Category Archives: Education / Youth

Bought and Paid For

A Federal District Court judge in Washington recently upheld new Obama administration rules that deny federal aid to career training programs that charge outrageous amounts, saddle students with crushing debt, and give them useless degrees in return.

As the New York Times editorialized

The ruling strongly reaffirms the government’s authority to regulate these often-corrupt programs — and comes at a time when federal and state investigations are uncovering fraud and misconduct by for-profit schools all over the country. Regrettably, however, Republicans in both houses are moving bills that would block the Obama administration from enforcing the rules.

As the editorial notes, the new rules were inspired by data showing that students in for-profit schools account for only about 12 percent of college enrollment, but nearly half of student loan defaults.

We the taxpayers have been footing the bill for these predatory practices.

Research has consistently shown that graduates of for-profit institutions are more likely than graduates of other institutions to have debt of more than $40,000 by the time they leave school, and far less likely to find the employment promised by those marketing these programs.  What is particularly odious about these “schools” is that they deliberately target veterans, minorities and the poor.

Republican attempts to block the new rules are not sitting well with organizations that work on behalf of consumers, veterans and the poor. This spring, a coalition of these groups sent a letter reminding Congress that 37 state attorneys general are jointly investigating allegations of fraud in for-profit schools. Various investigations have already uncovered deceptive tactics; dismal graduation rates; false or inflated job placement rates; and dubious sales and admissions policies that target veterans and students of color.

It’s hard to argue with the Times‘ conclusion.

At issue here is an industry that routinely exploits the country’s most vulnerable citizens and fleeces the federal student aid program at the same time. The administration’s effort to bring it under control deserves support, not legislative sabotage.

Misunderstanding Tenure

Wisconsin Governor Scott Walker seems to be engaged on a vendetta against higher education.

Walker has cited Wisconsin’s (very real) fiscal woes as justification for slashing  $250 million dollars from the University of Wisconsin’s budget; however, Time Magazine reports that he has proposed forking over that same amount– $250 million in taxpayer money– to help construct a new arena for the NBA’s Milwaukee Bucks, who have threatened to relocate if the city doesn’t build them a new home by 2017.

Walker previously tried to change the mission statement of the University from a search for truth to “meeting the state’s workforce needs.” He retreated after that effort created a firestorm within the state, but now he has launched an entirely gratuitous attack on tenure.

There is immense public misunderstanding of tenure. Tenure is not “job security,” as it is often portrayed; as Josh Marshall recently wrote at Talking Points Memo, 

Tenure is among other things in place to protect scholars from the patronage and political demands of the moment and incentivize independent scholarship free of ideological, market or political pressures. That is 100% true. And by and large it is a good system – especially when understood in the larger context of academic life.

Tenured professors are protected from dismissals based upon the expression of  unpopular viewpoints. We are not protected against dismissals for poor work performance. (My own school has a post-tenure review process that defines performance expectations and expressly permits sanctions–including termination–for continued failure to meet those expectations.)

In a very real sense, however, the actual operation of the tenure system is beside the point. As Marshall notes,

The crown jewel of the Wisconsin university system is the University of Wisconsin at Madison. It is one of the top research universities in the country and the world. With this move, you will basically kiss that jewel goodbye. To me this is the more salient reality than whether you think academic tenure is a good thing or not in itself.

If this happens, over time, the professors who can will leave. And as the top flight scholars and researchers depart, so will the reputation of the institution. So will graduate students who want to study with them, the best undergrads, money that flows to prestigious scholarship. Don’t get me wrong. Not in a day or a year or even several years. But it will. If you don’t get this, you don’t understand the economy and incentive structure of university life.

If Walker’s attacks on a storied academic institution are successful, the University will be hard pressed to “meet the workforce needs of the state,” let alone engage in a search for truth.

Student Debt is a Very Big Problem

The Consumer Financial Protection Bureau recently estimated the amount of total student debt at nearly $1.2 trillion. (Yes, that’s trillion with a “t”) and reported that federal student loans alone make up more than $1 trillion of that amount, with private loans making up the remaining $165 billion.

But as the website Vox reports, actual debt incurred for college is probably higher. Some students or parents use credit cards, loans from retirement plans, or home equity lines of credit to pay tuition, fees, and living expenses. Those financial products aren’t included in the $1.2 trillion estimate.

The total amount of student debt in the US has more than tripled in the past 10 years, as more students attend college and a higher proportion of those students take out loans. Thanks to rising costs, they’re also borrowing more than students did in the past.

The staggering amount of student debt isn’t just bad news for the students anxious to find good paying jobs that will allow them to repay those loans; it’s a huge drag on the economy. Student loan borrowers are less likely to buy a car or a house, in part because they can’t save for a down payment. They have less disposable income for consumer spending. Their credit scores are worse.

