New Jersey Business Beat with Raven Santana
Millions push to cancel student loan debt
6/19/2021 | 26m 46sVideo has Closed Captions
Rhonda Schaffler talks to education experts about the effort to forgive student loans.
Rhonda Schaffler sits down with educators and advocates to discuss the effort to forgive student loans, how the crisis is contributing to the nationwide staffing shortage and solutions beyond canceling debt. Plus, Rhonda breaks down the major headlines of the week, including the debate over vaccine mandates in the workplace.
Problems playing video? | Closed Captioning Feedback
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New Jersey Business Beat with Raven Santana is a local public television program presented by NJ PBS
New Jersey Business Beat with Raven Santana
Millions push to cancel student loan debt
6/19/2021 | 26m 46sVideo has Closed Captions
Rhonda Schaffler sits down with educators and advocates to discuss the effort to forgive student loans, how the crisis is contributing to the nationwide staffing shortage and solutions beyond canceling debt. Plus, Rhonda breaks down the major headlines of the week, including the debate over vaccine mandates in the workplace.
Problems playing video? | Closed Captioning Feedback
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>>> THIS WEEK ON "NJ BUSINESS BEAT."
MANDATE DEBATE.
CAN YOUR EMPLOYER FORCE YOU TO GET THE COVID VACCINE IN ORDER TO RETURN TO WORK?
>>> PLUS, PAYING PEOPLE TO GET BACK TO WORK.
ONE NEW JERSEY LAWMAKERS' PLAN TO USE THE STATE'S CASH RESERVE TO SOLVE THE STAFFING SHORTAGE.
>>> AND WE PUT THE STUDENT LOAN CRISIS IN FOCUS, TO THE EFFORT TO CANCEL STUDENT LOANS TO THE IMPACT IT'S HAVING ON EMPLOYERS AND THEIR WORKERS.
THAT'S AHEAD ON "NJ BUSINESS BEAT."
>> Announcer: THIS IS "NJ BUSINESS BEAT," WITH RHONDA SCHAFFLER.
>>> HELLO, I'M RHONDA SCHAFFLER.
THANKS FOR JOINING US ON "NJ BUSINESS BEAT."
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>>> A VACCINE MILESTONE FOR THE STATE MEANS A CHANGING WORK PLACE FOR THOUSANDS OF NEW JERSEY RESIDENTS.
AS OF THIS RECORDING, 4.65 MILLION STATE RESIDENTS ARE FULLY VACCINATED AND NEW JERSEY EXPECTS TO REACH THE GOAL OF 4.7 MILLION IN THE NEXT FEW DAYS.
THE VACCINATION RATES ARE GIVING BUSINESS LEADERS CONFIDENCE TO CALL WORKERS BACK TO THE OFFICE AND MANY ARE MANDATING VACCINES FOR THEIR EMPLOYEES.
A RECENT COURT RULING ON VACCINE MANDATES IS GETTING A LOT OF ATTENTION.
A FEDERAL JUDGE IN HOUSTON BACKED VACCINE MANDATES DISMISSING A LAWSUIT FILED BY HOSPITAL EMPLOYEES WHO CHALLENGED THEIR EMPLOYERS' VACCINE REQUIREMENTS.
COULD NEW JERSEY COMPANIES FACE SUCH A LEGAL CHALLENGE.
WE ASKED ANNA MARIA, A PARTNER IN A LAW FIRM.
ANNA MARIA, A LOT OF ATTENTION FOCUSED ON THIS TEXAS RULING ABOUT VACCINE MANDATES, WHAT IS YOUR TAKEAWAY FROM THAT DECISION?
>> IT'S NOT SURPRISING THE DECISION.
I MEAN, WE HAVE ALWAYS BEEN ADVISING OUR CLIENTS THAT IT IS IMPORTANT IF THEY'RE GOING TO HAVE EMPLOYEES COME BACK THAT THEY INSTITUTE A VACCINE MANDATE AND IT'S NOT SURPRISING THAT IT'S A HEALTH CARE INSTITUTION THAT IS THE FIRST -- YOU KNOW, THAT'S THE SUBJECT OF A DECISION LIKE THIS.
>> NOW WOULD YOU EXPECT THERE TO BE LEGAL CHALLENGES IN NEW JERSEY?
>> YOU KNOW, IF I HAD A MAGIC BALL WITH THAT, RHONDA, I THINK I WOULD BE IN A DIFFERENT POSITION RIGHT NOW.
BUT I THINK THAT NEW JERSEY MAY BE IN A DIFFERENT POSITION IN TERMS OF THE FACT THAT IT'S BEEN EDUCATING AND ENCOURAGING ITS, YOU KNOW, RESIDENTS TO GET VACCINATED.
