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| Debt campaigners tear up student loans | Debt campaigners tear up student loans |
| (about 7 hours later) | |
| An activist group in the United States has been carrying out deeds that some might think the stuff of dreams - buying and cancelling other people's student debts. | An activist group in the United States has been carrying out deeds that some might think the stuff of dreams - buying and cancelling other people's student debts. |
| Rolling Jubilee has purchased and abolished $3.8m (£2.35m) of debt owed by 2,700 students, paying just over $100,000 (£62,000), or as it says, "pennies on the dollar". | Rolling Jubilee has purchased and abolished $3.8m (£2.35m) of debt owed by 2,700 students, paying just over $100,000 (£62,000), or as it says, "pennies on the dollar". |
| The campaign group, which wants to "liberate debtors", says it takes its name from the tradition in many religions of marking a "jubilee" celebration by freeing people from debt. | The campaign group, which wants to "liberate debtors", says it takes its name from the tradition in many religions of marking a "jubilee" celebration by freeing people from debt. |
| An offshoot of the Occupy Wall Street protest that began in New York, the campaigners, funded by donations, say that more than three quarters of US households are in debt. | An offshoot of the Occupy Wall Street protest that began in New York, the campaigners, funded by donations, say that more than three quarters of US households are in debt. |
| Debts can be bought and sold in the financial marketplace. But student debt, which has spiralled to an estimated $1.2 trillion (£619bn), is not usually as available to buy as other debts, such as unpaid medical bills. | Debts can be bought and sold in the financial marketplace. But student debt, which has spiralled to an estimated $1.2 trillion (£619bn), is not usually as available to buy as other debts, such as unpaid medical bills. |
| In this speculative secondary market, third parties buy debt for a fraction of its original cost and try to collect the full amount from debtors. | In this speculative secondary market, third parties buy debt for a fraction of its original cost and try to collect the full amount from debtors. |
| But these debt campaigners are buying debts and then writing them off. | But these debt campaigners are buying debts and then writing them off. |
| Debts on sale | Debts on sale |
| The student loan debts cleared by Rolling Jubilee were for students from Everest Colleges, a string of institutions owned by Corinthian Colleges, a for-profit education company. | The student loan debts cleared by Rolling Jubilee were for students from Everest Colleges, a string of institutions owned by Corinthian Colleges, a for-profit education company. |
| A Facebook group is overflowing with reports of people having to pay back hundreds of dollars each month while working minimum-wage jobs. | A Facebook group is overflowing with reports of people having to pay back hundreds of dollars each month while working minimum-wage jobs. |
| Last month, the Consumer Financial Protection Bureau said it was suing Corinthian over its lending tactics. | Last month, the Consumer Financial Protection Bureau said it was suing Corinthian over its lending tactics. |
| Laura Hanna at Rolling Jubilee says the student debt situation amounts to a "bubble". | Laura Hanna at Rolling Jubilee says the student debt situation amounts to a "bubble". |
| The group pulled off the deal to illustrate how cheaply the money owed can be sold on the secondary debt market, she says. | The group pulled off the deal to illustrate how cheaply the money owed can be sold on the secondary debt market, she says. |
| "We wanted to question the morality around repayment," she says. | "We wanted to question the morality around repayment," she says. |
| "Your debts are on sale. They are just not on sale to you." | "Your debts are on sale. They are just not on sale to you." |
| Low income | Low income |
| Ms Hanna says the problem lies deep within the structure of the education system and the way that selling education as a commodity reinforces inequality. | Ms Hanna says the problem lies deep within the structure of the education system and the way that selling education as a commodity reinforces inequality. |
| Many of Everest Colleges' debtors are single mothers and are on low income, she says. | Many of Everest Colleges' debtors are single mothers and are on low income, she says. |
| "It is documented that they end up worse off and have no better chance of getting work than if they simply finished high school," she says. | "It is documented that they end up worse off and have no better chance of getting work than if they simply finished high school," she says. |
| The group is hoping to show students that if they work together, they can renegotiate their debt. | |
| Its debt collective has 350 Everest College students who are working to renegotiate their debt with the student loans companies and refuse unfair debts. | |
| In the past few weeks, she says thousands more have signed up. | In the past few weeks, she says thousands more have signed up. |
