Stafford Loan Justice

What “new politics of student debt”?!

There isn’t a “new politics of student debt.” It is an old politics, a politics that concerns debt servitude. Borrowers have been aware of “politics” (as in power relations) the minute they signed on the dotted line for their education.

Inside Higher Education‘s recent article ignores the importance of capitalization in increasing debt, monthly payments, and more importantly, the beneficiary of “free” capitalized interest. The article also ignores the role of the Department of Education in setting loan policy in terms of writing regulations on student loan capitalization and repayment.

In 2005, I contacted my legislators on the capitalization issue, as well as to share ideas on potential volunteer activities. Nada, nothing, zip, zero.  There still doesn’t seem to be any cognizance of the role of capitalization in inflating debt, or critical thinking about the ways existing programs such as Public Service Loan Forgiveness could expand options for borrowers to repay their loans., especially adjunct faculty and those working part time.  If any borrowers skim this blog, please contact your congresspeople to request hearings…it’s the only way to bring the hidden problem of capitalization to light.

Advertisements

Written by S.

May 5, 2012 at 12:59 am