Wednesday, August 31, 2011

Wall Street Journal: S&P Affirms Some Student-Loan ABS

When the country faced the debt ceiling fiasco, AEM discussed what could have potentially happened if the U.S. defaulted on its debt. I also talked with several experts, and the analysis was grim. Then S&P downgraded us, even after we raised the debt ceiling, and it remained to be seen how that would impact student loans. That was discussed from the vantage point of the market place, i.e., how would investors respond to the downgrade, what that could potentially do to variable interest rates on student loans, and what the would mean for people seeking student loans. More importantly, however, I wanted to touch upon the way it could affect current borrowers.

The outcome still remains uncertain, but the WSJ provided some information on S&P's ratings of student loan ABS.*

According to the Wall Street Journal, despite the sovereign cut, S&P has affirmed some student loan ABS. But what does it mean that "some" have been affirmed by the agency, and not all of them? Of course, it's one agency, and one that might be in trouble for the subprime housing crisis with the DOJ. What's even worse? According to Zeke Faux and Jody Shenn at Bloomberg News, S&P " is giving a higher rating to securities backed by subprime home loans, the same type of investments that led to the worst financial crisis since the Great Depression, than it assigns the U.S. government."

The reporters added, "[the agency] is poised to provide AAA grades to 59 percent of Springleaf Mortgage Loan Trust 2011-1, a set of bonds tied to $497 million lent to homeowners with below-average credit scores and almost no equity in their properties."

Sooooooooo, let me get this straight. This company, that most likely played a role in bringing the world economy to its knees, destroying the financial security of millions of homeowners, is back at it again?!? To add insult to injury, they have downgraded the U.S., and now their going to give a triple-A rating to subprime home loans again?!? What in the f--k is going on here?!?

As for the student-loans, another agency - Fitch's (see below) - downgraded some student-loan backed securities in early July. We'll have to see what the outcome will be for the "other" loans.

I'm following this part of the story closely, talking to experts about these themes, etc. Stay tuned.

*ABS means "asset-backed securities," which were part of the now defunct FFELP program. These are loans guaranteed by the Department of Education. That means if a borrower defaults, the federal government will still pay the lender. (Sooo, I think you can see the connection here, i.e., a lenders disinterest in working with a distressed borrower? Who cares? They're gonna get the money anyway, so they have no incentive to work with struggling borrowers. Grand, right?!?) These asset-backed securities are also why Sallie Mae, Nelnet, and others lenders like to attract investors by talking about how much debt (via FFELP) they have on their books. These are seen as lucrative options for investors.

Related Links


"UPDATED: U.S. Expects Downgrade: Indentured Educated Class Officially F&$%ed!," AEM (Aug. 5, 2011)


"Quick Update: Default, The Debt Ceiling Fiasco, and Interest on Your Student Loans," AEM (Jul. 31, 2011)

"Your thoughts - The Debt Ceiling Fiasco and Student Loan Debt," AEM (Jul. 27, 2011)


"The Debt Ceiling Fiasco And Student Loans," AEM (Jul. 25, 2011)

"The Debt Ceiling: Why It's A Real Issue For The Indentured Educated Class," AEM (Jul. 25, 2011)

"Sell Those Indenture Instruments Immediately! The Debt Ceiling Disaster and Student Loans," AEM (Jul. 25, 2011)

"PHEAA - Fitch Downgrades Sub and Jr. Sub Notes for PARTS Student Loan Trust 2007-CT1," AEM (Jul. 6, 2011)

"Money Making Schemes: FFELP Loans, the Market, Sallie Mae, and Nelnet," AEM (Jul. 4, 2011)

"Steve Eisman Blasts For-Profits, Arguing 'Subprime Goes To College,'" AEM (May 28, 2010)

"In a free market world, anyone is game - even the most vulnerable," AEM (May 4, 2010)


From the Best to the Worst: For-Profits Are An Ivy-League Created Scam

Interesting. If you take a look at most of the top folks at Kaplan - their "leadership" squad - almost all of them went to Ivy Leagues or elite schools. I know it's a naive question, but I went to those types of schools, and how is it I have a sense of ethics? Why is it I learned that education is a public good, and they apparently didn't?

Moreover, if the top-notch people at Kaplan have "real" degrees, then what does that say about their "product?" I am loath to use that term, but that's what these folks have done. They've turned education into a consumer product, which is the primary reason why these schools are such scams. (The non-profits have done the same thing, i.e., incorporated language from the market to describe students and so forth).

If these folks truly believed in offering opportunities to lower-income Americans, their company would not be driven by enrollments numbers and profits. (Jesus, how depressing is that?!? It's a company. It's not a school). It screams hypocrisy. That is not to say that people who work and teach in these schools are not doing a good job, and trying to help their students. But the overall structure is corrupt, and it leads people into debt that can't be discharge in bankruptcy, and oftentimes follows them to the grave. There is a high number of them who drop out, too. Those who do finish, are oftentimes humiliated in job interviews when they learn that potential employers look down their noses at their diplomas. Again, that is not to suggest that folks who go to these schools aren't smart, capable, and educated. There is, however, no doubt that their degrees have a stigma attached to them, and many of them find it difficult to find full-time work.

Here's a snapshot of these folks at Kaplan who come from elite schools (this is just a sampling. For the full list of their "leadership" go here):

Andrew S. Rosen 
Position: Chairman and Chief Executive Officer
Education: A.B. Duke University; J.D. Yale University




Allison Rutledge-Parisi
Position: Chief Administrative Officer
Education: Kaplan Website states, "She is a graduate of Yale University and Columbia Law School, where she was named a Harlan Fiske Stone Scholar."


Darrell Splithoff
Position: Executive Vice President, Strategy and Innovation
Education: A.B. and M.M. from Northwestern University 




Bror Saxberg
Position: Chief Learning Officer
Education: Site states, "Saxberg holds a B.A. in Mathematics and a B.S. in Electrical Engineering from the University of Washington. As a Rhodes Scholar, he received an M.A. in Mathematics from Oxford University. He also received a Ph.D. in Electrical Engineering and Computer Science from M.I.T. and an M.D. from Harvard Medical School."