| At the very least, says Ms Hanna, students have another tool for negotiating their repayments. | At the very least, says Ms Hanna, students have another tool for negotiating their repayments. |
| "As an individual, you should feel morally compelled to renegotiate that amount." | "As an individual, you should feel morally compelled to renegotiate that amount." |
| Pensioner debtors | Pensioner debtors |
| Dawn Kaylor is a 49-year-old single mother from Illinois. She is one of 40 million people across the country in debt because of their student loans. | Dawn Kaylor is a 49-year-old single mother from Illinois. She is one of 40 million people across the country in debt because of their student loans. |
| She studied law at one of the Everest Colleges and owes $177,000 (£110,000). | She studied law at one of the Everest Colleges and owes $177,000 (£110,000). |
| "I live in fear and worry every day about what my future holds. | "I live in fear and worry every day about what my future holds. |
| "It's a very scary and depressing situation to be in. The scariest part is there is no way out. | "It's a very scary and depressing situation to be in. The scariest part is there is no way out. |
| "There is no relief, other than death." | "There is no relief, other than death." |
| Ms Kaylor recently joined the collective to try and challenge her debt. | Ms Kaylor recently joined the collective to try and challenge her debt. |
| She now works in a bank, which pays minimum wage. She says she can pay back only $90 (£56) a month - but that is because she has deferred two of her loans as she is still technically enrolled at the college. | She now works in a bank, which pays minimum wage. She says she can pay back only $90 (£56) a month - but that is because she has deferred two of her loans as she is still technically enrolled at the college. |
| When she has to start paying back her loans in full, she says she won't be able to pay for medical care. "I will probably lose everything I have," she says. "Including my home." | When she has to start paying back her loans in full, she says she won't be able to pay for medical care. "I will probably lose everything I have," she says. "Including my home." |
| Student debt can pursue people all through their working lives and into retirement. | Student debt can pursue people all through their working lives and into retirement. |
| The United States Government Accountability Office published figures last month showing there were more than 700,000 households with people aged over 65 still repaying student debt. | The United States Government Accountability Office published figures last month showing there were more than 700,000 households with people aged over 65 still repaying student debt. |
| These pensioners still owed more than $18bn (£11bn) - and officials giving evidence to a US Senate committee said this could mean that student debt repayments could be deducted from retired people's social security benefits. | These pensioners still owed more than $18bn (£11bn) - and officials giving evidence to a US Senate committee said this could mean that student debt repayments could be deducted from retired people's social security benefits. |
| More than half of student debtors who are over 75 are in default on their loans. | More than half of student debtors who are over 75 are in default on their loans. |
| 'Symbolic' work | 'Symbolic' work |
| This week, the Federal Reserve chief Janet Yellen warned the quadrupling of the student loan debt since 2004 represented a barrier to social mobility. | This week, the Federal Reserve chief Janet Yellen warned the quadrupling of the student loan debt since 2004 represented a barrier to social mobility. |
| John Aspray, national field director at the United States Student Association (USSA), said recent changes in law mean people in medical or gambling debt can declare themselves bankrupt - but to do so for student debt means satisfying an '"undue hardship" criteria, which is very difficult to prove. | John Aspray, national field director at the United States Student Association (USSA), said recent changes in law mean people in medical or gambling debt can declare themselves bankrupt - but to do so for student debt means satisfying an '"undue hardship" criteria, which is very difficult to prove. |
| "Opportunities for renegotiating are very well hidden," he says. | "Opportunities for renegotiating are very well hidden," he says. |
| He says Rolling Jubilee's work was "important and symbolic" as a lot of people "don't even consider" getting rid of their debt. | He says Rolling Jubilee's work was "important and symbolic" as a lot of people "don't even consider" getting rid of their debt. |
| As 85% of student loans are guaranteed by the national government the USSA is putting pressure on the department to "cut contracts with the worse corporations", says Mr Aspray. | As 85% of student loans are guaranteed by the national government the USSA is putting pressure on the department to "cut contracts with the worse corporations", says Mr Aspray. |
| "Political reforms are needed," he says. "We are going to see people continuing to rebel against this." | "Political reforms are needed," he says. "We are going to see people continuing to rebel against this." |