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.)
dicas para apostar em golos
My homepage :: tecnicas apostas desportivas (Afesp2025.Upgradelabs.pt)
listado de Apuestas Carrera De Galgos Fin De Semana
casino casinos online dinero real
deposito 1 euro
apostas esportivas virtuais
Stop by my blog post – bilhete pronto aposta esportiva
apuestas real madrid manchester city campeón mundial
aposta online site
Also visit my web-site; melhores apostas Multiplas
milenium czechy podatek bukmacher opinie
analise Apostas desportivas ganhar dinheiro
esportivas
kasyno apple pay szybka wypłata z free spinami 2026
spielautomaten online sachsen-anhalt
Here is my blog post casino 100 Euro Einzahlung Muchbetter
como site casas de apostas com bônus grátis [Aileen]
apostas
bukmacher curling
Feel free to surf to my web site: aplikacje bukmacherskie na androida
ehrliche Crash casino Um Geld spielen mit freispielen
bukmacher gra na 3 3
My web-site – wyniki play off nba
actividades en casino marina del sol
Here is my web blog – Casinos nuevos 2026
alle casinos seiten
Here is my webpage … bingo Bonus ohne einzahlung
die besten wett apps
Feel free to visit my webpage online sportwetten und live-wetten für fussball tennis Basketball eishockey
casinos con bonos sin depositos
en aragon
app para hacer apuestas tarjetas [Orville]
Online Casino 1000 Euro Bonus Ohne Einzahlung 25 euro lastschrift
analiza i typy bukmache
Feel free to surf to my website lvbet wisła kraków –
Jefferey,
kasyno z depozytem 25 live baccarat od 5 zł
online slots mit litecoin
Have a look at my website spielothek ab wie vielen jahren (Roscoe)
höchster casino startguthaben
my blog; alle Spielautomaten
kalkulator bukmacherski sts
Feel free to visit my web blog :: bukmacher definicja (Valerie)
online slots mit sofortüberweisung (Dedra) casino
im ausland spielen
slot da casino
my web-site – gioco con i dadi, Michal,
české online casino s bonusem za registraci casino deposit applepay
roulette alle zahlen zusammen
Here is my page … Casino mit usdt
online Megaways Slots um geld casino top 10
rekomendowane slotów online
Also visit my webpage – Kasyno Revolut Polska
casino 100 euro eps
Also visit my web blog … baccarat um echtes geld
juegos de casino online gratis sin descargar maquinas tragamonedas tipo casino
cuotas Actividades de juegos de azar y apuestas todas las casas
de apuestas
system combo bukmacher
Review my web-site; dania niemcy wynik (Trudi)
ganar blackjack casino en progreso, Katrice, online
robo quem site de apostas confiavel apostas
esportivas
app versus apuestas de tenis
app casas de apuestas deportivas en valencia apuestas gratis
casas de Mejores App Apuestas Deportivas f1
bukmacher totolotek forum
Feel free to surf to my web-site – wyniki meczów tenisowych
dice spiel freispiele
my page … casino bonus mit flexepin Einzahlung
site bonus casas de apostas libertadores (Beulah) apostas
legalidade
como ganar apuestas mundial de futbol (Clement) deportivas siempre
como funcionan las apuestas argentinas en ufc
casino 25 Euro einzahlung Lastschrift mindesteinzahlung 4 euro sofortüberweisung
horses to bet on grand national
Also visit my blog; free bets for cheltenham races [Iseebabe.com]
10 tiradas gratis casino
Here is my blog casinos en españa san jose
Slots Casino Gratis Tragamonedas gratis sin deposito españa
casino villajoyosa apertura
My web page; Casinos Con DepóSito