Melissa Mack
Position: Senior Vice President, Marketing, Kaplan, Inc.
Chairman, Kaplan Educational Foundation
Education: A.B. Brown University



Related Links
"Assessing the Integrity of Individuals and Institutions Connected to Higher Education," AEM (Aug. 30, 2011)

"Good Riddance to ‘For Profit Colleges,'" Gawker (Aug. 23, 2011)

"Here's something to celebrate! For-profit enrollment plunges!," AEM (Aug. 18, 2011)

"UPDATE: Exclusive Interview - Whistleblower David Goodstein Discusses Victory over Kaplan University" AEM (July 25, 2011)

"UPDATE: BREAKING! Whistleblower David Goodstein Slams Kaplan and Wins!," AEM (July 22, 2011)

Tuesday, August 30, 2011

Assessing the Integrity of Individuals and Institutions Connected to Higher Education

As an advocate for student loan debtors, I've been around the block more than once. That means I've gotten to know most of the players, as well as the victims, in this scheme. This evening I went to do some investigative research at a Baptist Church. I signed up to listen to someone talk about all the ways you can save money when you send your kids to college. I was polite, took my notes, and pretty much listened. However, I did want everyone in that room know that by June of 2012, outstanding student loan debt will hit $1 TRILLION.

When this college guidance guru asked the crowd how much a year of tuition, plus living expenses, and books cost, a lot of concerned parents threw out very accurate numbers. (This was not a dumb crowd, even though the speaker, to some degree, spoke down to us). Nope. These folks were smart, and knew a thing or two. So, once a few people tossed out the overall cost to attend University of Texas at Arlington, Baylor, SMU, etc., for one year, I added, "well, this figure says something. By June of 2012, outstanding student loan debt will hit $1 trillion."

I am pretty sure I heard someone gasp in the room.

The guru blinked and said, "we have someone who's really informed! Where did you get that number?"

I said, "are you familiar with Mark Kantrowitz and Finaid.org?" 

The guru indicated that he was familiar with Finaid.org, but I am not sure if he knew Kantrowitz's name. (For those of you who aren't aware, Kantrowitz is the go-to guy about college loans and so forth. He deals more with the front end of the problem, and not its aftermath. He's regarded as THE expert in the field, and is quoted in just about every article on student loans, student borrowing, etc.)

But why would this guru assume that we were all uneducated about the cost of college? 

I have to collect my notes. There will be a follow-up about the guru and his advice. My first impression? I'll admit, I am quite leery about these types of folks, but perhaps I'm wrong. This particular guru had been a photographer, until his business in advising parents with college bound students went "gang busters" recently. That's what he told the small audience of 18 people. 

I also found it frustrating that he was not forthcoming about his fees. I mean, why not?

When I first asked via email, he wrote me right back and said, "Don’t worry about our fees. They’re outrageously high and you’re probably not going to hire us.  That’s why we do these free public workshops." I asked him again, and he finally told me. They charge between $2,500 to $4,000, and I am not sure why. It seems if you did your own research on how to borrow, you wouldn't have to shell out that dough to someone in his area. I also found it strange that he initially refused to give me an estimate, and told me that I probably couldn't afford it. So, if people can't afford their services, then why are they doing these workshops? I mean, they have to be making money somehow. After all, he was able to quit his job as a photographer, and his wife is also on board.

Now, this fellow might be genuine. I am not sure. So, I'll reserve my judgments for now. I will say, I didn't particularly like that he started sending me Spammy-emails and calling me by my first name. People who are student loan debtors, parents, my husband (not all the time), friends, close colleagues, and family can call me Cryn. But this guy? No way. I prefer Ms. Johannsen

But for those folks reading this, you can call me Cryn. 

Gustave Moreau's Hera [1881]






Pillow Talk for Tuition: Guys Are Doing It Too - They're Seeking Sugar Daddies To Pay Off Their Student Loans!

Wow. Shocker. Not really.

So, Arianna Huffington was interviewed on MSNBC and discussed the student lending crisis. In that clip, which AEM wrote about, she told Lawrence O'Donnell that 245,000 college grads were seeking sugar daddies to pay off their loans. Well, the HuffPost has come out with another piece about men doing the same. (I don't cross picket lines, and don't appreciate the way the HuffPost treats their writers, so if you want to look up the piece, just google it).

But seriously. Who's surprised?

This is AN OUTRAGE. This is a national tragedy. It's obscene and twisted and wrong. I support sex workers, but people who are trying to go to college should not find themselves turning to SEX to pay for their tuition or for their student loan debt. What kind of country puts people in that sort of position?

"Yeah, so . . . I am studying philosophy . . ."

What makes you entitled?

Here's my answer: I am entitled because I want to rent my own apartment in the U.S.! What about you?


Part I: An Earthquake, Hurricane Irene, and AEM's Successful Trip To D.C.

As I mentioned in a previous piece, the trip to D.C. last week was tremendously productive. Most of you know that the trip made me feel good about the possibility of change for student debtors. That said, I think it's important to be realistic about relief options, but I am, at the moment, cautiously optimistic. Feeling that way is tremendous.

AEM has been around for roughly 2 1/2 years, and it hasn't even been a non-profit for a year yet. When I think back to when I first launched my blog, and where it is now, it is quite amazing to see how far it has come. But even more incredible than that, it is amazing to see how far we have come as a group. The most important change for the crew of debtors? A real sense of class consciousness exists now. Moreover, I see that more and more debtors are overcoming their shame. I am also hearing from more of you, and you are getting involved in so many incredible ways! All of this has been profoundly moving, and has enabled me to overcome my own personal shame about being a debtor, living with my in-laws, and depending upon them for groceries (see here and here). It is not my fault that I find myself in such circumstances. Like so many of you, I also believed that advanced degrees would be a ticket to a better life (I also believe higher education is a public good, something so many have forgotten). We were told that the moment we set foot in a classroom. We were told to go to college over and over and over again. So, we did just that, and now we're drowning in student loan debt, struggling to make ends meet, and (miraculously) yearning to be part of a political discussion! Well, I have news for everyone. We're no longer be ignored in DC. That is why we must return together in October.

On another note, I have made the decision to stay in the U.S. If I wanted to, I could be teaching abroad, making a good living (paying down my bills), enjoying life, etc. But it is important that I stay here and continue to ensure that all of our voices are heard through AEM. At the same time, it's not right that I am struggling every day to make ends meet, and can't support myself in my own country. It's an outrage. I am more outraged when I hear your stories, and listen to how much you struggle. It makes me furious, but also energetic!

