They Pledged Your Tuition to Wall Street (summary)
UC on Wall Street: Another Reason Your Tuition Goes Up
Bob Meister, President, Council of UC Faculty Associations (CUCFA) Professor of Political and Social Thought, UCSC
(Download a PDF of this document. This is a summary of a longer piece.)
How does UC sell $1.3 billion in construction bonds immediately after declaring an “extreme financial emergency,” slashing funds for teaching and research and cutting staff and faculty pay? By using your tuition as collateral. Higher tuition lets UC borrow more for construction even while it cuts instruction and research.
You’re often told that your tuition goes up because the state pays less for higher education, but you’re almost never told that UC isn’t obliged to use your tuition in the way it uses public money. Unlike state funds, your tuition money can also pay the interest on construction bonds and be used as bond collateral.
UC has in fact promised its bond trustee (Bank of New York Mellon Trust) and the companies that rate bonds (S&P and Moody’s) that bondholders have first claim on your tuition in the event of default. (See the full “They Pledged Your Tuition to Wall Street.”) It has also promised bondholders that it will raise tuition as needed to avoid bond default. Most importantly, UC has pledged to do nothing to lower the ratings on its bonds. Your tuition is not only pledged to Wall Street, Wall Street could demand the next tuition hike by threatening to lower UC’s Aa1 bond rating.
Harvard, the world’s richest educational corporation, curbed construction when endowments fell because its people and programs came first. Its bond rating, slightly higher than UC’s, does not seem to have suffered. UC, however, seems to have the opposite priorities. It started borrowing against your tuition in spring 2004—when Gov. Schwarzenegger gave it a green light to raise tuition, and claims the ability to do this in every prospectus for bonds partially backed by your tuition.
By June 2008, UC’s pledged collateral has jumped by 60% (from $4.2 billion to $6.72 billion). Tuition, a large and growing component of that collateral, will have risen by 109% since 2004 if this year’s increase happens. The Regents have approved another $2B in projects that they plan to fund primarily with tuition-backed bonds, because this is where their debt-bearing capacity will grow. When these new bonds are issued, after your tuition hike is a done deal, debt service on all tuition-backed bonds will have risen to around $430M, nearly double what it was last year. Your tuition and fees make up the largest component of this debt service and the only component that UC has pledged to increase.
Increasing the collateral for bonds and paying more in debt service are clearly among the reasons why the Regents want to raise your tuition. But students would be more likely to resist if they knew this. By describing tuition increases as a simple substitute for state educational funds, UC avoids the question of how much goes for construction, rather than instruction.
Don’t be fooled by the argument that UC is simply emulating the great private universities. The ones I know now use their endowment income to subsidize tuition for students who would otherwise need loans: UC, by contrast, now pledges its ability to drive you and your families deeper into debt so that it can increase its leverage on Wall Street. This is what it looks like to privatize a great public university.
Will you go along with this November’s 32% tuition increase, now that you know the money is being promised to Wall Street?
It will happen unless you stop it.
(The above is a summary of a longer piece.)
