The Education Bubble?

[Jeanfromfillmore]

The Education Bubble?
Deborah Lambert, June 23, 2010


Has higher education become the equivalent of a giant Ponzi scheme? Perhaps.
For generations, the promise that their pricey diploma held the key to the American dream, has attracted students and their families to follow that dream, no matter what the cost. Plus, the “cheap and readily available credit” made the borrowing process a snap.
That may be about to change. In fact, savvy students and their parents are already hitting the brakes.
No wonder.
Money magazine reports that the amount families pay in financial aid increased by 439 percent since 1982.
NakedLaw.com recently listed several reasons why the college tuition bubble is about to burst, said Erin O’Connor on her website Critical Mass.
For one thing, tuition increases at double the rate of inflation mean that “the cost of college doubles every nine years.” Plus, “for-profit colleges are paying homeless people to take out federal loans to enroll.”
Also, colleges are on a “non-teaching staff hiring spree that far outpaces enrollment.” During the past 20 years while higher education enrollment has increased by 40 percent, many schools have “doubled their non-teaching staff.” Many of these staff members have newly assigned duties of questionable value like “monitoring environmental sustainability.”
There’s more.
As if the burden of mortgage debt fueled by easy credit wasn’t enough of a burden, many of America’s college graduates have landed in “Real World 101” saddled with the equivalent of another mortgage, plus a low-paying job–or no job at all.
Plus, schools are over-spending on luxury perks that have nothing to do with improving education. “At High Point University in North Carolina, students are treated to valet parking, live music in the cafeteria and Starbucks gift cards on their birthdays.”
Deborah Lambert writes the Squeaky Chalk column for Accuracy in Academia.
http://www.academia.org/the-education-bubble/

[Twoller]

Here in California, universities are being plagued by perpetual construction projects as well. Sports stadiums. And look at the labor involved, maybe they're legal, maybe their not. They don't sound like citizens.

[Don]

This has taken a huge personal toll on college grads who are stuck with huge loans and no employment opportunities. These loans are not dichargeable and can be collected from tax refunds.

[ilbegone]

Maybe I'm not informed, but I don't believe this one:

“for-profit colleges are paying homeless people to take out federal loans to enroll.”

[Ayatollahgondola]

Originally Posted by ilbegone

Maybe I'm not informed, but I don't believe this one:

I'm afraid to say it is true. Some teens here were arrested for this in Sacramento less than two months ago

[Ayatollahgondola]

update:

According to the guilty plea, Duplessis admitted that in November of 2008, Hoa Kelly asked him whether he wanted to get financial aid money without having to go to school. Duplessis agreed and gave her his Social Security card and date of birth. Duplessis had no intention of going to school, nor did he intend to repay the money, according to a U.S. Department of Justice news release.

http://blogs.sacbee.com/crime/archiv...to-man-63.html

Also charged are Nakesha Sharrieff, aka Takiyah Raheem, and Aysia Hanifah Kahan, 23; Thomas Keys, 23; Hoa Tasha Kelly, aka Tasha Kelly, 24; Jewel Minor, 24; and Teaona Williams, 24, all of Sacramento