As for me, why should I have to leave the U.S. to rent an apartment?!? That is ridiculous, and illustrates how backwards things have gotten in this country. We need to get back on track. People like you, and like me, should be playing a positive role in this society. We've been kicked to the curb, and for all the wrong reasons. That's why we need to band together, and say, "enough is enough!" That is why I remain committed to AEM and making it work, even if that means I'm running operations on a shredded shoestring budget.

I am tired of the sorry state of affairs. Those who continue to ruin the system and this country need to step aside. It's time for those of us who give a shit to step up to the plate. We believe in one another, we believe in creating a better world, and we want it now. I'm tired of this hokey "in the future" shit. It's shit. Plain and simple.

All of you know that there will be tremendous opposition - we've already experienced that - and the current administration is unwilling, or so it seems, to solve the student lending crisis. Incidentally, I've given them credit for their efforts to end FFELP and introduce the IBR program. But these steps are simply not enough. We need policymakers to stop conflating current borrowers with prospective/current students. Those are not the same categories. Current borrowers have received little, if any, relief. That is why we are fast approaching the $1 TRILLION MARK. I just took a quick peek at the Student Loan Debt Clock, and it's at a whopping $937 BILLION. (When you click on that link, it will most likely be higher).

But as I said, this outrage and frustration is not being ignored by some offices in DC. Nope. They heard me loud and clear. Stay tuned for a detailed update on my visit.

Related Links


"AEM's Agenda, August 22: Congressman Hansen Clarke's Office and SparkAction.org," AEM (Aug 22, 2011)


Monday, August 29, 2011

What Superb Spin!!! University of Nebraska Students FINE with Tuition Increase

Haha. Sorry. Haha. Excuse me. Hahaha. Crap. I can't help it. Bahahahahahahaha. This article has me in stitches!!! Apparently, students at the University of Nebraska are fine with the upcoming tuition increase. Don't you love this spin?!? Who's running the articles out of this newspaper? It seems the editor(s) have made it clear that there will be nothing negative to be said about the hallowed Uni of Nebraska, even when it comes to increases in tuition.

But luckily the story was "balanced." After the journalist interviewed students who didn't mind the increase of tuition, which will sink them further into debt upon graduating, they quoted a student who disagreed.

He said, "I'm glad I'm a senior." That quote was slapped on at the bottom of the newspaper article, and as journalists all know, basically nobody reads the last few lines of a piece. So! There you have it! Everybody is fine with tuition increases at the University of Nebraska. Keep up the great work! What a hard-hitting article.


Uh . . . Conflict of Interest Maybe? Nebraska Attorney General Jon Bruning Owns Lake House With Two Nelnet Executives!

Have we as a society given up the pretense of even trying to look legitimate?!? This story is a gas. It turns out these people - the lenders and certain politicians - don't just golf together! Nope. They own houses together. Nebraska Attorney General Jon Bruning, as reported by the Omaha World Herald, owns a lake house with two Nelnet executives. How's that for a cozy relationship?

Bruning is running for U.S. Senate. He sounds like just the type of person I want on the Hill!!!

Here's the funniest quote from that article: "Nelnet is a good, homegrown company that employs hundreds of Nebraskans in good jobs," Bruning said. Haha. He forgot to mention that they make their money through usurious practices and have turned millions of educated people into debtors for life. Yeah. Great company.

The company was recently sued by a former U.S. Department of Education researcher named Dr. Jon Oberg. Oberg filed a false claims suit against Nelnet and other student lenders. He accused them of taking advantage of a loophole and essentially defrauding taxpayers of $1 billion. The case was settled with Nelnet for $57.8 million. 

A Shining Example of Good Ethics: AG Jon Bruning


Related Links*


"AG Bruning’s Ethics on Trial," Missouri News Horizon (August 29, 2011)

"Nelnet News," AEM (July 12, 2011)


"Nelnet News," AEM (May 20, 2011)


* This is just a truncated list of the pieces I've written about Nelnet. If you wish to read more on AEM about the company, do a general search for the company. 

Saturday, August 27, 2011

Friday, August 26, 2011

Document Diary: Deliveries To Folks on the Hill

Since many of the folks, whom I met with in DC, are new contacts and had never met me before, I created two documents for them. The first one, which is pasted below and attached as a Google.doc here, offers a brief history of AEM. As I said already, this trip was enormously productive. I had over 10 meetings, and most of those were on the Hill. Moreover, I delivered documents, at the request of a student loan debtor, to Senator Barbara Boxer  (D-CA) and Congresswoman Doris Matsui (D-CA). I showed up unannounced to these offices, and their staffers were very welcoming. Matsui's staff was very impressive. The young woman offered to have their office reach out to this particular student debtor, and then she noted that my work was more policy-oriented.


Here's the brief history document. Stay tuned for the 4-page proposal on Monday morning. That will be followed by a full update of the offices I had meetings with (Also, a special shout out again to Paul Ramirez for creating such an absolutely beautiful and powerful logo for AEM. Love ya, Paul!)


BRIEF HISTORY OF ALL EDUCATION MATTERS

All Education Matters was created in July of 2009. AEM was, and continues to be, a research-based blog that covers the following subjects:  

1) higher education finance reform
2) higher education policy and legislation
3) student loan debt
4) the student lending crisis
5) economics/finance/the stock market
6) legal issues relating to universities (proprietary/non-profit)
7) employment information for millennials seeking work abroad 

AEM is a bi-partisan advocate for student loan debtors.

o Since all of these issues intersect with politics, AEM has a political edge. Being an independent watchdog and a voice for student loan debtors is my primary job. My readers are Tea Party supporters, moderate Republicans, independents, progressive Democrats, leftists, and so forth. I also work with Republicans and Democrats on the Hill to develop bi-partisan ways to address the ongoing problem of spiraling student debts. As long as a politician is willing to listen and is open to solving this problem, I don’t care what side of the aisle they’re on!

o AEM has forged strong relationships with congressional offices in DC since 2009

o AEM also works with numerous youth groups and think tanks

In September of 2010, when I was working and in living in S. Korea, I launched an online, fundraising campaign. The decision to become a non-profit was made after hundreds of supporters urged me to do so. Within a period of 2-3 weeks, I raised $1,000 via social media (I relied upon my blog, Facebook, and Twitter).

