headermask image

header image

The Ongoing Collapse becomes Obvious

Paul Campos, that genius over at insidethelawschoolscam, is posting the pleading emails from the law schools looking for more suckers. Apparently even schools in the top half of the US News rankings are still looking to fill those last seats and they’re behaving, as Mr. Campos says, like carnival barkers hoping to get anyone to step right up. They even have scholarships available! And you thought the admissions deadline was an actual deadline. I wouldn’t be surprised if those admitted after the deadline don’t count in the averages reported to US News.

Share

1 in 8 Iowa students didn’t realize they had borrowed money

We’ve already discussed the idea that no one can parse the wacko statements from the financial aid office. Bob Samuels, for instance, spent some time on UCLA’s financial aid web site and came away completely confused. And not only that, he called the financial aid office and they were confused by the web site. No one knew whether something with the label “help” was really help or just a loan disguised as help, a loan with an outrageous rate.

Now the news comes from Jens Manuel Krogstad in the Des Moines Register that a new survey of undergraduates at the University of Iowa found that 1 in 8 didn’t even realize they had borrowed money. Surprise! That makes it even easier for the banks and the college industrial complex to pile on fees and penalties.

Say what you will about used car dealers, but when people drive off if a late model cream puff that was only driven to church on Sunday, you can be sure they know what their monthly payment will be. It’s really sad for the college industrial complex when they’re being told to look up at used car dealers as models of consumer friendliness.

Share

Quebecois students on strike

I’m not sure how we can confirm the claim from the AP that the students in Montreal are on strike to protest the rising tuition. How does one know that a student is on strike? Does this mean they’re not hanging around in coffee shops talking about how they’ve really got to get cracking on that huge paper that’s due like tomorrow? Do they give up slacking? Do they not not read the assignments? Double negative intended.

Double negatives are par for the course. My impression is that the students are not going to classes to protest. Not only that, the reporting says that they used the word “scab” for a student who went to class. Some are even blockading the buildings. So not only are the students upset about not getting enough learning for their money, they’re willing to increase the price per unit of knowledge to infinity by blocking everyone from attending.

Yeesh. What a crazy idea in service of a great cause. They’re complaining that a service is too expensive, but they’re refusing to consume the service that they already purchased?

(It’s worth noting that Ian Austen’s article in the NY Times reports that the demands placed on the Quebec students are rather modest, especially by US standards.  He writes, “The government wants to increase the annual university tuition of $2,144 by $321 a year for five years.” While that’s a bit much on a percentage basis, that’s only because the university has been happy to exist on state subsidies alone.)

This really shows that students are off in la-la land. They’re assuming a role in society. They’re not consumers, they have a “job” as a person absorbing knowledge the only way they can imagine to protest is to quit serving that role in society in the same way that a plumber or a train driver would do it.

The proper way to protest is not to write the check. Paul Campos, the law professor over at insidethelawschoolscam, has offered several anecdotes that law schools are running fire sales for students on the waiting list with high scores. This is the only way to put pressure on the administrators because the administrators just think in terms of money.

Share

Grad students pushed out of the life boat

It is an open question whether the government makes a profit on the student loans. It sure looks easy when you can borrow money at close to zero percent and loan it out at 3.4 and it looks even better if you can charge 6.8%. But no one knows how defaults will come back to bite us.

The grad students are being pushed out of the Stafford Loan pool this July. And that just sounds good to me. I wonder about the worth of many undergraduate degrees and I’m very skeptical about the value of the graduate ones. If only 14% of the biology PhDs go on to find tenure track jobs, it’s clear that too many people are getting degrees. And any half-way intelligent bio grad student should be getting a big enough stipend to avoid taking any loans.

For more reporting , read Annamaria Andriotis at the WSJ/SmartMoney. She notes that one third of the big $1 trillion debt pie comes from grad studies. Many of the most egregious loan balances usually include one or two trips back to the well for more knowledge. (And let me add that the high cost of debt makes me think that Pope may have been wrong about drinking deeply at the pierian spring.)

Share

Still more on Elizabeth Warren, Harvard’s “first woman of color”

I feel like a broken record here. In the grand scheme of things, Elizabeth Warren’s Senate campaign has little to do with getting an economics degree in the price of tea in China. It’s just the embarrassments keep appearing and when the pitcher serves up fat, easy pitches, I feel a moral duty to clobber them.

