Mark Cuban Tackles America's Student Loan Bubble, Then Roots for It to Burst

Mark_Cuban_sweating_Merten.jpg
Mark Cuban's really sweating the education crisis.
In addition to sports team ownership and a sideline in media impresario-ness, Mark Cuban is quite the blogger: dishing out advice to the Occupy movement, fulminating about patent law, apologizing for some casual homophobia. And a few days ago, he aired his views on the small matter of student loan debt, which, he says, is quickly taking our country down in flames.

Cuban writes that student loan debt dwarfs credit card and auto loans, and that the average amount of loan debt is growing every year. He's absolutely right. A recent NPR story broke it down with data from the Federal Reserve Bank of New York: Americans owe $867 billion in student debt, compared with $734 billion in auto loans and $704 billion in credit card debt.

What Cuban doesn't mention in his piece, though, is that this huge amount of loan debt isn't only due to individual students borrowing more money every year. NPR found that national loan debt is also growing so quickly because more students are going to college than ever before, and they need to borrow money to get there.

Still, Cuban has a good overall point here, one that an ever-increasing number of people are making: college students are having to take on massive amounts of debt, which is forked over very willingly by both private and public lendors. (And as a recent post on the Atlantic's website pointed out, some students, especially the ones who get seriously into debt, may not fully understand the agreements they're signing.)

Plenty of those people will simply never be able to pay back the money they owe. Some have simply stopped trying. As an extremely depressing New York Press cover story last year pointed out, 35 percent of student loans are delinquent, the lowest repayment rate the Department of Education has ever seen. (Disclosure: The author of that piece is a friend of mine, from back when we were busy incurring massive debt together during journalism school.)

Cuban argues, pretty reasonably, that having this many people this far underwater financially for essentially their entire working lives is very bad for those people, for the economy, and for the country as a whole.

"We freak out about the Trillions of dollars in debt our country faces. What about the TRILLION DOLLARS plus in debt college kids are facing?" he writes. ""The crush of college debt has taken an entire generation of graduates, current and future out of the economy. Which is exactly why the economy hasn't grown and won't grow beyond microscopic growth rates we have seen so far."

The economy would do a lot better if we forgave some of this student debt, for sure -- soon enough, student debt will also become a drag on the housing market, as Bloomberg points out, another drag it really doesn't need.

But then Cuban loses me with his argument that hey, aren't un-accredited schools a reasonable alternative for college students, if they're offering the same education for less money?

Prices for traditional higher education will skyrocket so high over the next several years that potential students will start to make their way to non accredited institutions.

While colleges and universities are building new buildings for the english , social sciences and business schools, new high end, un-accredited , BRANDED schools are popping up that will offer better educations for far, far less and create better job opportunities....The number of people being prepared for the work world in these educational environments is exploding.

Cuban seems to be referring mainly to Khan Academy, a stylish series of online teaching videos from a tech entrepreneur named Salman Khan, which Wired wrote about at length last year. And sure, online classrooms are a way for some students to learn some skills, but they're hardly a wholesale replacement for a B.A., and even less so for other advanced degrees. For some things -- like, say, a degree in counseling or teaching, or one of those licenses that lets you cut people open -- you really, really need to attend an accredited school.

Cuban also argues that the education system is heading for a "meltdown," which is pretty clear to everybody. But he says it's one that "can't happen fast enough."

"Like the real estate industry, prices will rise until the market revolts," he writes. "Then it will be too late. Students will stop taking out the loans traditional Universities expect them to. And when they do tuition will come down. And when prices come down Universities will have to cut costs beyond what they are able to. They will have so many legacy costs, from tenured professors to construction projects to research they will be saddled with legacy costs and debt in much the same way the newspaper industry was." The whole thing, he says, will lead to a much-needed "destabilization" of the university system.

Maybe. But the market doesn't show any signs of "revolting" yet. Schools keep charging sky-high tuitions. Public and private lenders both continue to loan huge amounts of money to students, then turn around and attempt to recoup that money using companies who are very happy to employ strong-arm, borderline illegal tactics. All the while, states and the federal government alike keep cutting education funding. Nothing Cuban is proposing will actually fix the way we're approaching education in this country (and really? Is it Mark Cuban's job to fix education? Hasn't he saved enough beloved institutions this year?)