October 27th, 2010, All Education Matter was incorporated as a 501(c)(4) in the state of Delaware.  I am the founder & executive director. At that point, AEM’s primary purpose was to raise public awareness about the student lending crisis. While AEM still operates in this capacity, I am shifting gears. I am currently writing a book about the student lending crisis, and have drafted a multi-solution policy proposal for congressional offices to consider for new legislation. This proposal will also include pieces of legislation that are currently circulating. 

As a researcher and writer on the subject of student loan debt, I use qualitative and quantitative data, both of which have proven that the U.S. is facing a serious student lending crisis; by June of 2012, outstanding student loan debt will hit $1 TRILLION

I have worked with congressional offices on specific pieces of legislation which, if passed, could bring relief to millions of student loan debtors. This means that I am constantly connecting with politicians who are sympathetic to the cause.

MOST POPULAR ITEMS ON AEM (SHORT LIST):


2) “The Author’s Hour” – I recently launched this series in which I interview authors and experts in the fields of political science, economics, history, philosophy, etc. 

3) Testimonials from student debtors – these are personal stories from debtors who live all over the United States.

4) Reporting on breaking stories related to lawsuits, the Department of Education, etc., etc. 

5) Work on suicide and student loan debtors – there is a relationship between these two things, and I am currently forging a relationship with a non-profit that helps at risk youths.


PUBLICATIONS ON OTHER OUTLETS [TRUNCATED VERSION]



“Who’s Ted Nugent?” SparkAction.org, June 29, 2011









“The New Indentured Educated Class: If Only They Had Their Health,” New England Journal of Higher Education, November 18, 2010

“[My education] was a mistake,” An Indentured Educated Citizen Laments Her Education,” The Center for College Affordability and Productivity, August, 19, 2010


“The Plight of Current Borrowers: An Appeal for Immediate Relief,” – this paper was distributed to a town hall meeting that was sponsored by the Rev. Jesse Jackson and the Rainbow P.U.S.H. Coalition after I was unable to accept a special invitation from the Coalition to attend as a panelist in June of 2010.



Leaving DC, And Already Planning A Return Trip

As many of you know, this trip to D.C. has been enormously productive. I will be providing a detailed report on what I accomplished, whom I met with, where I was when the earthquake hit (ha!), and so forth. This trip has made me realize that I need to return for another one in October or thereabouts (What I really need to do is relocate to the East Coast. It's going to happen. I will get out of exile in Texas, but I am not sure when).

As for this next trip to D.C., I don't want it to be solo. I get lonely in those long, marble corridors, so having company would be very much appreciated - a Blackberry is no substitute for human interaction. That means we have to come up with a strategic plan that will enable people to join me and walk the halls on the House and Senate side to meet with our leaders and demand change.

One of the things I am going to bring up on my return trip is this: why not go after these schools for defrauding students? I think a number of you feel like you were defrauded, and that is something that hasn't been brought up during my meetings. We need to take aim at the institutions who have been responsible for creating the student lending crisis (and I am not just referring to the proprietary schools; I am talking about the non-profits, too), so I am going to get to work on this angle for my return visit. I just spoke to someone on this trip who had an outrageous story about what his financial aid office did to him - I realize the legislation has been written as such that it makes it nearly impossible to prove that the promissory notes we all sign are part of the scam. Once you sign those promissory notes, in many cases, schools adjust and change your funding at will. Yeah, they might call you in for "counseling: and inform you of changes, but there's a lot of fine print that these folks fail to cover. It's deeply troubling how much of the whole scheme is designed to put the student borrower at a disadvantage.

Returning to the October trip, if I had it my way, the next trip would look like this:

(a) 1-2 people from each state - I am realistic, and know that won't be possible, but a girl can dream, right?

(b) Those 1-2 people will set up appointments with their Senators and Representatives.

(c) I will set up specific meetings with my current contacts on the Hill (that's now close to 15 offices), and student debtors will join me for those talks.

(d) Lodging would be provided - again, AEM is on a shredded shoestring budget, so this wouldn't be remotely possible, even for a team of 10-20 participants . . . unless we were to raise an extraordinary amount of money. But . . . perhaps we could find student debtors in the area who would be willing to house people.

(e) Transportation - while I don't think this could be done if we were to have 1-2 people show up from every state, if, say, 10-20 people came, it could be possible to cover the cost of buses and metro. Cabs, as most of you know, are outrageously expensive here (on a side note, whenever I think about this, I get angry and think about how cheap it was to travel by cab in Seoul - why the hell can't it be like that here?!?). So if you were to "cab it" places, you'd have to shell out your own money for that. Sorry!

(f) Lunch/snacks - again, if 10-20 people came along, I think we could figure out a budget that would allow us to have at least one meal covered. It would be great to cover dinners, too, but I don't think that is realistic.

As you can see, if we succeeded in recruiting 10-30 people to come with me, it would essentially be a small army of student loan debtors in DC. They would be representing AEM and millions of other student loan debtors. How great would that be?!? We would go to as many offices as possible, share our stories, and urge our leaders to do something about the crisis.

I am also aware that the White House visits AEM from time-to-time. It is quite an honor to know that someone is visiting me from the White House! Whoever you are, let Mr. Roberto Rodriguez know that there are a number of people on the Hill who are deeply concerned about the student lending crisis. Let him know that I look forward to working with him in the future. (I've heard he's a really great guy).

In terms of applied activism, AEM is just getting started in this next phase. But I can see the change, and it's good. Indeed, I can see how much more progress has been made since I was last here in mid-January, and on that trip I met with Congressman Brad Miller (D-NC)!

Stay tuned for a more detailed update.

Related Links


"Member Notes: Meetings, Legislation, the hope of institutionalizing AEM, Inc.," AEM (January 18, 2011)



Thursday, August 25, 2011

[Part III] The Author's Hour: Mike D. Hais and Morley Winograd Address the Public Perception of Millennials

If you are an author and interested in being featured in AEM's new series called, "The Author's Hour," please send me an email (ccrynjohannsen@gmail.com). 

Mike D. Hais and Morley Winograd recently spoke to me about their forthcoming book, Millennial Momentum: How a New Generation is Remaking America (September 2011). This is the final part of our talk, and it is my last question. They are traveling across the country to share, so I encourage you to check out the dates and locations for their book tour (I'll be meeting Mike and Morley in Galveston, and am really looking forward to that). 


I think this final question about public perception of Millennials is really critical, and Mike's and Morley's answer - they make ten points - is great. I encourage folks to disseminate their remarks, because younger folks (and that includes those of us in our 30s) are really under attack through the use of institutional forces (there are individuals, too, but they wield power through institutions, so that's my focus in this critique).