AND SO, LET'S HOPE THAT THAT'S NOT THE CASE, HOWEVER, THIS COULD BE A LITIGIOUS STATE SO IT WOULD NOT BE SURPRISING TO ME IF THERE'S LITIGATION, IF AND WHEN EMPLOYERS REQUIRE THEIR EMPLOYEES TO BE VACCINATED.
>> THE OTHER QUESTION WOULD BE, IF LITIGATION DOESN'T OCCUR IN NEW JERSEY BUT OCCURS IN STATES AND THOSE CASES EITHER WAY MOVE UP ON APPEAL, IS THIS SOMETHING THAT CAN EVENTUALLY GO TO THE SUPREME COURT, AN ISSUE LIKE THIS?
>> I THINK THAT'S EXACTLY WHAT THE TEXAS DECISION IS LEANING TOWARDS.
I UNDERSTAND THEY APPEALED IT TO THE FIFTH CIRCUIT AND DEPENDING ON WHAT HAPPENS THERE, MOST LIKELY THEY'LL APPEALING TO THE SUPREME COURT OF THE U.S. AND THAT CAN IMPACT REALLY THE DECISIONS OF WHAT EMPLOYERS WANT TO DO AND TAKE ON.
MY EXPERIENCE HAS BEEN THAT EMPLOYERS HAVE BEEN HIGHLY ENCOURAGING THEIR EMPLOYEES TO GET VACCINATED, VERSUS MANDATING THE VACCINES, BUT SINCE THINGS ARE CHANGING, THE LANDSCAPE IS CHANGING AND EMPLOYERS ARE DECIDING TO WANT TO OPEN UP THEIR OFFICES, THAT TREND MAY CHANGE.
>> AND WHAT ARE YOU ADVICING IN TERMS OF VACCINE MANDATES?
IS THAT SHOWING PROOF OF VACCINATION IN TERMS OF BRINGING YOUR CARD TO WORK?
>> ACCORDING TO THE EEOC AND WHAT WE HAVE BEEN ADVISING OUR CLIENTS IS THAT IF THEY ARE GOING TO MANDATE THE VACCINES AND FOR PURPOSES OF PLANNING, THEY CAN CERTAINLY ASK THEIR EMPLOYEES WHETHER OR NOT THEY HAVE BEEN VACCINATED AND THEY CAN CERTAINLY ASK THEIR EMPLOYEES TO SHOW THEM PROOF OF VACCINATION.
>> IF AN EMPLOYEE REFUSES, DOES THAT EMPLOYEE HAVE A RECOURSE IF THEY WANT TO CONTINUE TO WORK FOR THAT COMPANY?
>> THAT DEPENDS, RHONDA, RIGHT, WHY THE REFUSAL.
IS IT BASED ON A DISABILITY, A RELIGIOUS BELIEF?
THEN THE EMPLOYER HAS AN OBLIGATION TO ENGAGE IN WHAT WE CALL THE INTERACTIVE PROCESS, RIGHT, WHICH IS A CONVERSATION ABOUT WHAT IS NEEDED FOR THE EMPLOYEE TO COME BACK TO WORK.
BUT ULTIMATELY, IF, YOU KNOW, THERE'S A -- THE PERSON DOES NOT WANT TO COMPLY WITH A REQUEST FROM THE EMPLOYER, TECHNICALLY THEY'RE AT WILL, AN AT WILL EMPLOYEE SO THE EMPLOYER CAN FIRE THE EMPLOYEE.
BUT FIRST THE EMPLOYER HAS TO TAKE A STEP BACK AND UNDERSTAND WHY THE EMPLOYEE IS REFUSING TO GET THE VACCINE.
>> IS THIS ONE OF THE TOUGHER ISSUES COMPANIES IN NEW JERSEY HAVE HAD TO DEAL WITH IN RECENT YEARS?
>> YOU KNOW, I THINK IT IS.
WE ARE DEALING WITH A PANDEMIC, TRYING TO COME OUT OF A PANDEMIC, IT'S NOT NECESSARILY SOMETHING THAT PRIVATE EMPLOYERS OR GENERALLY PUBLIC EMPLOYERS HAVE HAD TO, YOU KNOW, MAKE A DECISION ON.
WE HAVE INSTITUTIONS LIKE SCHOOLS THAT REQUIRE STUDENTS OBVIOUSLY TO GET VACCINATED.
SO THE ISSUE IS NOT NECESSARILY A NEW ONE.
THE LAW IS KIND OF ESTABLISHED, A PRACTICE HAS BEEN ESTABLISHED.
BUT BECAUSE NOW, YOU KNOW, BIG CORPORATIONS, EMPLOYERS HAVE NOW -- ARE FACED WITH THIS ISSUE.
IT'S A LITTLE DIFFERENT IN THAT NOW, YOU KNOW, PRIVATE EMPLOYERS ARE PUT IN THE POSITION WHERE THEY HAVE TO MAKE THIS DECISION WHETHER THEY'RE GOING TO STRONGLY ENCOURAGE VACCINES OR MANDATE.