We're in an education crisis, to be sure. But unlike Cuban, we're not at all sure the final "meltdown" will be a good thing.



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54 comments
unsecured business financing
unsecured business financing

When i typically recognize, although I'm sure learners, seeing that student-loan people, usually are little by little growing to be far more prepared around the soundness connected with options to help incur personal debt. On account of information sites, concept has become escaping . of which agreeing to tons connected with cash for just a law-school knowledge most likely are not some sort of prudent strategy, due to the fact and so several law-school graduates uncover tasks of which permit them to help easily amortize of which personal debt. In of which current market, some sort of revolt is usually going down... learners usually are suing educational institutions, citing misrepresentations in relation to the marketability when university, in addition to educational institutions usually are eventually currently being presented to help are the reason for this low cost practices that they have helpful to inflate the success-upon-graduation studies. Would you current market power providing just one subset on the knowledge marketplace on brand; but only if though others could abide by.

timeshare exit
timeshare exit

Being prepared includes researching the local availability of the car. That means finding out how many of that car a dealer has on the lot.

Rob Lew
Rob Lew

LET'S JUST FORGIVE ALL THE DEBT AND MAKE IT A PRESENT TO THE KIDS FOR XMA.

KristenFranks
KristenFranks

Join the ‘student loan debt’ advocates & champions inthe fight towards changing American perceptions; there is a movement to reachand change societal norms and heuristics in regards of how people think of ‘student loan debt’and the serious repercussions in aggregate when the next financial crisis hits.When the student loan bubble bursts, and it will; the devastation will be longreaching into all our financial institutions, and then society will finally understandthe foreboding economic condition and the actors who were involved in allowingthis student loan debt catastrophe to happen: the responsible persons for theStudent Loan Debacle, is majority of Congress & the Senate. And how did "WE the PEOPLE" and our wishes become a special interest group that those in Washington can negate. 

Robert Applebaum http://forgivestudentloandebt....OR https://www.facebook.com/group...

Please support this petition: it is 945,687 signatures strong:

Student Loan Forgiveness Act of 2012 also supported by Hansen Clarke

http://signon.org/sign/support...

Denise Smith https://www.facebook.com/group...OR http://www.agingwithstudentdeb... who is feverishly working for those older students who are over 50 & also thoseare who are under 50 that are saddled with student loan debt.

Occupy Colleges - Natalie Abrams https://www.facebook.com/Occup...

OR http://occupystudentdebt.com/

Student Loan Justice by Alan Coolidge - Fighting for Bankruptcy Protections   http://www.studentloanjustice....

for more info: http://studentloandebacle.blog...

Guest
Guest

I used to think that starting off at a community college was the way to go (I took my first college course at Amarillo College, though I was still in high school at the time. I was grandfathering out of the TASP). The core courses are state mandated and are (usually) easily transferable. And not only does it tend to cost significantly less, you're also more likely to end up in a smaller class and with programs and whatnot at the campus to help struggling students.

But then my mother-in-law decided to return to school and enrolled an area community college to take courses in her spare time. She went for two years and despite making straight As the entire time, she didn't earn a single college credit because they stuck her in an endless string of remedial classes, many in the same subject (she had four separate remedial math courses). She got discouraged both by being in classes that she felt were too easy and by the fact that she was expending a lot of effort to do nothing more than spin her wheels, but the college wouldn't put her in regular classes. So she quit.

She didn't take out any loans to go, but she did end up wasting her own time, effort and money.

And here's an article about this very thing from earlier this year: http://www.texastrustees.org/n...

Blame Shifting
Blame Shifting

Why is no one placing any blame on students/graduates?  Taking out loans to go to an expensive private school for retail sciences or psychology or communications degrees is a poor financial decision.  Further, how many people deep in student debt have, in the past 6 months: (1) bought a new (unneeded) car, or (2) an ipad (3) a house or  (4) have deprived themselves of anything they have ever wanted?  Honestly.   When are people supposed to take responsibility for their poor decisions?  Yes, colleges are wrong in being so exorbitantly expensive, and yes, loan institutions are completely wrong for taking advantage of students.  But I have no sympathy for those who get something more expensive then they should have simply because they believe they are entitled to it.  Same issue with home mortgages.  If many had stuck to what they could reasonably afford with their income, we'd have had fewer problems. 

