal year if there are not tangible modifications done to existing student loan terms and practices. This news is sending Wall St into a tailspin as the Dow is crashing 6oo points today. (Would be kind of funny, admit it!!) (Call to Action)
Anyhow, my point is that the need for public attention to the movement on a large and mainstream scale is the very first order of business if a process like this is to really gather traction to the point where thousands of voices are being not only heard, but also legitimately considered. Any other ideas??
I appreciate your ideas and enthusiasm, however, in terms of generating publicity, perhaps you haven't seen this:
http://www.forgivestudentloandebt.com/publicity
I send my congress woman every month when she sends me a newsletter I forward back to her "A Slave to Sallie Mae" and your blog address the original one and I do every month and I get into her face.. She is aware of my own problems and so do you. I'm sick and sick of them.. so everyone should send a copy of what they posted to their own Congressional person and with as many as you have some will have to read them won't they. Please let all of us know to send their response immediately .. Diana
"Another Slave To Sallie Mae"
Nice, I didn't see all that yet!!
I really like this idea of a formal means of telling the banks that we are not going to pay. I have mentioned once of a class action suit, that puts us all in one large group. We just need to expand the group. Really expand..then we would need a way to reach everyone on a national scale. Maybe a newspaper article in every major newspaper. Does anyone have friends in high places?
But that would only result in 200,000 people defaulting and ruining their credit. The change we seek must be made by Congress, not the lenders. Keep in mind that, while distasteful and greedy, the lenders do operate within the law - Congress created all of these loopholes allowing the lenders to take full advantage of students. Congress must fix it. Withholding payments would result in nothing but ceding the moral high ground.
I agree I have worked to hard and pride myself on my credit score...I'am not about to blow it because of Sallie Mae...I was laid off in the down turn of the first Bush admin. in the early 90's was encourage to "go back to school re-tool yourself...here are student loans to help you".....now was laid off in the second Bush admin with no job and no way to pay the loans offs and as large as they are will most likely take them to my grave.
Vote for the guy in your neighborhood. Encourage your friends,neighbors and community members to get the local fellow into office. We have a bunch of overly rich figureheads whom know nothing about the area they are serving and quite often are mouthpieces for the very companies we disdain!
If we can just get RID of the people following behind the cash cow companies we would get so much farther against them then trying to get a rich guy to hear middle and lower class issues. He hasn't been there. How would he know?
Let's start local and get global!
Unfortunately, the recent supreme court decision will make it very difficult for any "small" guy to make it up the political ranks. Generally, the politician w/the biggest war chest is the one to win elections. For the local, neighborhood politician to climb the political ladder and make it into the bigger state and national scene, he or she needs funding, and that's where the corruption begins. That's why it seems to me that even though we're poor, we are many, and between hopefully convincing politicians that we are a major voting block, and maybe doing some fundraising of our own to contribute to "friendly" politicians, that's the way we'll be able to get the changes we need.
I posted the original idea because it appeared to be the only way to win this game in reality. It seems that Mr. Applebaum is considering this idea more seriously. Of course if more than 200,000 people wanted to take part, that would be better.
The reason it is the only way to win is because the people who control the system are in their positions because of the people who get rich by exploiting the poor.
If it were up to me no person would be allowed to have more than $100,000,000. With that much money, a person could live like a God for the rest of their lives. If you have $100 million then you win. If you are doing something worth doing then you won't care if you can't make more money. This is possible.
Some people have Billions of dollars. Some countries don't have $1 Billion for all the people in that country.
Sooner or later exploitation of the poor will lead to a "French Revolution" style revolution. The educated poor could make all this happen, but they keep worrying about their credit scores and other inventions made up by other people.
When we don't have money for schools, roads, and other public services and people are living in tent cities because a small handful of rich people are holding onto their money, and worse, trying to get more, the conditions are prime for a massive restructuring to an economic system.
If we collapse it's most likely because as a whole, we the people, are lethargic and lazy bastards.
Bill Bessire
billbessire@aol.com