The crushing load of student debt

People are being buried under the processes and payment of student loans, a new report released by the Consumer Financial Protection Bureau (CFRB) finds, pushing a quarter of the nation's 41 million people with student loans toward default.

The stunning findings of the CFRB are pushing the agency towards crafting new rules for the $1.3 trillion student loan market. It notes the problems are particularly acute in the servicing of student loans, which CFRB described as being unfair in part because borrowers are often mislead and assessed with unexpected fees.

As detailed in the report, the student loan market lags far behind other areas of consumer debt when it comes to defaults. And a lack of standards is a big reason why:

Student loan servicers are a critical link between borrowers and lenders. Servicers manage borrowers’ accounts, process monthly payments, manage enrollment in alternative repayment plans, and communicate directly with borrowers, including borrowers in distress. There are no consistent, market-wide federal standards for student loan servicing and servicers generally have discretion to determine policies related to many aspects of servicing operations.

This is no way to help prepare our next generation if we want it to lead this country. As the Teamsters and others have noted, the soaring cost of higher education is a major concern. The U.S. needs to make it easier for those seeking a college education to earn one, not saddle them with a lifetime of debt.

Government needs to do more to ensure student loan rates remain low so students can better afford their post-secondary schooling. And candidates for the 2016 election need to find innovative ways to address the problem. Some already have. But the hard work then needs to be done to implement the changes.

We can't allow America's future to drown in debt.

Walker wants to take anti-worker platform nationwide

Wisconsin Gov. Scott Walker declared a war on workers yesterday. But this time, he's going after all of America instead.

Walker, currently flailing in his attempt to capture the Republican presidential nomination, released a plan that would roll back worker rights and cut pay all for the benefit of massive corporations who could then pay less and make more. Instead of trying to address income inequality, the Wisconsin union buster is doubling down on it.

The Washington Post summarizes Walker's anti-worker platform:

On the long list of changes Walker wants to make: enact national right-to-work legislation, dissolve federal unions and repeal President Obama's labor regulations. Walker would work with Congress to enact many of these changes, "or when appropriate, use the power of the executive to make commonsense changes to some of the workplace rules set by Washington," according to an advance copy of an eight-page proposal the campaign shared with reporters.

This doesn't come as a surprise. After all, Walker made his name by embracing a platform pushed by the billionaire industrialist Koch Brothers and the conservative American Legislative Exchange Council in Wisconsin to impose so-called RTW at the expense of everyday workers. So why not spread it nationwide?

Of course, the Teamsters have challenged all efforts to implement no-rights-at-work across the country. General President Jim Hoffa, in fact, just yesterday challenged an effort to override Missouri Gov. Jay Nixon's veto of the anti-worker legislation in that state. Although the piece speaks about that RTW bill specifically, change "Missouri" to "America" and the concerns are just as valid:

If the Legislature were to override Gov. Nixon's veto, it would be harder for workers to protect their wages and job security and their voice at the workplace would be silenced. Meanwhile, big business would get even more power at a time when CEO pay has grown to 373 times that of the average worker. 

This effort needs to be called out for what it is -- a corporate-fueled attack on everyday people who are just trying to earn a living to support their families. It's part of a national effort being pushed by the same big companies and business executives who for years have boosted their profits by sending American jobs overseas. These out-of-state special interests are targeting Missouri to lower wages and cut benefits for workers so they can increase their profits even more.

Luckily for workers, it seems Walker is his own worst enemy in his run for the White House. At this point, it is unlikely he will get a chance to implement his plans himself. But workers shouldn't be naive. Other anti-worker politicians could grab hold of the mantle and punish everyday Americans themselves.

RTW is a ruse. It lowers pay and benefits. That's why workers need be aware of the issues and stay involved in the process. That way, workers win. Teamster Strong, America Stronger!