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.)
casinos australia no deposit bonus, united statesn online casinos and
online pokies paysafe united states, or 2021 no deposit
seneca niagara casino bus Trips usa
europäisches roulette echtgeld
my website; casinos ohne limits – Bar.Brasserie-Fontaine.ch
–
slots bis 20 euro einsatz
Here is my website top casinos mit klarna
united states where to play online gambling sites, does canada have slot machines and real money
slots app canada, or no deposit casino usa
usa online casinos 2021, top ten online casinos united states
and online best Casino Affiliate sites
games uk, or play online pokies usa
free bingo no deposit win real can you make money from online betting united
states, 50 free spins no deposit 2021 nz and understanding united statesn pokies, or 21 dukes casino login
free online slots new zealand, online slots bonausaa and cash poker online canada,
or united statesn poker tour
my web blog: what drug has a side effect of gambling; Tim,
pontoon um geld spielen
Also visit my web site :: alle online casinos liste (Concetta)
legal gambling sites australia, casino max bonus codes 2022 – Mary, offers no deposit usa and
gambling issues in australia, or chukchansi
gold casino
legal gambling age in united states, Best Online Casino No Verification in victoria australia and how old do you have to be to go in a casino
usa, or illegal gambling law usa
fastpay casino uk, fast payout casino nz and free casino no deposit bonus uk,
or free no deposit casino uk 2021
Also visit my website :: how many casinos are there in the world
poker sites australia, is online slots legal in australia and bet uk casino, or $10 deposit
online casino australia
Here is my blog post :: Dq11 roulette jackpot (plasticmakesperfect.Org)
canadian online pokies that accept paypal, usa online should i apply for casino credit no deposit and bet365 play
new zealandn roulette online uk, or united statesn casino guide coupons
gold coast casino australia, no deposit bonus uk online casinos and canadian casino sites in axis, or online Is the Aria casino open
slots real money canada
neue casino app iphone
my blog; Bankvorteil blackjack, Lancarkencing.Com,
no deposit bonus free spins uk, usa casino roulette game tips (Dawna) rules and betway poker
australia, or tax on gambling canada
888 poker login united states, free $25 online bingo
canada and new zealandn online pokies bonus, or new uk paypal
casino
Feel free to visit my blog post; roulette royale mod apk download (Latanya)
casino Mit 1 euro einzahlung Klarna
mit 10 euro einsatz
bestes VolatilitäT Online Casino hamburg
höchster casino startguthaben
Feel free to visit my web blog die spielbank no deposit bonus
Casino bonus ohne einzahlung seriös (http://www.rk-brandschutz.at) wahrscheinlichkeitsrechnung
online casino ab 3 euro paypal casino 15 euro trustly
slots mit tumbling reels
My web site; Online Casino Ohne EinschräNkung Trustly
online casino 500 Euro Einsatz freitagsbonus 2026
online 100 willkommensbonus casino highroller bonus
keno zahlen heute gezogen
Feel free to surf to my web-site – roulette Spiel empfehlung
echt geld live casino erfahrungen [Tandy]
app
Online Casino Ohne Bankkonto mit einzahlung
bestes casino erlebnis
my web site: neue casinos mit muchbetter
crazy time live Noppapelit Kasino Ilman Talletusta bonus
united kingdom online casino real money pokies way, best united kingdom online
casino paypal and new united states online casino games,
or dice poker rules michaud toys
Stop by my web blog :: blackjack video game free
sunset slots casino ohne anzahlung bonus
My web blog … spielautomaten programm
live Kostenlose Casino Freispiele Ohne Einzahlung hoher einsatz
united statesn style roulette, united statesn no deposit free spins and
how to make money online without paying anything usa, or australia Grand casino
hinckley suites (http://Www.Implantoprotesi.com) lasseters
bitcoin uudet kasino ilman kierrätystä suomi (Maura) 20€ minimitalletus
online casino mit Ohne ausweis skrill ab 10 euro
video spielautomaten casino (Kfordvoiceactor.com)
ohne 5 sekunden pause mit bonus
roulette felder anzahl
Visit my site :: online slots echt geld (Earnest)
double ball roulette echtgeld
Here is my website :: glücksspiel berlin; Curt,
mobilepay nettikasino bonus
My web site: Tuore Nettikasinot Nopea Kotiutus
blackjack online zahlungsarten
My webpage – echtgeld slots höchster rtp
uudet nettikasinot ilman varmentamista
My web-site; nettikasino app (Johnie)
slots skrill auszahlung
My blog post … online roulette mit paypal (Manual)
megaways slots hohe gewinne
Feel free to surf to my blog – Casino freispiele wager Frei
casino ohne beschränkung Paysafecard auszahlung verifizierung
nettikasino siirtomaksu
Also visit my webpage 250% bonus ja ilmaiskierrokset kasino
casino mindesteinzahlung 25 euro apple pay
Also visit my blog post … wo kann man noch online roulette spielen
Best Casino In Philippines online poker in the usa,
canadian roulette free game and australian casino chips, or united statesn online poker
aristocrat pokies real money united kingdom, where can united
statesns play roulette online how to gamble and win Money uk casino 10 no deposit, or free poker machines online united states
bestes live dealer spiele online echtgeld, Gabriel, casino saarland