And since the students taking on debt tend to be from needier families, the student loan crisis is yet another structural impediment to greater income equality.

There has to be a better way.

Many countries have either free higher education, or extremely low tuition and grant aid: Germany, Denmark, Finland, Iceland, Norway, Sweden, Mexico and Brazil. Other countries that don’t offer free higher education have instituted small student fees. Australia and New Zealand have a system tuition and fees, but student loan repayment is entirely based on later earnings; student borrowers who make less than $50,000 a year owe zero monthly payments, and never pay more than 8 percent of income.

If they can do it, so can we.

Remember when America was the land of opportunity and social mobility wasn’t just a story we told each other?

Economic Straw Men

A friend recently sent me one of those irritating articles purporting to lecture “liberals” about economic realities. This one was unusually smug. It was written by a self-styled “economist” and published by Forbes; titled “Ten Economic Truths Liberals Need to Learn,”   it mostly rebutted “straw man” positions that no one–liberal or not–actually takes.

I won’t go through the whole list, because you can read it for yourselves, and because we’ve all heard these “truths” before.

“Government cannot create jobs” is an oldie but goodie. Like many of the others, it is “true” only in a very limited sense; obviously, government can and does create jobs for teachers, police officers, and other government workers, and when it invests properly in infrastructure, those investments also generate jobs.

What that flip formulation also misses is the essential role government plays in providing the infrastructures that make private enterprise and private job creation possible.

Several other “truths” on the list are equally wrongheaded: the author claims that low wages are not exploitative, for example–among other things, conveniently overlooking the fact that taxpayers are making up the (enormous) difference between low wages and living costs, and thus effectively subsidizing corporate profits.

I guess it depends upon what your definition of “exploitative” is.

But the “truth” that sent me over the edge was this one:

Education is not a public good. We provide publicly funded K-12 education to all (even to non-citizens), but the education provided produces human capital that is privately owned by each person. This human capital means more work skills, more developed talent, and more potential productivity. People with more human capital generally get paid more, collecting the returns from their education in the form of higher earnings. One common defense of education as a public good is worth refuting here. Yes, education helps people invent things that benefit society. However, they will expect to be paid for those inventions, not give them away for free in return for their education.

This betrays an appalling lack of understanding of both education and the public good.

READ MY LIPS: Education is not synonymous with job training. There is nothing wrong with job training–it’s essential–but a genuine education is far more than a skill set that makes someone marketable in the dystopic society idealized by the (presumably trained but clearly uneducated) twit who wrote this.

Job training produces people who produce things. Education produces people who create art and music and literature, who develop philosophies and political systems, who innovate and imagine and beautify cities and civic environments.

Job training allows people to be productive economic units. Education allows people to be responsible citizens.

If a polity consisting of thoughtful and informed and genuinely educated citizens isn’t a public good, I don’t know what is.

What We Know That Just Ain’t So

I forget the source of this old quote, but I’ve always liked it: “The problem ain’t what we don’t know, it’s what we know that just ain’t so.”

Recently, a regular reader sent me an article from “NeuroLogica Blog” (there’s obviously a blog for everything) that documented that hoary saying.

When asked what percentage of the population is Muslim the average answer was 15% when the reality is 1%. How many people are Christian: average answer 56%, reality 78%. How many people of working age are out of work and seeking a job: average answer 32%, reality 6% (at the time of the survey). That one seems strange. Did people really think the unemployment rate was 32% (that was average, which means some people thought it was higher)? During the great depression the unemployment rate peaked at 25%. What percentage of girls between 15 and 19 years old will give birth: average guess 24%, reality 3%.

As the author noted, the interesting (indeed, the pertinent) question is – why are so many people so misinformed about the facts? After all, these are verifiable and concrete data points, not “facts” that are really value judgments like “socialism is bad” or “religion is good.” And as the author also noted, the internet makes it incredibly easy to locate and verify these facts.

The article listed “the usual subjects”–education that doesn’t sufficiently teach critical thinking skills, a fragmented and frequently lazy media, politicians whose spin (and outright lies) are rewarded. All of these are implicated, but perhaps the best explanation is confirmation bias.

…the tendency to notice, accept, and remember information which confirms your existing narrative. The fact that we have narratives also is a huge factor. There is a tendency to latch onto themes and narratives, and then use facts to support those narratives, rather than to alter our narratives based on the facts. It is therefore no surprise that facts which have political implications have been so distorted to fit political narratives.

In other words, confirmation bias convinces us of things that we want to believe, but that “just ain’t so.”

And we wonder why Americans can’t find common ground.