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.)
bonus od depozytu Kasyno przelewy24 online
polecane 2026
casinos juegos para ganar dinero en españa gratis casino online granada españa
bet united states online casino bonus, best deposit bonus uk
and online gambling south australia, or el torero slot usa
Here is my blog no limit holdem vs limit hold’em (Lynell)
bonus bingo casino
My homepage – application blackjack en ligne (Antje)
casino villa de acuña online cual es el
mejor juego
online pokies reviews australia, virtual who owns casino woodbine (Emmanuel) united states and ept poker chips in usa, or new
zealandn roulette odds payout
usaash bingo usa, online casino uk top 10 and new zealandn free slots no download, or online soboba
casino play online (Susanne) from united states
online poker that takes united statesn express, 20 free spins on registration usa and no wagering rivers casino table games minimum bets –
Christal,
bonuses uk, or play n go casino canada
top online pokies and casinos united states information, top 20 online casinos uk
no deposit and free Who Owns The Beau Rivage Casino no
deposit bonus uk, or deposit 10 play with 50 slots uk
free pokies canada aristocrat, new united states based onine pala casino Free play and best online casino united kingdom fast payouts, or gambling united
states statistics
juegos de edad para ingresar al Casino
24
verkkopankki 10€ talletus Kasino bonus ilman kierräTystä nopea kotiutus
new bingo site usa, pokies australia revenue and casino free spins no deposit required united kingdom, or new zealandn slots app
Also visit my page split blackjack
juegos juego para ganar dinero por internet casino online (Wilton) de casinos tragamonedas
top nové casino
my web site :: hrát automaty přes muchbetter – Marie
–
speed roulette suisse
Also visit my blog; bonus code casino max (Gertrude)
sms crown casino stock prices; Aja, deposit australia, real slot machines
for sale canada and new zealand gambling sites, or spin palace
withdrawal canada
la vera scommessa oggi
Here is my homepage Bridge Gioco Regole
luotettavat verovapaat kasinot
Look into my web blog; pikakasinot ilman tiliä – Betsey,
casinos tragamonedas cerca Juegos De Casino Verdaderos mi
Hi there, yyup tuis paragraoh iss trtuly nicce annd I hzve learneed lott off things
froim itt on thhe topic of blogging. thanks. xnxx
casinò numero verde
Feel free to visit my blog post – la Scommessa il giornale
blackjack pontoon en ligne
Feel free to surf to my web site … double ball roulette mise minimum 0.50 euro
bonos casinos 2026
Also visit my homepage: gran casino de ciudad real (bibotelecom.es)
siti per giocare blackjack
Feel free to surf to my web site :: briscola Gioco di carte
gokhal boom
Here is my webpage :: beste casino 2025
casinos mas famosos en españa
Also visit my blog post – casino madrid online codigo promocional
metodo 11 roulette
My web page applicazioni per slot Machine
beste casino terneuzen
My web page … blackjack zonder cruks (Oliver)
list of usa online casinos a to z, united statesn roulette best odds and 100 no
deposit bonus codes 2021 canada, or no deposit gambling sites usa
Have a look at my blog post – bingo game on Mobile
gioco dadi online gratis
Also visit my blog; Slots Per Soldi
auto wheel roulette play usa online, united kingdom casino parlay odds (Elvia) in vegas and 5
dollar deposit online casino usa, or united kingdom
poker machine game download
speelhal geraardsbergen
My page :: Beste Game Shows Online
crypto gambling sites uk, can you play poker online for real money in united kingdom and no
deposit united states free mobile casino games no download, or
casino cornwall ontario united kingdom
canadian online bingo games, gambling stocks in united states and how to cheat pokie machines canada, or united
statesn online level up casino No deposit bonus codes 2022 best
canadian approved online casinos, free slots cash frenzy and gambling legislation australia, or canadian online
casinos pokies
Here is my blog … Sasquatch Casino
bingo met welkomstbonus
my web-site :: Beste Casino Crypto
candy crush il gioco
Feel free to surf to my blog: siti di Blackjack (futuresolar.Com.Pk)
juegos Mejores casas de Apuestas de España apuestas sin dinero real
when will pokies reopen south united states,
big usa 1p roulette casino (Eve) wins
and slots free spins uk, or free spins no wagering requirements usa
consejos para hacer Apuestas Fc Barcelona deportivas
roulette quanti numeri ha
My web site – Come scaricare una slot machine
que significa handicap 0.0 en casa apuestas chile
casas de estadisticas apuestas deportivas europa league
live beste Online casino zonder download minimum 100 euro
consejos Apuestas En partidos de futbol tenis
foros de apuestas madrid betis (casadomaior.es)
live roulette voor geld
Review my site: beste stortingsbonus online casino
gokken veel spellen
Review my web blog :: casino direct storten [Derek]
mejores casas de apuestas sin licencia 2 division