The Lifeboat Is a Lie: Frontier Capitalism and the Student Debt Sinkhole

"What we have been living for three decades is frontier capitalism, with the frontier constantly shifting location from crisis to crisis, moving on as soon as the law catches up." — Naomi Klein, The Shock Doctrine: The Rise of Disaster Capitalism

There's a particular kind of cruelty in being handed a lifeline only to realize it's rigged to drag you under. Millions of student debtors were told the SAVE plan would be relief—a rare light at the end of the systemic tunnel that has kept borrowers trapped in endless repayments. Now, as servicers push borrowers to switch plans, the consequences are becoming clear: half of enrollees will suddenly find their payments going through the roof.

A recent survey of 1,670 SAVE enrollees found that 50% would see their monthly payments increase by an average of over $500 if they complied! That's five-hundred dollars, per month.

In a country where nearly 40% of adults can't cover a $400 emergency, this is going to push millions into complete financial crisis. We're talking missing rent, skipping medications, unable to meet even the most basic needs. The repayment system keeps debtors in a state of manufactured instability, where each new "solution" is just another goddamn weight around their ankles.

They want you to suffer

As Klein describes, frontier capitalism doesn't solve crises—that's not its purpose. In fact, it exploits crises. It thrives on them. It thrives in the chaos it creates and uses that to stay ahead of regulation, while shifting burdens to those least able to bear them.

The student debt crisis fits this pattern to a T. The SAVE plan was a temporary measure, a bandage on a gaping wound. Now, with even that meager plan failing, ordinary people like you and me are being forced into costly repayment schemes. Meanwhile, our elected officials sit around with their thumbs stuck where the sun don't shine.

But the fight is happening. There is a real battle taking place.

Hundreds of thousands are mobilizing to take this fight to the political palaces of the elite. Democrat or Republican doesn't matter here; what matters is that scumbags on both sides of the proverbial aisle want to screw you in any way that they can. And we're not going to let them.

One week of action: Kick some ass

From August 10–14, the Debt Collective and the Student Debt Crisis Center are organizing a Week of Action demanding a payment pause. The effort starts in New York, where debtors will meet with Senate Minority Leader Chuck Schumer and other lawmakers. This involves both advocacy and organizing—real folk sharing their experiences and making their cases directly.

And also, on August 13, a National Call will update participants on Havens v. Department of Education, a case that could force reinstatement of REPAYE and influence future litigation.

Legal efforts alone won’t break the cycle, but organized, disruptive action can.

How to fight back

• Join the New York Day of Action (August 10) to call for a payment pause
• Attend the Media & Op-Ed Training (August 12) to prepare your messaging
• Participate in the National Call (August 13) for updates on the Havens case
• Sign up for the HealthWatch Interest Form to oppose Medicaid cuts
• Access the Tenant Power Toolkit if dealing with eviction or rental disputes

Looking toward a better world

Klein's analysis shows that crises create opportunities—for consolidation of power by some, sure—but also for organization and resistance by others.

The Debt Collective represents debtors across the United States, and its strength depends on member participation. Whether you're a student debtor, renter, patient, or someone who believes alternatives are possible, participation makes a difference.

Current approaches to debt aren't sustainable... but alternatives exist, and all we need is enough people to get out there and light some goddamn fires.

I’m Odin Halvorson, a librarian, life coach, and fiction author. If you like my work and want to support what we do here at Unenlightened Generalists, please consider becoming a paid subscriber to our newsletter for as little as $2.50 a month!

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