Mike, Morley, and I are not alone in thinking, and agreeing, that there are troubling perceptions about Millennials. For instance, I spoke to a well-known author about the way older folks (not all of them, mind you) perceive youth - we talked about it over dinner on the first night I arrived in DC. The story she shared was anecdotal, but it hits on things that Mike and Morley discuss below. A good friend of hers thinks youth, well, basically suck. And they suck big time according to this older fellow.

At a time in which our social services for average Americans are being eviscerated, youth have become a menace (Henry A. Giroux, with whom I spoke several months ago, writes about this topic regularly). If you strip away services, and public education is one of those things, what happens to your society's youth? Their options, in many ways, have become incredibly limited already, and I fear it will only get worse. The ones who choose to go to college wind up graduating with mountains of debt that put the Himalayas to shame. (Then you have folks who go into the military to flee debt. A woman recently told me that she went to war to pay off her debt. She got her "head shot off," and finally got her loans discharged. She said jokingly, "that's a book right there"). So, if they don't go into the military - which is becoming harder to do - where do they go? What do they do? (And I am sure many of you are thinking about the recent events in London, just as I am). Those who are responsible for limiting their choices, and limiting it for millions of youth, start wagging their fingers, saying, "youth today . . . youth today are so selfish, entitled, and lazy." Yup. We erode social programs, leave folks with nothin,' and then point our fingers at those who are being screwed at every turn.

It ain't right, and that's what we have to change. That is yet another reason why Morley and Mike have given me hope.

On that note, let's here how they answered my final question.


CCJ: People (including reporters and journalists) oftentimes describe millennials as 'lazy,' 'politically-disengaged,' 'interested only in consumer goods,' etc., but what have your findings shown? Are these descriptions accurate?

Mike and Morley: As is often the case, the members of older generations make the mistakes of, on the one hand, believing that all generations develop in pretty much the same way and of being critical of younger generations when, in fact, they are different from their own. This has caused many older Americans to have misperceptions of the attitudes and behaviors of the Millennial Generation. Because we are asked frequently to deal with these misperceptions, here are of the 10 most common myths about the Millennial Generation:

1. Young people think and behave the same at all times. One generation is just like the one before it and the one that follows.

False: Each generation is different from the one before it and the one that follows. Today’s young people, the Millennials (born 1982-2003), are a 'civic' generation. They were revered and protected by their parents and are becoming group-oriented, egalitarian institution builders as they emerge into adulthood. Millennials are sharply distinctive from the divided, moralistic Baby Boomers (born 1946-1964) and the cynical, individualistic Gen-Xers (born 1965-1981), the two generations that preceded them and who are their parents.


2. Millennials are narcissistic, self-indulgent kids who think they are entitled to everything. 

False: Millennials have a deep commitment to community and helping others, putting this belief into action with community service activities. Virtually all Millennial high school students (80%) participate in a community service activity. Two decades ago when all high school students were Gen-Xers, only a quarter (27%) did so.

3. Millennials volunteer and serve because they are 'forced' to or are trying to polish their college application resume. 

False: Millennials volunteer for community and public service in large numbers long after their 'required' initial high school experiences. In 2006, more than a quarter (26%) of National Service volunteers were Millennials, at a time when Millennials comprised no more than 15% of the adult population. By contrast in 1989 when all young adults were members of Generation X, only 13% of National Service volunteers were in this age cohort.

4. Millennials became Democrats and liberals because they are hero worshipers of Barack Obama. 

False: Millennials identified as Democrats and liberals well before Obama emerged as a major political force with significant name identification. In 2007, Millennials identified as Democrats over Republicans by 52% to 30% and as liberals over conservatives by 29% vs. 16% (the rest were moderate). At that time, Barack Obama’s name identification was barely 50%, well below that of Hillary Clinton and John Edwards, his chief competitors for the Democratic presidential nomination. These attitudes have, for the most part, persisted throughout the sharp political conflicts of the first three years of the Obama presidency.

5. Millennials will become more conservative as they age. 

False: Party identification and ideological orientation are formed when people are young and are retained as they age.  Prior 'civic' generations, with similar belief systems to Millennials, kept that philosophy throughout their lives, something conservative ideologue, Grover Norquist, recognized when he referred to the lifelong beliefs of the revered GI Generation as 'un-American.' The only two generations that gave John Kerry a majority of their votes over George W. Bush in 2004 were the first sliver of Millennials eligible to vote and the last segment of members of the GI Generation, all of whom were at least 80 and many of whom were casting their final presidential vote. 

6. Millennials, like all young people, are apathetic and uninterested in voting.   

False: Young people’s proclivity to vote or not is not based upon their age but their generation’s belief in the efficacy of voting. Millennials are members of an activist and politically involved 'civic' generation. They have voted heavily in the past and will continue to do so in the future. According to CIRCLE, an organization that examines youth political participation trends, 6.5 million people under 30 voted in presidential primaries and caucuses in 2008, double the youth participation rate of 2000. Fifty-three percent of Millennials voted in the 2008 general election (59% in the competitive battle ground states), up from 37% in 1996 when all young voters were member of Generation X. Even in 2010, a very poor year for Democrats, Millennial voter turnout was about what it had been in the 2006 midterm elections, a Democratic landslide. 

7. Like Boomers and Gen-Xers before them, Millennials are cynical and disillusioned by the problems facing them and America.

False:  In spite of the fact that they are far more likely to be unemployed and far less likely than older Americans to have health insurance, Millennials are more optimistic than older generations. A May 2009 Pew survey indicates that about three-quarters of Millennials in contrast to two-thirds of older generations are confident that America can solve the problems now facing our country. These optimistic attitudes have persisted throughout the Great Recession and political turmoil of the past two or three years.


8. Millennials care only about what happens in their own country, community, and lives and not on what goes on in the rest of the world. 

False: Most Millennials have visited foreign countries and through social networking technology, are connected to friends around the world. They are open to working with people in other countries to solve the problems of the world community. Millennials are far more likely than older generations to support free trade agreements like NAFTA (61% vs. 40%) and far less likely to believe in military solutions to international concerns (39% vs. 58%). Millennials are also about three times more likely than seniors to have opinions on major international concerns like Israeli/Palestinian relations.


