As student debt races past personal and credit card debt, we find more and more ex-students denied a fair chance in life due to overwhelming debt. The colleges disclaim responsibility claiming that they need even more money.
How would students and their families feel when they learn that America’s colleges and universities are sitting on a TRILLION DOLLARS of cash which could be allocated to help students?
Here is an excerpt from a Press Release issued by Student Loan Justice:
Last year, it was reported that the University of Wisconsin had amassed between $400 million- $1 billion in funding, money taken from excess tuition income- most of which was supplied through the nation’s federal student loan program. This “reserve” was built during a time where the University raised it’s tuition at a record pace and pointed to the national economic crisis as justification for these actions.
It has since been reported that this practice of siphoning tuition income was not limited to the University of Wisconsin. In fact, it is overwhelmingly evident that most, if not all universities in this country have been engaging in similar practices. The following (courtesy of the University of Wisconsin) is a an incomplete snapshot showing the level of “tuition reserves” amassed by other, similarly sized universities over the past several years*.
These data, if accurate, point to a cumulative tuition “slush fund” of hundreds of billions of dollars, nationwide. These are not endowments. These are not charitable funds collected via the altruism of alumni, foundations, or other wealthy benefactors. These are monies siphoned from the most vulnerable citizens at a time when the wealth disparity between the richest Americans, and these citizens has never been higher.
The universities, writ large, should be ashamed of themselves. The media should investigate this matter thoroughly to find out precisely how deep and how wide this abuse of the citizenry goes. The people should be outraged. Finally, Congress should take whatever actions necessary to acknowledge, and rectify this massive injustice in a manner that benefits those harmed. as opposed to fines, etc, which only serve to enlarge federal, state or other governmental coffers.