Good article about student loan defaults.
About 22% of those not in school are either in default or forbearance. Even in a bad economy, that is a big number. Here is what I think it says (posted as a comment on the article).
“As a former professor, my advice is, follow the money. Ask who gets it and how. It’s not the students. They are just a way of transferring the money to colleges and universities – whether it be government money, their money, or their families’ money. From the institutions, it goes on to investment managers, administrators, professors, builders, etc… So wonder Bill Gross of Pimco wrote “…Universities are run for the benefit of the adult establishment, both politically and financially, not students…” (Quoted with permission from http://www.pimco.com/EN/Insights/Pages/School-Daze-School-Daze-Good-Old-Golden-Rule-Days.aspx)
From my experience and observations, here is how far too many schools maximize their revenue and prestige. They prey on the students’ naiveté. As David Riesman wrote in 1980, “…advantage can still be taken of [students] by unscrupulous instructors and institutions…the student estate often does not grasp its own interests, and those who speak in its name are not always its friends…students are…often misled in their choices…” Many times schools market to what Riesman calls student “wants” and not to student “needs”. What students need is to learn, but they can be led to believe they don’t need to study very much to do this. They are usually led to believe this by professors and institutions that know better. It’s become so bad that “grade inflation” is “so last century”. You are not up to date unless you are also into “content deflation”. And, of course, with “content deflation”, it’s really tough to get an even adequate education.
When a way is found to hold colleges and universities accountable for delivering an education, not just a degree – and only then – will students get good jobs, and will Silicon Valley, and other business, find enough well educated Americans to fill their needs.
Anyone who wants to read more can go to my blog inside-higher-ed.com”
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