9. Millennials, like all generations, are rebels who are hostile to civic institutions and government. 

False: Millennials have significantly more positive attitudes toward government and its activities than older Americans.  Millennials are much less likely to believe that if the government runs something, it is usually wasteful and inefficient (42% vs. 59%) or that the federal government controls too much of our daily lives (48% vs. 56%). They are much more likely to feel that government is run for the benefit of all (60% vs. 46%).

10. Millennials are more focused on trivialities such as celebrities than on the big issues facing America. 

False: Unlike some previous generations, Millennial celebrities and musical tastes are more acceptable to and compatible with their parents’ values because they reflect the generation’s love of teamwork and service to the community rather than rebellion. For example, a recent Pew survey indicates that rock music is the preferred genre of Millennials, Gen-Xers, and Boomers. Rock, the music of rebellion in the 1950s and 1960s, is now mainstream. Moreover even as early as 2006, two years before Barack Obama’s candidacy, more than twice as many Millennials had voted for president than had voted on American Idol. 

Related Links



Mike and Morley in NYC

[Part II] The Author's Hour: Morley Winograd and Mike D. Hais Debunk Assumptions about Millennials

If you are an author and interested in being featured in AEM's new series called, "The Author's Hour," please send me an email (ccrynjohannsen@gmail.com). 

Mike D. Hais and Morley Winograd recently spoke to me about their forthcoming book, Millennial Momentum: How a New Generation is Remaking America (September 2011). This is the second part of our talk. 

CCJ: How have Millennials/Youth Groups responded to your book? What role did they play in its creation?

Mike and Morley: As a result of our first book, we have had the privilege of getting to know and work with many active and engaged Millennials. During the writing of the book we were able to reach out and make new friends among Millennials through such websites as The Next Great Generation and Millennials Changing America as well. This allowed us to include the 'voice of the Millennial Generation' in our newest book with specific comments included in individual chapters on education, the economy, and health care. In addition, we were very fortunate to be given advance insight into the Think 2040 project of the Roosevelt Institute’s Campus Network. Their project, involving over 2000 Millennials in a conversation about the type of future they would like to create for America resulted in the publication of their Blueprint for a Millennial America, which we quote extensively in the conclusion to Millennial Momentum.  

CCJ: We are living in a period of significant uncertainty. People are fearful about a lot of things, and rightly so. What role do you think Millennials will serve to shape the conversation? Do they seem less negative than other generations?

Mike and Morley: Every eighty years America has a rancorous, sometimes violent, debate about the nation’s civic ethos, i.e. what should be the scope and purpose of government.  The first occurred during and after the Revolutionary War and resulted in the most fundamental documents of our democracy—the Declaration of Independence, the Constitution and the Bill of Rights. The second took place during the Civil War. The 13th, 14th, and 15th Amendments codified the outcome of that debate, but not until the country was literally torn asunder over the question of ending slavery and extending the privileges of freedom and equality to African-Americans.  And in the 1930s, the economic deprivations experienced by most Americans from the excesses of the Industrial Revolution, led to support for a 'New Deal' for the forgotten man that placed the responsibility for economic stability, growth and opportunity squarely on the federal government.  Each of these periods was a time of great Fear, Uncertainty and Doubt, or FUD. And in each case the resolution of the debate depended on the beliefs of a rising, young civic generation becoming the dominant value system of the country, overturning the more ideologically rigid ideas of the older generations then in power. 

We believe Millennials will play a key role in ending this current period of FUD by bringing their beliefs and behaviors to the center of American civic life. Because of its sheer size, we think the Millennial Generation will have the numbers and unity of purpose to create a consensus around its approach to solving the nation’s problems. The positive, upbeat, optimistic attitudes of Millennials will eventually triumph over the doomsayers and doubters of America’s future and place a stamp upon America’s future as enduring and positive as those of our Founding Fathers and the GI Generation. 


Stay tuned for the final installment! 


Monday, August 22, 2011

The Author's Hour: Morley Winograd and Mike D. Hais and their Search to Understand Millennials

If you are an author and interested in being featured on AEM in this new series called, "The Author's Hour," please send me an email (ccrynjohannsen@gmail.com). 

Mike D. Hais and Morley Winograd are political scientists who found themselves interested in Millennials. This interest turned into two books, one of which is being published this coming September. Millennial Momentum: How a New Generation is Remaking America is their latest work. Mike and Morley sent me an advance copy last week, and I've already devoured most of it. Their statistics about higher education, as well as the conclusions they draw, are golden. In addition, their take on the Millennial generation has given me a great deal of hope, something that is hard to come by at this juncture in U.S. history.

Besides being two amazing men and superb researchers, who are they exactly? 

Morley Winograd is a Senior Fellow at the University of Southern California’s Annenberg School’s Center on Communication Leadership and Policy. He served as senior policy advisor to Vice President Al Gore and director of the National Partnership for Reinventing Government (NPR) from December 1, 1997 until January 20, 2001. 

Mike D. Hais served for a decade as Vice President, Entertainment Research and for more than 22 years overall at Frank N. Magid Associates where he conducted audience research for hundreds of television stations, cable channels, and program producers in nearly all 50 states and more than a dozen foreign countries. Before that, he was a pollster for Democrats in Michigan. In addition, Mike was an Assistant Professor of Political Science at the University of Detroit.

[These bios above were copied and truncated. For their full ones, visit here]. 

CCJ: I know a lot of my readers at AEM know who are you two are, but for those who don't know about your new, insightful book on Millennials and so forth, please share a few things about how you came to this project, how long you've know one another, and so forth. Also, what's the title of your forthcoming book?

Mike & Morley: Our new book, Millennial Momentum: How a New Generation is Remaking America (September 2011), continues the work that resulted in the publication of our first book entitled Millennial Makeover: MySpace, YouTube and the Future of American Politics (2008).  Both books flow from our fascination with and optimism about the impact members of the Millennial Generation, Americans born between 1982 and 2003, will have on this country.  We believe that the generational cycle theories of William Strauss and Neil Howe, detailed in their books, Generations (1991) and The Fourth Turning (1997), have enormous powers to both explain US history and to predict what’s ahead for the nation. When we first read those books two decades ago we decided to apply the generational frame work to an arena in which both of us had great interest and experience—politics.   Using Mike’s background in survey research and political polling and the generosity of  his former employer,  Frank N. Magid Associates, the world’s leading news and entertainment market research and consultation firm, we were able to empirically test the validity of Strauss and Howe’s theory using rigorous survey research methodologies. Our success in accurately forecasting the results of the 2008 election in our first book, which was written more than a year before Barack Obama was elected president, clearly bore out the usefulness and accuracy of generational theory in understanding American politics. In our newest book, we use both Magid and Pew Survey Research center data to  predict the trajectory of American life over coming decades in areas such as government and politics,  education and the workplace,  family life and religion, and even  entertainment and sports.   