But wait, blame Republicans.

Oak Cliff Townie
Oak Cliff Townie

How many top to bottom Separate University Systems do we have operating under the Higher Education Banner in The State of Texas for the State of Texas run By the State of Texas ?

Doing the same thing just under a different LOGO ?

Mike
Mike

The correction happens when students stop picking colleges like six year olds and base their decisions on return on investment. Yes, you should go to college. Plenty of low cost colleges fit the bill. Go to a state school, particularly a local one to save on room and board, max your credits, and just get the degree. Then get on with the rest of your life. Do not waste any more time in college than absolutely necessary. Forget the malarkey about it being the best time of your life. The best time of your life should always be the next day of your life. Grind through at minimal cost and then those best times are ahead, not weighted down with stupid decisions on debt.

The bankruptcy rules are there to protect taxpayers and were part of the package that had the Feds take over student loans. We cannot have 21 year olds making dumb decisions in college and then making a pit stop at bankruptcy the day after graduation to shed those bad decisions. No evil bankers here. You behind belongs to the US taxpayer and it will stay in hock until you die or you pay.

How long will it take before students get the message? For over a decade law schools have been cranking out unemployable graduates and new students are just starting to get the message. Hopefully regular students will wise up soon.

Hannibal Lecter
Hannibal Lecter

What happened to the concept of working your way through school? 

I worked my way through SMU -- not known for being a cheap school. It took five years, but mainly due to a change in major halfway through my fourth year. Never received a penny from my parents -- I was on my own. And I graduated with less student loans outstanding than I charged last month on my Mastercard (which I pay off in full every month).

This isn't intended as any kind of bragging, but rather to point out that if I can do that at SMU why can't today's students work their way through the UTAs and UTDs of this world? They are far less expensive (I recall one year at SMU where the amount tuition increased by was more than a full year's tuition at UTA). I rather doubt kids are spending more time studying today. Perhaps the problem is a culture of college as a four-year vacation.

Anna, I also disagree with your statement "The economy would do a lot better if we forgave some of this student debt, for sure". This is a zero-sum game. "Forgiving" debt means taking it away from someone else, whether a private lender or the taxpayers. You may help the economy of a financially irresponsible student, but at a cost to someone else. 

Oak Cliff Townie
Oak Cliff Townie

How much would the  PRICE of tuition have gone up with out these LOANS to pick up the slack.I didn't say cost I said Price .

Seems to me as long as there is money to be borrowed the Price is just going to keep going up.

Stop the Loans and the Price will go down .Yes that's right stop the loans .

And these places with Pricey educations will adapt or dry up and float away,

ObserverFan
ObserverFan

Everything tells a student they must have a degree if they want to make more money. Also when you're 18, you want the college experience (it'll be just like in the movies!). The thought that you'll eventually have to pay back $120K for a bachelor's in psychology doesn't quite sink in until you're 6 months out of college with no good prospects for employment.

Juan Valdez
Juan Valdez

I wish someone would gather a group of smart professors and business people and formed (not a free) but an almost Free University, that would provide most courses online. Most business, computer science, math and liberal arts degrees can be done this way. No physical plant required would lover costs. Teacher to student ratio would be irrelevant.This would stop the education cost bubble.

MarkO
MarkO

Unfortunately, these loans are given to "students" for a variety of "schools". I have multiple clients (drug and alcohol counseling) that have secured loans to attend schools to learn a trade or get some kind of certificate (nurses aid, a/c heating, IT tech ect.) not a traditional education, who lack the basic skills to be successfull. Just like the housing loans that failed to consider the fact that these people did not have the resourses to repay the loan, these institutions could care less if their "students" have the basic skills needed to complete the required schooling. Once again the US government is handing out money to organizations willing to take it and run to the bank while not providing the services for which they were paid.