>> ANNA MARIA, THANK YOU SO MUCH FOR SHARING YOUR EXPERTISE ON THIS LEGAL CASE AND WHAT LIES AHEAD IN NEW JERSEY.
I APPRECIATE IT.
>> THANK YOU, RHONDA, I APPRECIATE BEING HERE WITH YOU AS WELL.
>>> GETTING PEOPLE BACK TO WORK HAS BEEN A CHALLENGE FOR SOME NEW JERSEY BUSINESSES STRUGGLING TO FILL OPEN POSITIONS.
CONGRESSMAN JOSH GOTJEIMER OFFERED AN IDEA THIS WEEK TO TRY TO GET RESIDENTS HIRED BY COMPANIES WHICH NEED THEM.
>> WE CONNECT UNEMPLOYED JERSEY WORKERS WITH BUSINESSES IN NEED TO RETURN TO THE WORK PLACE AS QUICKLY AS THEY CANNOT ONLY TO REENERGIZE WORK PLACES BUT ALSO TO GET GOOD PAYING JOBS AND HELP SUPPORT THEIR FAMILIES.
SO TO HELP BUSINESSES AND RESTAURANTS, I'M ASKING THE STATE TO CONSIDER IMPLEMENTING A BACK-TO-WORK INCENTIVE PROGRAM FOR THOSE CURRENTLY RECEIVING UNEMPLOYMENT BENEFITS IF THEY RETURN TO WORK AUGUST 1ST AND ARE STILL ON THE JOB ON SEPTEMBER 1ST.
>> IN SOME PARTS OF OUR STATE YOU'LL FIND NEW WAREHOUSE DEVELOPMENTS DOTTING THE LANDSCAPE.
PROPONENTS SAY THE SPRAWLING WAREHOUSES BRING NEW JOBS AND TAX REVENUE TO COMMUNITIES, BUT NOT EVERYONE IS WELCOMING THEM.
WE SPOKE TO JOHN HURTLE ABOUT ONE COMMUNITY'S EFFORTS TO STOP WAREHOUSE DEVELOPMENTS.
>> YOU'VE BEEN WRITING A LOT ABOUT WAREHOUSE EXPANSION HERE IN NEW JERSEY AND YOU WROTE ABOUT A CASE WHERE RESIDENTS FILED A LAWSUIT AGAINST THE ZONING BOARD, WHAT IS THAT ISSUE IN THIS PARTICULAR LAWSUIT?
>> WELL, THIS IS BELIEVED TO BE THE FIRST COMMUNITY LAWSUIT THAT'S BEEN BROUGHT AGAINST A LOCAL ZONING AUTHORITY.
AND WHAT THIS -- WHAT THE LAWSUIT SAYS IS THAT THE ZONING, THE ZONING BOARD OF ADJUSTMENT WAS WRONG TO APPROVE AN APPLICATION FOR -- FOR A WAREHOUSE.
ACTUALLY, TWO WAREHOUSES, TOTALING ABOUT 360,000 SQUARE FEET.
AND WHAT PEOPLE ARE CONCERNED ABOUT IS AIR QUALITY IN AN AREA WHERE AIR QUALITY IS ALREADY OFFICIALLY RATED AS QUITE POOR AND THEY'RE CONCERNED THAT THIS -- AN INFLUX OF TRUCKS AND CARS ASSOCIATED WITH THESE WAREHOUSES ARE GOING TO MAKE THOSE CONDITIONS EVEN WORSE.
>> JOHN, HOW MUCH DISSATISFACTION IS THERE GENERALLY IN NEW JERSEY'S COMMUNITIES WHEN IT COMES TO WAREHOUSE DEVELOPMENT PROJECTS?
>> WELL, YOU THINK THERE'S A LOT OF CONCERN NOW, PEOPLE RECOGNIZE, OF COURSE, THAT THERE ARE ECONOMIC ADVANTAGES TO THIS INFLUX OF WAREHOUSES THAT WE'RE SEEING.
BUT PEOPLE ARE VERY CONCERNED ABOUT INCREASING TRAFFIC, THEY'RE WORRIED ABOUT RURAL ROADS OR NON-HIGHWAY ROADS BEING CLOGGED UP BY HUNDREDS OF TRUCKS 24 HOURS A DAY.
AND THEY'RE WORRIED ABOUT THE DEVELOPMENT OF SO-CALLED GREENFIELD SITES.
PLACES THAT HAVEN'T BEEN PREVIOUSLY DEVELOPED.
AND WHICH -- WHERE PEOPLE ARE CONCERNED THAT THESE SITES ARE BEING ENCROACHED ON AS PARTS OF NEW JERSEY'S DWINDLING OPEN SPACE.