It all began in the late 1970s when I [Morley] was the Chairperson of the Michigan Democratic Party and I [Mike] was a political science professor at the University of Detroit with an interest in political polling. We met at the HQ of the Michigan Democratic Party on Jefferson Avenue in Detroit and a lifelong friendship and partnership began. Perhaps our first major success as a team was in 1982 when we used polling to devise a strategy based on appealing to moderate ticket splitting voters in Detroit and its suburbs to help elect Jim Blanchard as the first Democratic governor of Michigan in more than two decades. A year later, I [Mike] began a 22+ year career with Magid. Meanwhile, Morley began a journey that took him to the top marketing echelons at AT&T and positions as the head of Al Gore’s reinventing government efforts during the Clinton administration, and the leadership of the Telecom Management program at USC’s Marshall School of Business. We moved to Southern California in the early 1990s and when we both retired about 15 years later, our joint writing career started.


CCJ: I have always had an interest in generational differences, too. It was something I studied when I was working on my Ph.D. at Brown. Of course, I was not carrying out research as a political scientist, but I understand your angle, and it's fascinating. 

What do you think are the most distinct things that define the Millennial Generation?

Mike & Morley: The most distinctive aspect of the Millennial Generation is its strong belief in taking collective action primarily at the local level to solve national problems [my emphasis]. The generation’s unique background leads it to take on challenges by combining pragmatism and idealism.   Like 'civic' generations before them, Millennials are optimistic about the future because they believe they can change what isn’t working and build new institutions that will work better than existing one have.  While many older people focus on the generation’s facility with new technology, particularly social media, they often fail to realize that the Millennial Generation’s focus on sharing and searching for group consensus is creating a brand new way to take on society’s challenges and address them and is, in fact, it’s most important characteristic.

Demographically, Millennials are the largest and most diverse generation in American history. There are now about 95 million Millennials, 10 million more than Baby Boomers and twice as many as Generation X. Forty percent of Millennials are non-white—African-American, Asian, Hispanic, and people of mixed race. About one-quarter of American adults are now Millennials. At the end of this decade, when the youngest Millennials become adults, more than one-third of US adults (36%) will be a Millennial. Any generation with these numbers cannot help but shape American life for decades.

CCJ: Your book tour is beginning soon. What cities will you be visiting? 

Mike & Morley: We wrote both of our books primarily to explain the Millennial Generation to older generations and make them aware of the possibilities and promise of this generation. We are therefore very pleased to be invited to a number of forums in September and October to talk about the book and its message.  Key events include:

September 7, 2011. USC’s Annenberg School’s Center for Communication Leadership and Policy will host a lunch time discussion on campus at the Tutor Center of the book’s message about the 2012 election. 

September 15, 2011. The DC based think tank, NDN will formally launch the book’s publication with a noon event at their headquarters in DC at 729 15th St. NW, DC 20005. 

September 16, 2011.  We will have the rare privilege of talking about Millennial Momentum at Busboys and Poets, 14th & V. St. Washington, DC.

September 20, 2011. We visit the Houston area, after a private book party with friends and family in Detroit over the weekend, to speak to Millennials and their impact on non-profits and religious organizations at B’Nai Israel Temple in Galveston, TX and the Brazos book store in Houston, TX. 

September 22-28, 2011. will be spend in Southern California, talking about the book on Larry Mantle’s Air Talk from 11:30 to noon on KPCC, Los Angeles as well as book parties in Los Feliz (September 24)  and La Jolla (September 28). 

October 1, 2011. We return to DC and to one of our favorite book stores, Politics and Prose for a 1 PM event. 

October 4, 2011. We participate in a panel at the Manhattan Institute at St. Francis College, Founders Hall from 6 to 8 PM. 

October 6, 2011. We speak at an evening event at the Eagleton Institute at Rutgers University from 6:45 PM until 8:30. 

The following week will be spent in the Boston area with events planned at Harvard, Tufts and a special reception with our friends at the blog site, The Next Great Generation. 

October 20, 2011. We return home to Los Angeles for a book signing at Vroman’s in Pasadena, named the nation’s number one independent bookstore. 

All of these events and more are noted on our calendar on the book’s website, www.millennialmomentum.com.

On that note, stay tuned for the next interview questions. I'm looking forward to meeting Mike and Morley in Galveston in September, and I hope that some of you are able to make it to their talks across the country. 

Mike and Morley in NYC






AEM's Agenda, August 22: Congressman Hansen Clarke's Office and SparkAction.org

I am headed to the Hill today with a proposal in hand. It offers a multi-solution approach. First up? A meeting with Congressman Hansen Clarke's aides about his proposal to forgive student loan debt. After that, I'm hooking up with a great - and superbly funny - woman who works at an awesome org, Spark Action.

Once I've ironed out the details for the proposal, I'll post that document online.

On a personal note, it feels great to be back. I feel like I'm home, and can't wait to relocate to the east coast again. Incidentally, our flight to DC was absurd. We were scheduled to fly from Dallas to National, but DC was hit by strong thunderstorms, so the plane flew above the city for over an hour. Since we were running low on gas, the pilot, who was quite funny, told us that we were maybe headed to Greensboro, NC. Luckily, we didn't head there. Instead, the flight was diverted to Dulles. We refueled in Dulles and then flew into National! Yup. It was a whopping 48-mile flight, and took less than 20 minutes. Out of the thousands and thousands of flights I've taken in my life, this one was the shortest and silliest. But we made it safe and sound, and I am ready to get to work!

Stay tuned. AEM is stronger than ever, and moving forward. Just remember to grab yer surfboards!


Saturday, August 20, 2011

[Announcement] New Series: The Author's Hour

I am pleased to announce a new series on AEM called "The Author's Hour." This series will entail interviews with  authors who are already published or on their way to being published. The subjects will be wide ranging. We'll talk to experts from the fields of economics, history, sociology, political science, philosophy, literature, etc. The intent of this new series is to connect with authors whose work intersects with my own. This way, it will allow me to introduce my readers to other authors who are: 

  • concerned about the student lending crisis
  • other major societal problems
  • interested in my work as a political activist for the indentured educated class
These conversations will also provide me with new insights for my ongoing research and projects on the student lending crisis, higher education finance reform, and so forth. Since I have had, and continue to have, such inspiring conversations with candidates, I want to share the discussions I have had with inspiring authors, too. 