First, Hillary Chabot at the Boston Herald reports that the genealogists are backing away from the claim that Ms. Warren is 1/32nd Cherokee because the so-called document is contemporary and no one can find the original. Ooops. More research that can’t be reproduced. Ugh.

But it gets better! Maggie Habberman at Politico reports that a 1997 article in the Fordham Law Review called Elizabeth Warren Harvard’s first “woman of color.” One link I saw put this wonderful title next to a picture of Ms. Warren pale face and blonde scalp.

Apparently part of the problem is that Michael Chmura, a former PR flack at Harvard, gave this tidbit to the author who was complaining about the lack of women of color. Not so, he said. Harvard does too have them. He also told this to the Crimson which printed their own back-patting version of the forked-tongue truth. Alas, he refuses to come to the phone and explain who told him to say this. I’m sure he didn’t come up with it on his own.

The best part are the quotes from the campaign worker trying desperately to steer the campaign back to something that Ms. Warren might be helpful. As I say again and again, Warren’s language about debt has been great, but boy is it ironic. Listen to Althea Harney, the poor chunk of meat tossed out in front of the lions to defend her boss:

It’s time to return to issues – like rising student loan debt, job creation, and Wall Street regulation – that will have a real impact on middle class families.

Hello, Ms. Harney? Paging Ms. Harney! People like Elizabeth Warren are why there is such a problem with student debt. Those huge six figure salaries don’t come from thin air. They come from the backs of the students and the taxpayers. If she really cared about student debt, she should have started trying to fix it in her own backyard. She should have taken a smaller salary.

Share

The NY Times continues to aim at colleges

Andrew Martin of the NY Times returns to the well to bring us another story of how the colleges are supposedly confronting the pushback they’re getting on higher costs. But as Walter Sobchak, our frequent fellow traveller in the comment section, pointed out, the newspaper spent preciously little space examining why the prices are so high.

And they raise their prices because they can and the high school parents still don’t push back. I talk to folks at parties and they tell me they’re thrilled because little Johnnie got a $15k scholarship to attend a school that costs $60k for the 30-odd weeks the school likes to pretend counts as a “year”. Wow. That’s 25%. Big deal. Sears has got a 40% coupon this week.

For most of the article, the academics just sit there and blame the states for not giving them more money. Sigh.

Share

NYTimes Notices Student Debt

Let me say generally nice things about the long, long piece by Andrew Martin and Andrew Lehren at the NY Times. They drill down into the debt problem with as much focus as we’ve seen from the main stream media.

Alas, they don’t have the advantage of stewing in the bile for several years as I do. They haven’t poked around long enough to see just how wrong some of the claims happen to be.

They repeat some of the classic CYA manure that the press loves to parrot. They claim that many economists claim that you’re better off with a degree than without one, even though just a few pages away they’re lionizing Mark Zuckerberg. They also repeat the bogus low numbers about “student debt” from the college board, even though most of the people they interview owe dramatically more.

I predict that they’ll come around. In other parts of the article, they sound almost incredulous about the horse manure shoveled out to the students in the so-called financial aid package letter. Why do they call it “aid” when the debt comes with such a high rate of interest? Many students need to hire an account to see just how much they’ll really owe when they finally discover that the so-called “aid” is really a loan.

Bob Samuels did a great job poking holes in the way the financial aid office can’t even answer the questions themselves. The BS is piled higher and deeper.

But they’ll figure it out.

Share

Only 50% of recent graduates are employed full time

At least that’s the good news from a study compiled by Charley Stone, Carl Van Horn, and Cliff Zukin at Rutgers. Some other nasty tidbits:

  • The median salaries are down 10% from before the recession from $30k to $27k.
  • Only 50% have a job that requires a college degree.
  • 78% say that their job does not qualify as a “career”. It’s just something to get by or a stepping stone.

And what’s the best thing that colleges can do to help prepare the kids for real work? Help them get an internship! In other words, get them as far away from college as possible and make sure that the professors have nothing to do with the work. Sigh.

Share

What do we do about the debt collectors?

Kelly Field at the Chronicle of Higher Edumacation brings us some horror stories from the student debt collection  industry.

Share

California State Colleges Snub Californians

Was it just a few years ago that 22% of California’s fresh-faced youngsters were heading off to a university funded by their family’s taxes? That vision is so 2007. According to this report from the Public Policy Institute, only 17% of the California Girls and Boys were staying in state. Why? Oh, perhaps because the state schools were busy admitting high paying out-of-state kids. Woo hoo. California kids get to pay twice. First, they pay the taxes for the California schools and then they get to pay full tuition out of state.