>> JOHN, WHERE IS THE BALANCE ON THE OTHER SIDE YOU HAVE COMMUNITIES, MANY OF WHICH ARE DESPERATE FOR TAX REVENUES IN A SLUGGISH ECONOMY, AND ARE SEEKING TO BRING THAT TO THEIR TOWN.
SO HOW DOES THE BALANCE PLAY OUT, DO YOU THINK, HERE?
>> WELL, I THINK ONE WAY IN WHICH THERE IS A PROPOSAL IN THE LEGISLATURE TO BALANCE THESE TWO THINGS BY REQUIRING A COMMUNITY THAT SERVICE A WAREHOUSE APPLICATION TO OBTAIN THE APPROVAL OF NEIGHBORING TOWNSHIPS.
AND MAYBE THOSE WERE TOWNSHIPS THAT WOULDN'T IN THEMSELVES APPROVE A WAREHOUSE APPLICATION.
BUT THEY -- BUT THERE'S -- THIS IS AN ATTEMPT TO OBTAIN THE BUY-IN OF NOT ONLY A PARTICULAR TOWNSHIP BUT A GROUP OF TOWNSHIPS SO THERE WOULD BE SOME, LET'S SAY, REGIONAL APPROVAL OF A WAREHOUSE APPLICATION.
>> AND WHAT ABOUT THIS PARTICULAR LAWSUIT, WHAT ARE THE CHANCES OF IT ADVANCING?
>> WELL, I THINK THE JURY IS OUT ON THAT.
A COUPLE OF INDEPENDENT EXPERTS I'VE SPOKEN TO, ONE OF THEM WAS FAIRLY OPTIMISTIC, HE THOUGHT THAT THE PLAINTIFFS IN THIS CASE HAVE A PRETTY GOOD SHOT OF SUCCEEDING, AND THAT'S ON THE BASIS THAT IN HIS VIEW THE COURTS TEND TO BE PRETTY SYMPATHETIC TO ESTABLISHED ZONING RULES AND AS THE -- AS THE -- AS THE -- THE SUIT SAYS, THE TOWNSHIP THAT THE -- THE TOWNSHIP ALLOWED THE APPLICATION TO PROCEED EVEN THOUGH IT CONTRAVENED A COUPLE OF ZONING REGULATIONS.
>> JOHN, THANK YOU FOR YOUR TIME.
>> YOU'RE WELCOME.
>>> SOUTH JERSEY'S ECONOMY TOOK A BEATING DURING THE PANDEMIC ACCORDING TO A NEW REPORT FROM STOCKTON UNIVERSITY.
THE ATLANTIC CITY METRO AREA HAD THE THIRD LARGEST DEPLOYMENT DECLINE IN THE NATION LAST YEAR.
A DROP OF NEARLY 16% AS COVID UPENDED THE TOURISM INDUSTRY BUT THERE'S OPTIMISM NOW AS THE CASINOS ARE OPEN AND THEY'RE REPORTING HIGHER PROFITS.
AND LOTS OF EXCITEMENT AROUND A NEW INDUSTRY FOR ATLANTIC CITY AND THAT'S eSPORTS AT A RECENT CONFERENCE, THE DIRECTOR OF NEW JERSEY'S DIVISION OF GAMING ENFORCEMENT SAID NEW JERSEY IS AHEAD OF OTHER STATES AND COULD BE A LEADER IN COMPETITIVE VIDEO GAMING.
>> WE HAVE A COMMITMENT FROM THE TOP.
NO DOUBT THAT THE ADMINISTRATION FULLY SEES THE OPPORTUNITIES HERE, HAS PUT THEIR WORKFORCE TO PLAY TO MAKE THIS AN INITIATIVE FOR THE STATE OF NEW JERSEY.
>> ELSEWHERE THE BIDEN ADMINISTRATION IS CANCELING $500 MILLION IN FEDERAL STUDENT LOAN DEBT FOR THOUSANDS OF STUDENTS WHO ATTENDED ITT TECH.
THAT WAS A FOR-PROFIT COLLEGE CHAIN THAT MADE EXAGGERATED CLAIMS ABOUT THE ABILITY OF ITS GRADUATES TO FIND JOBS ONCE THEY LEFT THE SCHOOL.
THE SCHOOL SHUT ITS DOORS FOR GOOD A FEW YEARS AGO.
THIS ACTION IS THE LATEST EFFORT TO CLEAR A BACKLOG OF CLAIMS IN THE BORROWER DEFENSE PROGRAM WHICH PROVIDES LOAN FORGIVENESS TO STUDENTS DEFRAUDED BY THEIR COLLEGES.
BUT SOME ADVOCATES ARE CALLING FOR A BROADER PLAN FOR LOAN FORGIVENESS AS THE TOTAL AMOUNT OF STUDENT LOAN DEBT IN THIS COUNTRY SOARS.
WE'RE PUTTING STUDENT LOAN DEBT IN FOCUS THIS WEEK.