casinò a palermo
Review my web page – Bingo Isola Verde
beste Blackjack hasselt party
nederland
casino 3 euro bitcoin
Review my web site :: Liste aller online casinos
Online casino deutsches recht neteller ab 10 euro
amusementshal tiel
Stop by my web site … Beste Blackjack Lage Inzet
casino 10 euro depositum syddanmark
bedste bonus uden indbetaling udenlandsk spil video poker online rigtige Penge casino
the blackjacks homepage canada, best online casino australia no deposit bonus and can you play poker for money online in united kingdom,
or new no deposit free spins uk 2021
My site :: Roulette Abcde
50 gratis spins
Stop by my web page; betrouwbaar casino breda (Smallworldfoundation.org)
free spins shark freuky, do you have to pay taxes on gambling
winnings in australia and roulette online united states, or uk bingo call
Also visit my blog post :: biggest casino east coast
gioco d’azzardo italia 2026
my web-site – Puntate Alla Roulette
keno zahlen letzte woche
Feel free to surf to my blog post: casino 15 euro einzahlung trustly
online Beste Kerst Bonus Nederland Casino [Cebecv2.Divium.Nl] minimum
storting 15 euro
live spil blackjack gratis casino, Gene,
loyalitetsbonus
all new zealandn poker rules, united kingdom tax biggest casino in lake charles; Asa, winnings and poker online with
friends canada, or best slot games online uk
paras nettikasino ilman kierrätysvaatimusta bonus ilman kierrätystä
juegos de casinos tragamonedas solo por diversion y bonos
Also visit my homepage … casino sant vicenç dels horts (Michaela)
milwausaee casino, skrill united states gambling and $5 minimum
bet free bonus no deposit (Kathlene) casino
australia 2021, or best online casino new zealand fast payouts
poker sites that accept paypal in united states, betsoft no deposit bonus united kingdom and
big bucks bingo australia, or bonus freuky slots
Here is my blog: mountaineer casino official website (Virgilio)
top 3 kasyn kryptowalutowych
my web-site – online kasino weryfikacja konta bankowego kasyno online; Phillip,
uudet nettikasinot ilman pelirajoja
Here is my web-site – klarna kasino 1€ minimitalletus (Mackenzie)
100 juegos de casino para ganar dinero real españa
gratis para jugar casino
online usa mobile casinos free spins and chips 2021, usa american online Casino With $5 Deposit casino reviews and online casino available in australia,
or minimum deposit 1 pound casino usa
best usa online casino 500 free play – Jayme – real
money, cash online poker canada and pokie machines
in united states, or free online poker machine games united kingdom
casinò soldi veri senza registrazione
my web-site – giochi slots gratis
80 free spins no deposit uk, united states roulette
rules and canada online casino slots, or
free money gambling online sites india casino united kingdom
numero più alto roulette
my homepage: qual e o melhor casino in linea,
Adela,
free pokies canada aristocrat, is there a casino in aria – Angie
– winnings tax free in canada and new zealandn online pokies minimum
$5 deposit, or united statesn casino regulation
schema roulette francese
Also visit my webpage: codici Promozionali casinò
casino vklad 100 Kč mobil bonus bez limitu
animal slots Casino nederland grote inzet
canadian casino no deposit bonus codes 2021, how many poker machines in australia and
does united states have casinos, or amex free whales of cash casino game, Dina, new zealand
casino kreditkarte ab 15 euro
my blog post; echtgeld slots Hold and spin
an canadian casino, online casino united states 1 dollar deposit and no deposit bonus slots australia, or
free online pokies no download united kingdom
Feel free to visit my website – game Apps earn real money
deutsche seriöse online casinos
Stop by my blog casino 100 euro einzahlen 500 euro spielen
online casino met 10 live games hoge bonus
free online casinos united kingdom, bonauka gambling
machine and is corporate responsibility something that can be ignored – by businesses in the gambling sector (Kandy) legislation australia,
or top online pokies and casinos canadian free games
regulation of gambling in canada, slot payback info united states and cash poker online canada,
or best casino bonuses no deposit uk
Here is my blog post; bingo Clash real Money
φρουτακια 3×3
Also visit my web-site … καζινο προσφορες σημερα
best usa online casino real money, top 100 uk online casinos and same-day withdrawal online casinos united states, or
best online casino new zealand fast payouts
Feel free to visit my webpage – bitcasino (Nannie)
seriöses online casino mit jeton casino mit paysafecard 10 euro und bonus
burraco trucchi
Also visit my web blog :: jack di picche (Ericka)
all slots online nz casino, free spins no deposit casinos
usa and new zealandn online pokies bonus, or online casino guide uk
Have a look at my web-site; Blackjack Tac Ops Knives
hur fungerar dubbelchans
Feel free to visit my blog :: spelbolag utan licens paypal
come vincere al gioco d’azzardo
Also visit my web page: gioca a bridge online (Nwfitgames.com)
online doubledown casino download for pc winners
usa, canadian roulette free game and how to hack canadian pokies,
or live online roulette united states
80 ball bingo beste Seizoensbonus casino nederland
mobilní casino bez vkladu 2026 (Isobel)
vklad 5 kč google pay
welche online casinos sind die besten
Here is my blog; casino 3 euro einzahlung Muchbetter
bonus buy slots freispiele
my website – spielautomaten hoher einsatz –
Enriqueta –