Both series illustrate the exchange of ideas between people. As we all know, we don't come up with concepts or theories on our own (everything is derivative - it's new analysis that matters). In order to be effective as candidates, political activists, community leaders, intellectuals, parents, teachers, etc., we must be open to sharing with one another. I've been reminded of this a lot lately, as I've had the privilege of working with so many bright people and outstanding orgs. These folks come to the table with different experiences, educational backgrounds, opinions, etc., and deepen my own understanding of the world. It's truly inspiring. Here at AEM, we believe in the power of reciprocity. We do not believe that ideas are confined within bubbles or one person's brain. And the folks with whom I work feel the same way. That's one of the reasons I have changed the series. As you'll see below, under "Related Links," this idea was actually launched about a year ago, but at that point, I called it "Conversations that Matter." The new title invokes a sense of learning from our guests, and truly highlights their own work.

Let's turn to the first interview!

It is with great pleasure to introduce the first two authors in this new series. There names are Morley Winograd and Mike Hais, and they are the authors of a forthcoming book called, Millennial Momentum: How a New Generation is Remaking America (Rutgers University Press, September 2011). 

I spoke with Morley and Mike recently about politics and the economy, millennials and the student lending crisis. (We also discussed how the weather is almost always terrible in Dallas. The day I spoke to them, it was 110 degrees outside. Texas has experienced extreme heat this summer. For 8  miserable weeks, we had temperatures above 105 degrees. I appreciated the fact that Morley and Mike were sympathetic!)  

In any event, their book has given me a great deal of hope about our country's future. 

Let's hear what they have to say about these issues!

Stay tuned for the interview (it's lengthy, so I am breaking it up into several parts). 

Flow of Ideas - Here's how AEM functions and Why It is Effective

Related Links


"Truthout.org: Interview with Henry A. Giroux," AEM (April 22, 2011)

"Conversations that Matter: Alan Nasser (Part IV)," AEM (March 4, 2011)

"Alan Nasser (Part III)," AEM (February 28, 2011)

"Alan Nasser (Part II)," AEM (February 27, 2011)

"Alan Nasser (Part I)," AEM (February 24, 2011)

"Conversations That Matter: Claudia Dreifus Talks About Why Colleges Are Failing U.S. Students," AEM (September 12, 2011) - PSSST! The paperback version is now available, and they reference my work as a political activist and give me credit for the term, "indentured educated class." 

Friday, August 19, 2011

Thomas Friedman Suggests We're Not Working Hard Enough - Are You F*$@ing Serious?!?

Does Mr. Friedman live under a rock? In a recent puff piece, he tries, with all of his intellectual might, to explain why people need to study harder, work smarter, and adapt quicker (his words, not mine). It's like that whole "work smarter, not harder" platitudinous bullshit I used to hear at jobs I had in corporate restaurants and department stores.

He begins by discussing the recent global uprisings, calling them all part of an "information technology revolution," and concludes that it is the "most important trend in the world today."

Here, I agree with him. He's right. It is the most important trend in the world today. But his overall points are reductive, and he fails to understand - or so it seems from this piece - that the decline in the middle class has been happening for over 3 decades, and before we were all connected with our iPhones, our Googlies, our Androids, blah, blah, blah.

But here's what gets me the most riled up about this piece - his advice. He goes on to say:
And [this trend] is a critical reason why, to get into the middle class now, you have to study harder, work smarter and adapt quicker than ever before. All this technology and globalization are eliminating more and more 'routine' work — the sort of work that once sustained a lot of middle-class lifestyles.
Hahaha. Sorry. Pardon me. Hahaha. Whoops. There it goes again. All right, I've gotten a hold of myself.

Is he serious?!? We need to study harder, work smarter, and adapt quicker?!? Is this guy a shill for neoliberalism?!? Oh, wait. I forgot. Sorry. Here in the U.S., we're clearing not studying hard. We're definitely not working 'smarter' (God, his language is so vile). And apparently we have no idea what it means to adapt.

He also argues, "unemployment today still remains relatively low for people with college degrees." That's true . . . but that doesn't paint an accurate picture. So people with college degrees have a higher rate of employment versus those who have high school diplomas. But, and this is something I've pointed out before on AEM, what sorts of jobs do these educated folks have? Because if they are flipping burgers or serving corporate-slop-hot-slurpees at a Starbucks, I don't think the figures look so good. In addition, Mr. Friedman fails to mention the fact that most of these folks with college degrees have mountains of student loan debt.

As for the comments about us needing to work harder . . . For starters, we all work our asses off, Mr. Friedman. Millions and millions of us are working our asses off, and we're no longer a part of the middle class (we're in some sort of odd limbo, and it sucks, because it's hard to comprehend). I study hard, too. I'm not a student, but I still study, and I do it very 'hard.' As for adapting . . . wow . . . where shall I start? Again, I have to ask, are you f$*%@ing kidding me?!?

You want to know how people have adapted here?

They live in trailers and drive all over the country for work, Mr. Friedman.

They live with their parents or their in-laws (I'm in this camp). That's riiiight. I have adapted, Mr. Friedman. I could be making a great living in Dubai or South Korea (I adapt so easily, I've lived in 2 foreign countries), but I have decided to adapt here in the U.S. and run a non-profit on a shredded shoestring budget. I have adapted by living with my in-laws as a married woman with years of professional experience and loads of education.

Others are leaving the country - like I did - to start afresh, and find work.

How's that for adapting, Mr. Friedman?

To add insult to injury, there is a new org called Getting Smart. Apparently, we're not smart, and that's why millions of us are underemployed or unemployed. It's our fault. It has NOTHING  to do with systemic collapse and the rise of a f*%@ing oligarchic state. Hey, Getting Smart! Did you receive the memo?!? We're smart. We're damned smart. You're pointless. That's what the memo said.

We're so damned smart, that we're ahead of you and Mr. Friedman. So ahead, you're in the damned dust. Get those cobwebs outta your head, and open your eyes a little!


 Mr. Friedman, not thinking hard enough