AS OF MARCH 31st, THE OUTSTANDING FEDERAL STUDENT LOAN PORTFOLIO IS $1.59 TRILLION.
AND PAYING ALL OF THAT BACK IS A BIG PROBLEM.
RIGHT NOW BORROWERS WERE ABLE TO SUSPEND PAYMENTS ON THEIR FEDERAL STUDENT LOANS THANKS TO EMERGENCY RELIEF MEASURES THE GOVERNMENT PUT IN PLACE IN RESPONSE TO COVID-19.
BUT THOSE MEASURES ARE SCHEDULED TO BE LIFTED AT THE END OF SEPTEMBER.
ABOUT 1.2 MILLION NEW JERSEY RESIDENTS, THAT'S ONE IN SIX ADULTS, HAVE FEDERAL STUDENT LOANS OUTSTANDING, OWING A COLLECTIVE $40.5 BILLION.
AS OF NOW, MORE THAN 1 MILLION PEOPLE HAVE SIGNED A PETITION, ASKING THE FEDERAL GOVERNMENT TO CANCEL THEIR STUDENT DEBT.
WE TALKED TO THE MAN BEHIND THAT MOVEMENT, ALLEN COLLINS IS THE FOUNDER OF STUDENT LOAN JUSTICE.
ALLEN, YOU HAVE BEEN RESPONSIBLE FOR A REALLY AMAZING PETITION DRIVE ABOUT STUDENT LOAN DEBT.
TELL ME HOW YOU GOT THIS WHOLE THING STARTED.
>> WELL, INTERESTINGLY, NOVEMBER OF 2019, PRESIDENT TRUMP ACTUALLY USED EXECUTIVE AUTHORITY TO CANCEL THE STUDENT LOANS OF DISABLED VETERANS.
AND SUBSEQUENT TO THAT I STARTED LOOKING AT THE LAW AND OTHERS AS WELL, AND IT TURNS OUT THAT THE HIGHER EDUCATION ACT GIVES THE PRESIDENT AND THE SECRETARY OF EDUCATION FULL AUTHORITY, VERY BROAD SWEEPING POWERS, TO WAVE COMPROMISED, RELEASE THE FEDERAL INTEREST IN FEDERALLY OWNED STUDENT LOANS.
SO AT THIS POINT, WHERE WE'RE THROWING TRILLIONS OF DOLLARS OUT INTO THE COUNTRY IN STIMULUS, ALL OF WHICH ADDS TO THE NATIONAL DEBT, IT TURNS OUT THE PRESIDENT AND SECRETARY CAN CANCEL FEDERALLY OWNED STUDENT DEBT WITHOUT NEEDING A DIME FROM THE TREASURY OR ADDING A PENNY TO THE NATIONAL DEBT.
>> HOW DID YOU GET THE WORD OUT?
>> JUST BARE BONES, GRASS ROOTS NETWORKING.
WE PUT IT OUT THERE AND APPARENTLY IT HIT A NERVE AND WITHIN A MONTH OR SO WE WERE UP TO WELL OVER A COUPLE HUNDRED THOUSAND SENATORS AND IT SNOWBALLED FROM THERE.
>> WHAT HAPPENED IN SEPTEMBER OF THAT YEAR?
>> WE WERE THRILLED THAT SENATORS WARREN AND SCHUMER EMBRACED THE CONCEPT AND ISSUED A SENATE PROPOSAL CALLING ON THEN PRESIDENT TRUMP TO, INDEED, CANCEL FEDERALLY OWNED STUDENT LOANS BY EXECUTIVE ORDER.
WE'RE REALLY GLAD TO SEE IT AND REALLY PUT THIS ISSUE ON THE MAP.
>> SO IT'S STILL ON THE MAP, BUT IT'S JUST KIND OF SITTING THERE.
WHAT DO YOU THINK IT'S GOING TO TAKE FOR ACTION?
>> WELL, QUITE FRANKLY, I THINK THAT WE NEED TO GET SOME REPUBLICANS TO COME AROUND.
YOU KNOW, THIS SHOULD NOT BE A PARTISAN ISSUE.
SOUTHERN STATES ARE BEING ABSOLUTELY RAVAGED BY STUDENT LOAN DEBT WE WOULD HOPE THE GOVERNORS AND SENATORS OF THOSE STATES WOULD TAKE A FRESH LOOK AT THE PROBLEM.
>> WHAT KIND OF INTEREST HAVE YOU SEEN IN NEW JERSEY WHERE WE ARE?
>> WE'VE HAD TENS OF THOUSANDS OF PEOPLE FROM NEW JERSEY SIGN ONTO OUR PETITION.
SENATOR MENENDEZ HAS BEEN A LONG-TIME CHAMPION OF STUDENT LOAN BORROWERS GOING BACK TO 2007 AND EVEN BEFORE.