ScottsMerkin
ScottsMerkin

right, there were no signs of the housing market revolting either until.....well it revolted.  We see where that got us. 

scottindallas
scottindallas

your article failed to mention that Student debt is not discharged in Bankruptcy.  And, as I wrote in the Cuban article, the problem isn't the cost of tuition, it's the dearth of jobs.  Presumably, those who took out these loans would be happy to repay them if the promised job opportunities ever materialized.

Also, the non-accredited colleges are much of the problem.  Not near enough focus has gone into the fraud of the federal loan programs by the Phoenix Univ's of the world.  This is a good and important issue, and need much more light.

gpcomments
gpcomments

Retail degree's...what??  And so what make you think these loans are for expensive private schools.  It ain't cheap anywhere, other than living at home with Mom and Dad and attending community college for the first 2 year.  Keep in mind also that student today are not finding work and therefore taking out more debt to get post graduate degrees...and I don't think these would be classified as retail.  

Guest
Guest

The number of times I heard the phrase "write your own ticket" coming from professors and advisers during my undergraduate education is too large a number to comprehend.

They really oversold the career prospects of graduates from their programs.

And this wasn't at some University of Phoenix place where the recruiters would say virtually anything to get someone to enroll. This was at UT-Arlington (and after I'd already enrolled).

Very few, if any, of us actually ended up working in our chosen field after graduation. I wouldn't say the degrees we got were useless, but they certainly weren't the miracle documents that our professors and advisers frequently suggested.

DoubleOJoe
DoubleOJoe

The problem occurs when those students, like potential mortgage holders, are given misleading information by the providers of that information.  The mortgage bubble happened because the consumers were misled by real estate agents eager to earn commission, banks eager to turn a profit on interest payments, and fund managers eager to generate inflated returns on packaged deals. 

The reason people blame government (not just Republicans) for this is because regulations were relaxed to the point where this sort of market manipulation could happen.  There is such a thing as ethical capitalism, and it was not in any way practiced there.  The same thing is happening with student loans:  authority figures are giving students bad information, and then when the students get trapped, the authorities are throwing their hands up and backing away.

Andrew Gunter
Andrew Gunter

Indeed. Blame the republicans. Glad we can see eye to eye.

EDM
EDM

"... Go to a state school ..."

Not everyone goes to a private university. 

The average cost of a public university in Texas (TAMU, UT, U of H) is about $19,000 year.  Multiply that by four years and you are looking at $76,000 for a degree.

DCCC costs between $10,000 and $15,000 per year for in-district students and between $11,000 and $16,000 for out-of-district students.

By comparison, Rice University costs about $52,000 per year and SMU costs between $45,000 and $59,000 per year.

Anon
Anon

I agree at some level, but there needs to be some sort of cap for the amount of loans that will not be discharged in bankruptcy, such that lenders will actually consider ability to repay above a certain level without giving graduates a free pass if they try to claim that they have no income and therefore shouldn't have to pay back their debts. This should be put together with a risk sharing program in which universities can have tuition clawed back from defaulted borrowers. There are few markets where you don't have to worry about the creditworthiness of your customers when you accept an IOU from them.

Jedis54
Jedis54

Until UNT Dallas was created, there was not a public university within the City of Dallas.  You say go to school close to home to save on room and board, but consider the fact that what you want to major in may not be offered at any school close by.  Its all a catch 22.

Tim Covington
Tim Covington

This goes with my belief that potential college students should spend a couple of years in the real world earning a living before starting college. I know I would have done things completely differently if I had done so. 

Anon
Anon

This doesn't work in anything but the very near term. When tuition rises above the general rate of inflation for an extended period of time while wages do not, there is no way that the college-aged population can expect to work themselves through school. If too many students traded down to cheaper schools, the enrollment pressure on those schools would become too great for students to get the courses they need and for the school to provide resources to its students. The only available option to be able to offer an education to those students would be tuition increases to cover those costs. Then you're not the cheap institution that you used to be. 

Ed D.
Ed D.

