I have never covered the economy in a focused way before this project, but I enjoyed the challenge of learning about the economy and how to cover it.
I always understood the principle that journalists allow nothing to get in the way of a project’s deadline, but I never fully experienced that principle until now, when I had multiple sources fall through and had to scramble to locate more. I learned that some story ideas will appeal much more to one’s audience than others, and it is important to let the ones go that do not work. I liked my first idea, but my second topic (the tuition and fees freeze) is much more applicable to my audience. It will make their connection to the broad concept of “the economy” real.
One of my best sources came from a phone call to the UMass President’s Office when I was trying to reach the director of communications.
I hadn’t thought of speaking to David McDermott, assistant to the UMass President for government affairs—I didn’t even know his position existed! However, he gave me some of my best information. Finding him serendipitously taught me that sources can come from unexpected places, and it is my job to know and seek out the lesser-known sources as well as the commonly expected ones. I also learned the importance of establishing relationships with sources, especially in economic stories, where having a knowledgeable source base is so important. In fact, one of my sources (Katy Abel from the Department of Higher Ed) called me back so quickly because I interviewed her for a project with the Daily Collegian.
I also learned a lot about the economy, specifically the student loan industry. When my podcast changed focus to the differences between student loan terms and other loan terms, I realized that there is much more devastating information on student loans, especially Sallie Mae, than I knew of.
Alan Collinge, founder of Student Loan Justice, is right in his accusation of unfair student loan lending practices between the government and student loan companies: Sallie Mae made $84 billion in revenue from the Department of Education servicing contracts in 2012. This means that taxpayers are funding a system where Sallie Mae receives an 11 percent commission for every loan it rehabilitates.
I also learned that the federal government took away consumer protections for student loans that are still included in other kinds of loans. I researched this and found that the 2005 Bankruptcy Abuse and Consumer Protection Act took away borrowers’ ability to discharge student loans, federal and private, in bankruptcy unless “undue hardship” could be proven, which excludes common problems like the inability to pay the loan due to lack of employment. No one with less than a severe disability meets the standard. I also learned that Sallie Mae can and does seize the social security benefits of disabled people.
I also learned that students’ lack of knowledge about their debt is a much bigger problem than I thought. A study found that only half of college students could name the amount of debt they had within $5,000, and of those that could not, most underestimated their debt. Among students who had federal loans, 28 percent reported that they didn’t have federal loans and 14 percent reported that they didn’t have loans at all.
I also learned that colleges often do not attempt to educate their students on what taking out a student loan means. The Project on Student Debt found that some college and university officials don’t publicize their contact information, use technical terms students do not understand, and provide materials only in English when many college students are non-native-English speakers. I also learned what may be fueling students’ lack of knowledge: technology and federal regulations enable borrowers to apply for loans on the same form that they apply for grants, with minimal in-person counseling requirements. Students can simply read the terms of the loan online, which is also where they sign the master promissory note.
Covering the economy has taught me that my original suspicions about the moral indefensibility of student loan company practices were not severe enough. The project made the abstract principles of lack of knowledge about the student loan system and the abuse student loan lenders legally get away with much more real and important to me.
The Economy of College 