SO, YOU KNOW, WE'RE HOPING THAT HE CAN USE HIS INFLUENCE AND REACH OUT TO THE OTHER SIDE OF THE AISLE AND SORT OF DE-PARTISANIZE THIS ISSUE.
>> I'M TALKING TO YOU IN MID JUNE.
HOW MANY SIGNATURES DO YOU HAVE RIGHT NOW?
>> WE HAVE A MILLION AND 42,000 SIGNATURES, BUT YOU KNOW OF THE 45.4 MILLION FEDERAL STUDENT LOAN BORROWERS IN THE COUNTRY, EVEN BEFORE THE PANDEMIC, ABOUT 80% OF THEM WERE IN DEEP TROUBLE.
EITHER UNABLE TO MAKE PAYMENTS OR THEY WERE PAYING BUT THEIR LOAN BALANCES WERE GOING UP.
SO THERE'S NO REASON WHY WE CAN'T HAVE 10 OR 15 MILLION SIGNATURES ON THIS PETITION.
THAT'S WHAT WE'RE HOPING FOR.
>> ALLEN, IT'S BEEN GREAT TALKING TO YOU.
THANK YOU SO MUCH AND GOOD LUCK.
>> THANK YOU VERY MUCH.
I APPRECIATE YOUR TIME.
>>> IT'S NOT JUST BORROWERS ARGUING FOR DEBT RELIEF.
THE NEW JERSEY EDUCATION ASSOCIATION SAID IT IS TIME TO CANCEL THE DEBT OF MILLIONS OF AMERICANS.
THE NJEA'S VICE PRESIDENT AND PRESIDENT ELECT SHARED THE REASONS WHY.
SEAN, THE NJEA HAS COME OUT IN SUPPORT OF THE IDEA OF CANCELING STUDENT DEBT.
WHAT'S BEHIND THE RATIONAL FOR THAT?
>> I THINK YOU HEARD A LOT OF INDIVIDUALS CALL FOR THAT, MANY HAVE REACHED OUT TO PRESIDENT BIDEN, WE KNOW HE HAS QUITE A BIT OF AUTHORITY TO DO THAT UNILATERALLY BECAUSE WE KNOW WHAT KIND OF IMPACT IT WILL HAVE.
WE HAVE SEEN OVER A GREAT NUMBER OF YEARS BUT IT'S TALKED ABOUT BY OUR GOVERNORERS AND OTHERS, THE IMPACT STUDENT DEBT HAS ON PEOPLE TRYING TO ENTER THE WORKFORCE, SPECIFICALLY FOR US, IT'S A BURDEN.
A LOT OF TIME INDIVIDUALS HAVE TO HAVE SIGNIFICANT AMOUNT OF SCHOOLING THEY COME OUT WITH SIGNIFICANT DEBT AND WE'RE ASKING THEM TO TAKE LOWER PAYING JOBS THAN THEY MIGHT IN THE PUBLIC SECTOR IF WE DON'T HAVE SOME TYPE OF DEBT FORGIVENESS, IF WE DON'T WORK THROUGH AND FOLLOW UP WITH SOME OF THE FORGIVENESS PROGRAMS THAT WE HAD IN PLACE, IT'S A DEBT THAT OUR NEWER MEMBERS COMING IN, NEWER EDUCATORS ARE GOING TO CARRY WITH THEM FOR THEIR WHOLE CAREERS.
IT'S A REAL CHALLENGE AND IMPACTING HOW MANY PEOPLE ARE COMING INTO THE PROFESSION AND THAT'S A PROBLEM FOR US.
>> PUBLIC SERVICE DEBT FORGIVENESS HAS NOT WORKED AT ALL.
>> NOT AT ALL.
IT WAS A PROGRAM YOU PARTICIPATE FOR TEN YEARS, YOU WORK IN YOUR PROFESSION, YOU DO WHAT YOU'RE SUPPOSED TO DO UNDER THE PROGRAM AND IT'S SUPPOSED TO ALLOW YOU TO HAVE THAT DEBT FORGIVEN.
IN 2017 WE DO THE MATH, OUR FIRST EDUCATORS -- FIRST PUBLIC WORKERS, PUBLIC SERVICE WORKERS BECAME ELIGIBLE BUT WHAT WE SAW UNDER THE TRUMP ADMINISTRATION WAS A COMPLETE FAILURE IN TERMS OF OVERSIGHT OF THAT PROGRAM.
EVERYBODY BEING DENIED IN TERMS OF THEIR APPLICATIONS FOR FORGIVENESS AND THEREFORE THE PROGRAM NOT WORKING AS IT WAS INTENDED.
AGAIN, LEAVING EVERYBODY IN DEBT AS THEY WERE BEFORE.
SO, YOU KNOW, WE'VE HAD PROGRAMS LIKE THAT THAT HAVE BEEN PUT IN PLACE THAT ARE SUPPOSED TO HELP WITH THIS PROBLEM, AND WHEN THEY COME DUE IN TERMS OF THE FORGIVENESS, IT DOESN'T HAPPEN.