UTD itself estimates the cost of tuition, fees, books, supplies, plus room and board for 2011-2012 for a Texas resident to be $21,842. Add on car insurance, gas, and the other basic expenses of living in Dallas and you'd better have one heck of a part-time job to net the $28K or so you'll need to get by.

Jon Daniel
Jon Daniel

I would say with some certainty that the kids at UTA/UTD work harder than the kids at SMU

ObserverFan
ObserverFan

 Bragger. Just kidding, that's an amazing accomplishment and you should be proud.

chasd00
chasd00

This is pretty much my thought too. I would add that the backing of the government has to go away too. The reason why student loans are so easy to get is because there's little to no risk for the financial institution lending them. Make student loans like any other unsecured debt and banks won't be so willing to hand any nieve student 100k.

The price of tuition will rise to whatever the market will bear and since financing of tuition is basically risk free there's no limit to the amount of financing you can get and therefore no limit to the price of tuition.

EDM
EDM

An interesting theory.  The other possible outcome is as enrollment drops, prices will rise even faster to support the existing university infrastructure.

Tuition is not the only cost of attending an institution of higher learning.  There are also fees, books, room, and board.  My wife and I both had student loans when we were in school and tuition was only $3 per semester hour.

Guest
Guest

Hard to say, though I did read somewhere recently that I wish I could remember so I could link to it that the amount the average student paid in tuition and fees began rising at a rate considerably higher than inflation many years before student debt started taking off.

Of course, back when tuition was regulated (in Texas), the public schools couldn't just raise tuition whenever they were faced with a need or desire to increase spending. Now a tuition increase is always potentially on the table.

C Spot Run
C Spot Run

Sorry Kahn academy won't do. Don't tell me that people actually learn from these videos because that is hardly the point.

You see, what's important is that the government kick in money to help pay for MY benefit and also (as the author so believes) the government should also forgive what I said I would pay but now cannot because of uncertain events.

Geese, how could you ever be so naive as to believe that what people actually learn has any value?

You sound dumber than John Doerr, who just plunked down a 16m investment in Coursera (www.Coursera.org).

That Mr. Doerr is one stupid individual if one is to judge by his track record (sarcasm).

Doerr knows what Cuban is saying. All you whining Dems want help when the opportunity lies with a changing landscape. The first wave of winners will be the certification organizations that can guarantee a certain level of excellence based upon mastery of certain materials, regardless of the method used to master those materials.

Once that level of excellence is appreciated by the Fortune 1000 then the brick and mortar institutions will dwindle to fill a more limited and legitimate market.

C Spot Run
C Spot Run

The cost of tuition is a big problem when someone else can get world class instruction at a lower cost due based upon efficiency improvements 100 times over a brick and mortar lecture. Like Cuban says, 'Old School's will be damaged by attempting to hold on to an outdated business model.

https://www.coursera.org/http://ocw.mit.edu/index.htmhttp://www.khanacademy.org/http://www.edxonline.org/

Businesses will soon realize that a legitimate certification program is more relevant than any accreditation from some official organization in identifying suitable job candidates.

Jon Daniel
Jon Daniel

And let's not forget that the republicans 

1) Drastically cut higher ed fundingso2) Tuition increasesso3) Student loans industry jumps in to make up the deficitso4) Student loan industry reaps huge profitsand5) For profit universities make huge profitsso6) companies have big money to contribute to republican candidates

so as usual, the middle class gets screwed. The 5%ers can afford to send their kids to schools without loans. The rest of the country can not.

The 95%ers who took out ill advised Home Equity loans were not just buying big screen TV's and vacations to Cancun. The number one use was college tuition for their kids.

And of course, the right thinks it's all about tenured professors not being "productive". So as usual, the republicans who are supposedly "pro-business" can't read a financial statement that shows what the perosnel costs are at these universities and colleges, vs. other stuff like...ahhmmm healthcare

Mickister
Mickister

Scott, I think you're confusing unaccredited schools with for-profit schools.  Those for-profit schools are accredited.  They pose a huge philosophical problem for both Republicans and Democrats so they are hard to stop.  If Republicans vote to kill for-profit schools, they have to concede that the free market has provided the wrong answer for education. If Democrats kill for-profit schools, they have to concede that student loans act as a perverse incentive in subsidizing waste in the education sector.