Share

PhDs on Food Stamps

Stacey Patton at the Chronicle of Higher Edumacation struck a nerve with an article about all of those PhDs and Masters degree folks on food stamps. The article opens up with someone with a doctorate in medieval history talking about how she’s not a welfare queen and then wanders around the campuses meeting more people who are (1) gainfully employed and (2) on the dole.

There seem to be two distinct issues. The first is that it’s quite shameful for the universities to continue paying adjunct professors so little. It is one thing to have professors fixing that tweed jacket with leather patches and it’s something else entirely to have them need government assistance to buy food. In each of these schools, there are certainly other professors who are getting full salaries and teaching fewer courses.

But, alas, these PhDs on food stamps are also surprisingly clueless given that we’re supposed to think of a PhD as proof that someone is very clueful. What did this woman think would come of a degree in medieval studies? Haven’t these PhDs  heard of the laws of supply and demand? She says that it’s not right for someone educated to be on food stamps as if all of the hard work on a dissertation was a guarantee against poverty and injustice. All of that hard work won’t protect a farmer when a hail storm destroys the crops. All of the hard work won’t protect a manufacturing company if a rival gets to market first. Why should the education business be any different?

What is very sad about this article is the fact that the PhDs don’t learn from their experiences. The basic toddler can understand the causality. If doing A leads to B, you try not to do A so often. Alas, what do these underpaid but very educated people do? They want to sucker more people into the education tent. The article is supposed to have a happy ending because one of the welfare queens gets a full-time, tenure-track job. And so the cycle of abuse continues.

Share

The glory of unpaid internships awaits the fresh-faced youth who will be graduating

At least that’s the message from Steven Greenhouse’s reporting in the NY Times. As Tom Lehrer sang, “Soon they’ll be sliding down the razor blade of life.” But hey, at least they’re not going deeper into debt when they work at the unpaid internships. Oh wait, in some cases they are. They’re paying tuition to get credit because the government industrial complex says that you can’t work for free unless you pay off the college industrial complex. Whoo hoo!

Share

Berkeley fires Ass. Vice Chancellor for sticking her snout in the trough

Sometimes the headlines just write themselves.

It’s hard to believe, but Michael Krupnick at the San Jose Mercury News reports that the Berkeley administration actually fired someone for making too much money. Oh wait. That’s not exactly correct. They fired an assistant vice chancellor for tripling the salary of her “sex partner”. The sex partner still has his job but it looks like they’re trying to crack down on him for swearing.

How much money is at stake? It’s the kind of cash that gets families– oops, I meant sex partnerships– into the 1%. The woman, Diane Leite, may only be an assistant to an assistant, but she was bringing home $188,000. Her sex partner used to make only $41k but he started getting $120k in 2010. He was two notches below her in the Berkeley org chart and that makes him an assistant to an assistant to an assistant to an assistant. Who knows how much he makes today while we’re waiting to hear what punishment he must endure for his swearing.

Share

Rutgers students pay $1000/year for Football

Curtis Eichelberger and Elise Young from Bloomberg did some poking around the budget of Rutgers University and found that the athletic department needed an extra $28 million from the general budget. It raised some of its budget from tickets and jerseys, but it still needed more. The smart reporters did some division and figured out that this came to more than $1000 per student. Ugh.

Share

Did Elizabeth Warren commit academic fraud?

When we last heard the words “fraud” and “Harvard” in the same sentence, the news media was focused on Adam Wheeler, a clever scamp who talked his way into Harvard, but was now on his way out the door. He claimed to have a fancy pedigree including nice grades from Phillips Academy and M.I.T. For some odd reason, the Harvard admissions mechanism didn’t notice that Mr. Wheeler received As instead of the normal 5s given out at MIT for superior work. Ooops.

Harvard turned around and pressed 20 criminal charges including larceny. It’s not nice to embarrass powerful people. (Yale did much  the same thing when it was deceived.)

Now the word “fraud” is back in the same sentence with “Harvard” because another clever scamp, Bob Maginn, the Massachusetts GOP chairman, is asking whether Elizabeth Warren committed academic fraud by claiming to be a Native American. (See reporting by Chris Chaplin at the Boston Herald.)  As we’ve seen, she had no research to back this up herself. She just clicked those magic keys just like Adam Wheeler. The only public knowledge we have comes from independent researchers who found the word “Cherokee” in the marriage license of her great-great-great-grandmother.