THAT'S A BIG PROBLEM.
>> ARE YOU SURPRISED, ACTUALLY, THAT WE HAVEN'T SEEN ACTION FROM PRESIDENT BIDEN ON THIS?
BECAUSE IT'S BEEN TALKED ABOUT FOR MONTHS HERE.
>> I THINK THE PRESSURE WILL CONTINUE TO MOUNT.
RIGHT NOW THERE'S A LOT OF FOCUS, RIGHTFULLY SO, ON PANDEMIC-RELATED ISSUES, ON GETTING THE ECONOMY GOING.
BUT THIS IS A BIG PART OF THAT ECONOMIC DISCUSSION WHEN WE TALK ABOUT THAT AND I THINK IT'S GOING TO START TO COME A LITTLE MORE FRONT AND CENTER FOR ALL OF US AS WE MOVE FORWARD.
>> SEAN, WHAT HAPPENS HERE IN NEW JERSEY IF YOU CAN'T GET YOUNG COLLEGE GRADS INTO THE TEACHING PROFESSION IN THIS STATE?
>> SHORT ANSWER, BIG PROBLEM.
BIG PROBLEM FOR YOUR STUDENTS, FOR ALL OF US, IF WE CAN'T KEEP ATTRACTING, WE'RE SEEING THE NUMBERS IN TERMS OF PEOPLE IN COLLEGE PREPARATION PROGRAMS DECLINE.
IF WE CAN'T GET PEOPLE COMING INTO THE PROFESSION, WE CAN'T GET CLASSROOMS FILLED.
CLASSROOM SIZES ARE TOO BIG.
PEOPLE AREN'T IN THE DIFFERENT AREAS FOR EDUCATION TO BE ABLE TO ASSIST OUR STUDENTS.
WE DON'T HAVE, YOU KNOW, JUST ENOUGH PEOPLE TO SERVE ALL OF OUR SCHOOL DISTRICTS THROUGHOUT THE STATE.
THAT'S GOING TO BE A BIG PROBLEM FOR US.
IT'S A STRAIN ON EVERYBODY CURRENTLY IN THE SYSTEM.
YOU HAVE TO DO MORE AND MORE AND MORE TRYING TO COVER A COLLEAGUE THAT DOESN'T EXIST ANYMORE OR CAN'T FILL A POSITION.
IT'S ALSO GOING TO BE REALLY BAD FOR OUR STUDENTS AND PARENTS WHO ARE WATCHING THEIR CHILDREN STRUGGLE IN SOMETHING BECAUSE THERE'S NO TEACHER FOR HOW LONG A PERIOD OF TIME.
>> SEAN, THANK YOU FOR YOUR TIME.
>> THANKS SO MUCH FOR HAVING ME, I APPRECIATE IT.
>>> MOUNTING STUDENT LOAN DEBT IS ON THE MINDS OF OTHERS IN THE EDUCATION FIELD.
WE CHECKED IN WITH DR. HARVEY KESSELMAN TO FIND OUT WHAT THE SCHOOL IS DOING TO HELP ITS STUDENTS AVOID TAKING ON TOO MUCH DEBT.
WE HAVE SPOKEN ABOUT STUDENT DEBT BEFORE.
AS THIS YEAR DRAWS TO A CLOSE, WE SEE THE AMOUNT OF DEBT JUST BALLOONING ONCE AGAIN.
HOW ARE YOUR THOUGHTS, PERHAPS, DIFFERENT THAN WHEN WE SPOKE LAST?
>> LOOK, THE STUDENT LOAN DEBT IN THE UNITED STATES HAS GROWN TO AN EBB TENANT AMOUNT IT'S THE EFFECT OF SHIFTS IN POLICIES AND PRACTICES SINCE THE MID 1980s WHEN WE MOVED FROM GRANT-BASED STUDENT AID TO LOAN-BASED STUDENT AID.
AND OVER TIME, AT THE SAME TIME THAT WAS HAPPENING, THERE WERE DISINCENTIVES IN FUNDING PUBLIC HIGHER EDUCATION.
LESSENING COMING INTO PUBLIC HIGHER EDUCATION.
STUDENTS BECAME MORE RELIANT ON LOANS AND TUITIONS WENT UP AS A RESULT OF LESS FUNDING INTO PUBLIC HIGHER EDUCATION AND THAT WAS UNFORTUNATELY A PERFECT STORM.
I KEEP THINKING ABOUT THIS PILE OF FEDERAL MONEY THAT NEW JERSEY HAD THANKS TO THE COVID RELIEF FUNDS, AND OTHER STATES HAVE AS WELL.
WHAT ABOUT USING SOME OF THIS MONEY TO EITHER SUPPORT HIGHER EDUCATION MORE STRONGLY IN TERMS OF FUNDING OR ACTUALLY LOOKING AT SOME DEBT RELIEF?