I think another major problem is inexpensive community colleges are not being funded and utilized properly.  There are a lot of people getting bachelor's degrees and master's degrees that really need to be getting an associate's degree and learning a trade.  That will basically require Americans to rethink a central tenant of their current worldview -- that college is for everyone.  Very few people raise their children and tell them when they grow up they should work with their hands.  Even blue collar parents tell their children they want them to grow up and do something "better" than their parents.

Another problem is that student loans are blind to supply and demand.  They should be tailored better to market forces.  There is demand for degrees in engineering, technology, math, and the natural sciences, but far too many people are getting degrees in the humanities and the social sciences.  Now, the counterargument is that people should have the option of going to college for the sake of learning and not just for increased employment opportunities.  That may be true, but it doesn't mean the government should be subsidizing those efforts.

Anna Merlan
Anna Merlan

Very true on the bankruptcy issue, which if I'm not mistaken is one of the things the Student Loan Forgiveness Act would fix. And yeah, I think most people take those loans with the expectation and the willingness to pay them back, as you said, then run headlong into our shitty job market. 

Cuban mentioned in an update that he though the diploma mill schools were an issue too, but I don't think he made that nearly clear enough in the original piece. Dallas has a really staggering number of for-profit schools, some with shaky or non-existent accreditation. 

Mike
Mike

Then you have to scale back, attending a cheaper feeder school for a few years, or just get a degree from a cheaper school. TX has plenty of colleges besides those 3 large schools. Or you can attend them and get a lot of debt. It really makes no difference to society whether you get your degree at Rice, UT Austin, or East Jeepers State. A degree is a degree. You will learn practically the same things everywhere and most of it will have little application to your job. The difference only matters to the graduate in the type of job you get, friends you meet, etc. People are fungible. If you do not fill the spot in the work force someone else will. Consequently the student needs to step up and either get from family, loans, or work to pay for that difference, if he or she wants it.

Guest
Guest

I would assume that most people who work full time while attending school take fewer credit hours which knocks some of the cost off (and room and board is something you tend to have to pay whether you attend school or not), and UT-Arlington is actually even a good bit cheaper (6 hours at UT-Dallas runs $3,202 in base tuition and fees, UT-Arlington is $2,121 in base tuition and fees).

There are a lot of jobs where coming up with $4,500-$7,000 or so per year extra is still very difficult, but it isn't quite as difficult as $22K.

Andrew Gunter
Andrew Gunter

I go to UTD. I don't have a car. As a UTD student, you get a free DART pass. The red line goes to PGBT station and they have a shuttle running to campus from there.

Guest
Guest

Work harder at what?

And do they work better?

We don't live in a world where equal effort = equal outcome.  

Jon Daniel
Jon Daniel

Of course, Republicans love "certification". In a completely evangelical dogmatic world of religiousness, politics and culture, there is no need for analytic skills. There is no need for creative people, because the best and final measure of a person's worth is their job at a Fortune 1000, their attendance at XWY church, and their kids in the Southlake School district. Give someone a basic test, and the are "certified"!  

Oh why don't you ask Mr. Doerr about his view of the role of arts and sciences in education, since he is, you know a  Fellow of the American Academy of Arts & Sciences. I am pretty sure the current and past membership of that place would see that "certification" is not the goal of  education

Dallas_Joe_Schmo
Dallas_Joe_Schmo

The 5% has always been the group that sent their kids to college without loans.  Do you think Harvard and Yale had yeoman farmers attending during the Revolution?  What makes you or anyone else think you are entitled to go without a loan?  It used to be that people worked hard to get the resources together to go to college or were so excellent that the schools accepted them at no cost because they would be a future success and thus give back.  Now everyone thinks they should go and for free no less.

I guess I'll grow up to be a republican since apparently only republicans make up the 5%.

"Jimmy what do you want to be when you grow up?? - 'Rich!'  Well then, you'd better start voting that way!!" 

And just what exactly do the financial statements of universities have to do with healthcare again? Cause I seem to have missed your point entirely.  Must have been that crappy education I paid for before, during, and after I attended college (without loans).