Is this resume padding? Is this like what Adam Wheeler did? What a clever scamp.

Share

Cal State starts to smolder

Jennifer Medina from the NY Times tells us that the students at Cal State are so upset by the high cost of college that they’re going on a voluntary hunger strike to get media attention. In the past, students would go on an involuntary hunger strike by eating Ramen Noodles for four years. Today, they just ring up the student debt by heading off to the super fancy cafeterias to eat lobster. Then they wonder why they’re broke and in debt.

Don’t be too worried about the kids at Cal State. They’re not going on a traditional hunger strike, the kind where the striker just drinks water. They’re just avoiding “solid food” and by “solid food”, they don’t mean food that was solid just a few minutes ago. The article notes that the strikers are brewing up a pureed concoction of kale, apples, and celery. They’re just drinking prechewed food. I’ll bet that there are college students drinking the same concoction to lose a bit of weight.

But it’s the thought that counts. The good news is that they’re focusing on administration salaries too, saying that they’ll stay on their diet “for at least a week” to show that they’re serious in their demand that the colleges roll back salaries to the 1999 levels.

There are troublesome notes hidden in the article. One adjunct professor — said to make about $50k/so-called-year– is watching class levels grow as kids can’t get the courses they need. The tenured profs are said to clear $100k for twenty some weeks. In response to my posting about the professors’ plan to go on their own strike this fall when someone might notice, one commentator (Walter Ockham) offers the tantalizing news that the tenured professors don’t do much work for this fat paycheck. Just two or maybe three classes. There are no PhD students and the demands for “research” aren’t very high. The semesters only last 14 weeks. Nice work if you can get it.

The students might want to look at the meager teaching loads when they wonder why they can’t get the courses they need. If we use Ockham’s numbers, it’s possible that professors can collect $100k for about 170 hours of work in front of students. If we assume that they’re supposed to prepare 1-2 hours for each 1 hour of lecture, we’re still looking at someone who’s working less than 30% of an average work year. Nice work if you can get it.

Share

Quebec students strip to protest high tuition

I can’t say I get the connection. Maybe I can just say that the students have learned how to get attention. The prices seem laughable compared to US tuition but I think they’re smart for putting the pressure on as soon as possible. For more, read the AFP reporting.

Share

The Accelerating Collapse: Law School Edition

Paul Campos offers a staggering data point on the rampant discounting happening in secret with the latest round of new law students:

In the past week I’ve corresponded with a 0L who as of two weeks ago had only gotten into Touro (unranked), Hofstra (#89), and St. John’s (#79).  She was then admitted off the waitlist at Cardozo (#56) and, much more significantly, offered a $30,000 per year discount on tuition in the bargain.  A few days after that she was admitted to George Washington (#20), and shortly afterwards GW offered her a more than 50% discount off the (increasingly fictional) official tuition price. Cardozo reacted by raising its offer to $43,000 per year, i.e., more than 80% off sticker.  A glance at sites like TLS reveals that even schools like Chicago are offering significant tuition discounts (20%) to people who they just offered off their wait lists this week.

Wow. Talk about price collapse. But if you don’t have warm bodies for the seats, you need to sell them at whatever the market will bear.

Share

The $10,000 degree grows closer

The University of Texas announced firmer plans of how one can get a bachelor’s degree for just $10k. Whoo hoo!

Share

Cal State profs vote to strike when they think someone will notice

Oy. Things have been tough at Cal State and after 22 months of fruitless negotiations, the professors have voted to go on strike. How many? Why 95% are so fed up they’re ready for a two day strike.

Alas, there’s a problem. It’s already past the end of April and that means the school year is essentially over. The kids won’t be back until the fall. If they went on strike now, no one would notice! So they’re going to wait a bit but they’re still really cheesed off at the administration. Honest. There’s a downside to limiting your interactions with the customer base to about 3/5th of the year.

I realize that professors work hard on their research all year round. Many are workaholics. But the college industrial complex has to realize that the rest of the world has a different kind of job. If the assembly line workers at GM voted not to show up, the cars would stop rolling out of  the corporation. If the professors don’t show up in the summer time, it might mean we have to wait a bit longer to read some pithy, 35 page paper on the TransMeta Theory of BioTheater or something like that.

(For a full accounting, read Kelly Puente at the Contra Costa Times.)

Share