>> WE KNOW THAT OUR STUDENT LOAN DEBT IN RECENT YEARS HAS GONE DOWN.
THERE'S BEEN A NUMBER OF REASONS FOR THAT.
THEY'RE VERY INTENTIONAL REASONS AND WE MIGHT BE ABLE TO TALK ABOUT THAT.
A LOT OF MONEY IS RESTRICTED COMING FROM THE FEDERAL GOVERNMENT TO THE STATE.
IT HAS TO BE DIRECTLY RELATED TO COVID-19 COSTS ASSOCIATED WITH IT.
AND, YOU KNOW, LISTEN, I AM CERTAIN, PARTICULARLY WITH THIS GOVERNOR AND THIS PRESIDENT, QUITE FRANKLY, IF THERE WERE A WAY TO REDUCE LOAN ENCUMBRANCES BY UTILIZING THESE FUNDS THEY WOULD ENCOURAGE US TO DO SO AND I THINK MOST OF US WOULD ABSOLUTELY EMBRACE THAT CONCEPT.
>> YOU MENTIONED LOANS WENT DOWN, WHY IS THAT?
>> WHAT I'M SAYING LOAN INDEBTEDNESS.
OUR INSTITUTION, I DON'T THINK WE'RE UNIQUE, ONE OF THE THINGS WE DID, WHEN WE REALIZED -- WE WANTED -- PART OF IT IS WE WANTED TO REDUCE THE TIME IT TAKES TO GRADUATE.
YOU REMEMBER, WHEN -- WHEN I WENT TO SCHOOL THE STANDARD WAS FOUR YEARS THEN IT BECAME FIVE YEARS AND THEN IT'S SIX YEARS.
WE WANTED TO START MOVING IT BACK TO FOUR YEARS.
SO WHAT WE DID VERY INTENTIONALLY WE SAID STUDENTS CAN TAKE THREE, FOUR OR FIVE CREDIT COURSES.
THREE FOUR OR FIVE COURSES FOR THE SAME PRICE AS THREE.
WE ENCOURAGED STUDENTS TO TAKE STUDENTS TO GET AHEAD SO THEY COULD GRADUATE SOONER.
THAT WAS ONE THING.
I THINK ANOTHER THING THAT I THINK MOST OF US DID WAS REALLY TRY TO PROVIDE MORE FINANCIAL LITERACY KIND OF WORKSHOPS AND THE LIKE FOR STUDENTS TO BORROW WHAT YOU NEED TO COVER YOUR EDUCATIONAL COST.
I ALSO THINK ONE OF THE THINGS WE'RE ALL DOING.
MY SCHOOL JUST SIGNED A VERY UNIQUE PARTNERSHIP AGREEMENT WITH THE OCEAN CITY SCHOOL DISTRICT, WHERE STUDENTS CAN TAKE A FULL YEAR OF STOCKTON COURSES AT THE HIGH SCHOOL.
GRADUATE THE HIGH SCHOOL IN THREE YEARS AND THEN COME TO STOCKTON A SOPHOMORE.
SO YOU'VE TAKEN EIGHT YEARS OF EDUCATION AND CONDENSED IT TO SIX.
>> GOOD TO CATCH UP WITH YOU AGAIN ON THIS VERY, VERY DIFFICULT SUBJECT.
THANK YOU SO MUCH FOR YOUR TIME.
>> THANK YOU FOR BRINGING THE SUBJECT UP BECAUSE IT'S ONE THAT SOCIETY HAS TO DEAL WITH.
>> THANK YOU.
>> THANK YOU.
>>> AND THAT WRAPS UP OUR SHOW FOR THIS WEEK.
THANK YOU SO MUCH FOR WATCHING.
I'M RHONDA SCHAFFLER.
WE'LL SEE YOU NEXT WEEK.
>>> FUNDING FOR "NJ BUSINESS BEAT" PROVIDED BY, NEW JERSEY CHAMBER OF COMMERCE.
WORKING TO KEEP NEW JERSEY IN BUSINESS.
ONLINE AT NJCHAMBER.COM.
NJBIA HAS BEEN THE VOICE OF BUSINESS FOR MORE THAN 110 YEARS AND IS BUILT TO SERVE OUR MEMBERS IN TODAY'S NEW NORMAL.
AND NJCU SCHOOL OF BUSINESS, A GAME CHANGING FORCE OFFERING PROGRAMS LIKE FINANCIAL TECHNOLOGY, WHERE BUSINESS ANALYTICS AND DATA SCIENCE.
WE'RE STEPS AWAY FROM THE EXCHANGE PLACE PATH TRAIN IN JERSEY CITY AND MINUTES FROM WALL STREET.
LEARN MORE AT NJCU.EDU/GAMECHANGER.

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