Mike
Mike

College is an investment of which 90 percent or more of benefit goes to the holder of the degree, not the community. The community helps out a little, but the individual needs to pay the cost . If college A return on cost does not have a positive value, then move to B, C, or D. Picking a college because it has a cool rep, nice dorm, or good football team is what a child does. Like any adult decision, include possibilities of setbacks. Be realistic on your assumptions of income, updated with current economic status. Isolate your colleges that are affordable and only then worry about other factors.

Any student can go their own way and not worry about a realistic view of future. Just understand that your refusal to act like an adult mitigates any desire for us to have empathy for you. In the mean time, you better make that payment or else.

Brenda Marks
Brenda Marks

Yes, most, if not all, for profit schools are "accredited".  However, most of those accreditations are not recognized.  They created a body to serve as their accreditor.  Corinthian is a great example.  Get an associates degree from them, but if you want a bachelor's, forget it.  Your credits won't transfer.

Edgar
Edgar

I mostly agree, but I think students, as student-loan consumers, are gradually becoming more educated about the soundness of decisions to incur debt.  Thanks to blogs, word has been getting out that taking on hundreds of thousands of dollars for a law-school education may not be a wise idea, since so few law-school graduates find jobs that allow them to quickly amortize that debt.  Within that market, a revolt is taking place...students are suing schools, citing misrepresentations about their marketability upon graduation, and schools are finally being held to account for the cheap tactics they've used to inflate their success-upon-graduation statistics.  That's a market force bringing one subset of the education industry back into line; if only the others would follow.

Ed D.
Ed D.

For one typical year, UTD says "Tuition & Fees" runs $11,592, "Books & Supplies" cost $1,200, and "Room & Board" go for $9,050. So you're adding $13K per year (after taxes and such) if you want to get out in 4 years, barring tuition increases. And unless you're living with your family, food and rent are costs you have to account for when you're making out the budget.

It's not impossible, but if you can suddenly earn that much more money every year while also adding a full college education to your schedule, you're one impressivel person.

Jon Daniel
Jon Daniel

Work harder at what? School work. Many of the UTD/UTA students are older, and paying for the schooling themselves. Those people tend to have a different work ethic than ones driving from the frat house to the library in a LexusAnd do they work better? Well, the do better work, or so I am toldWe don't live in a world where equal effort = equal outcome.  John Wooden said "Activity does not equal achievement", so I guess I agree with this

Jon Daniel
Jon Daniel

I know several students, grad students and faculty members at all three institutions

RTGolden
RTGolden

It's really not a Republican or Democrat problem.  neither one of those parties has the answer to this situation because both of them are still living in the past.  The world has changed, the dynamics that drive the economy have changed, and the social structure of ours and the world's society has changed.  American politics is stuck in a Post WWII to Vietnam worldview, and the world they should be dealing with has moved far beyond that.

Yes, there is a place for Arts in education.  There is also a place for certificate-generating courses.  There is also a place for tradesmen and their associated schools and guilds, narrow-field higher studies, journeyman programs and all the other paths to employment that the world has seen over the centuries.

One thing I find odd about the liberal mantra about college is their assumption that everyone MUST go to college.  Isn't liberalism all about people doing their own thing, going their own way?

C Spot Run
C Spot Run

WTF dude, I'm talking about skills for jobs. Real jobs that people are hiring for. Food on the table jobs. The Fortune 1000 is the critical buy-in.

All your paranoid class warfare crap is getting the best of you.

What are you saying, Doerr is schizophrenic? Conflicted? Because from what I see he is right on track with the business model I suggested above:

http://blogs.wsj.com/ventureca...

Jon Daniel
Jon Daniel

Actually, that is incorrect. Only a small % of students at Ivy and Little Ivy's pay the rack rate. The rest have grants, scholarships, and loans. 

The point about reading financial statement is

1) Health care costs increases hit universities like every other business2) Capital improvement and other non-academic programs need to be taken into account, not just faculty, staff and grad students.

Mickister
Mickister

Edgar, your words strike too close to home for me.

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