Walk Away From Student Debt

The following statement is from EDUDEBTORSUNION.ORG

EDU was created following the observation that debtors are a lot like factory workers.

To explain – factory workers go to work every day and transform capital into profit by making products. Students transform capital into profit when interest and penalties are added to a principle loan.

In itself, this system is acceptable in capitalist terms. However, it becomes unacceptable when there are abuses to the many for the benefit of the few without a method of recourse.

Before the establishment of the eight-hour workday and over-time pay, factory owners notoriously overworked their employees without compensation. Largely through the support of labor unions, these legal protections were established.

A problem also exists if the rights of student debtors are abused.

Amid budget cuts and tuition hikes in countless U.S. universities – public tuition has increased 24% in the last five years alone, 17% for private universities – students absorb the cost through increased debt.

When it comes to student loans, usury and bankruptcy protections do not apply. In fact, student loans (federal and private) are the only type of loan that cannot be discharged through bankruptcy in all of U.S. history. In addition, the Truth in Lending Act (TILA) – which requires full disclosure of terms and costs associated with borrowing from lenders – does not apply to student loans.

Accordingly, debtors can benefit from union representation – particularly when it comes to negotiating better terms of loan repayment.

Presently, EDU Debtors Union is a proposition and a website focused on this question: “Who are student debtors and do they want to create a union?”

Further, what would that union do? How might it benefit and support debtors? What are the goals of that union?

1 Comment

  1. Careful posting things such as ” Fuck banks,stop paying them” Fox News loves this. Fox loves interviewing the kid who doesn’t know there difference between idea and ideology, who thinks Cornel West is rapper, and who thinks the world would function fine without banks.
    We need to talk to political leaders using sane arguments. Fixing the tax code creates demand which will allow us all to have jobs and pay pack loans.

    Collective bargaining with other debtors does sound interesting.

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