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.)
chusachansi casino in fresno california, roulette layout usa and new zealandn online pokies bonus, gambling Is good Or bad new casinos no deposit bonus usa
spiusailla how can i win real money with no deposit deposit bonus code, no deposit online
casino united states and 21 dukes casino review, or uk bingo call
spil på dmgp
Feel free to visit my web site: Hvilken Bookmaker har Bedste odds
zakład bukmach
Also visit my site :: tenis Indian wells wyniki
best way how to play name bingo win united kingdom roulette, list of casinos
in usa and download poker stars uk mac, or online slots no deposit
bonus usa
como apostar contra
Here is my web blog – melhor site de apostas xadrez
trav billund i dag
my website; 1 division Odds
united statesn casino no deposit free spins, 100
united kingdom when will ottawa casino open
free keep online spin winnings and online casino
canada no deposit sign up bonus, or poker with real money
usa
topitalia scommesse di domani Pronostici
jaki bukmacher Bet365 opinie w polsce
formel 1 tips
My web blog; Spiludbydere uden rofus
apostas analises esportivas
pixgold apostas esportivas
Feel free to surf to my blog post bonus sem deposito casas de aposta
miglior online di scommesse boxe (Roxanna) italiano
perto atleta aposta online
Feel free to surf to my web page; melhor grupo vip de apostas esportivas
Apostas De Valor Internet internacional
em quem apostar amanha
my website; bóNus casas de apostas
mejor pagina de casinos online apuestas deportivas de futbol
gratis beste wedden (Jack) wedden crypto
Apuestas rugby world cup a la baja
pallacanestro online migliori siti scommesse con cash out italia
spiltips tennis
Also visit my website … dagens Odds
hunderennen online basketball wetten vorhersagen (Jimmy)
That is really interesting, You’re an excessively professional blogger.
I have joined your feed and sit up for in the hunt for more of your great post.
Also, I have shared your site in my social networks
cuotas apuestas Legales en colombia la liga
kendte spiludbydere
Have a look at my page betting strategi Høje odds
mistři ligy ve fotbale
My web-site … Fotbal První Liga
pronostico nba hoy Calculadora De Apuestas deportivas
deportivas
sites para Como Viver De apostas Esportivas
tipo de como fazer apostas desportivas online
mehrfach kombiwette rechner
Feel free to surf to my page … ncaa basketball wetten – Nickolas,
sugestao de melhores apostas
aposta ganha prognósticos
Feel free to visit my homepage Como Calcular apostas combinadas
esport pré dicas de aposta esportiva – Karolin,
significado stake apuestas real Madrid Betis
esporte vip Apostas Ganhar sempre online
lista siti cosa vuol dire Over nelle scommesse
equalizzatore Scommesse motogp testa a testa
todos sites casas de aposta que pagam com pix apostas
onde apostar em esportes
Feel free to visit my web page … são grupos de aposta online
jogos bom para apostar hoje
Also visit my website site apostas online confiavel
apostar em escanteios
my page: Apostas E Dicas
sportwetten gratis bonus
Here is my web-site :: Wetten Basketball Tipps
komb handicap spil
site bonus casas de apostas iphone; Benny, apostas gols
app Show De Bola Apostas apostas esportivas
blackjack ohne einschränkung
Check out my web blog :: progressive jackpots um echtes Geld
frankfurt hauptbahnhof casino mit lizenz nrw (Palma)
Nové čEské Casino Bez OvěřEní 2026 350 kč
bonus bez vkladu
casino mindesteinzahlung 25 euro litecoin
Feel free to surf to my webpage; gewinnauszahlung spielautomaten (Anya)