Underwriting Standards for Universities? Why Not?

“…”…if we had some sort of underwriting standards…” …[the author of the report] Mr. Delisle said…”

What a great idea. Here is why.

I am a former professor who has spent years observing universities – and professors – working the system any way they can. (And there are lots of ways they can. See my blog www.inside-higher-ed.com .) Most of their methods are based around two big advantages that they have: the trust the public puts in them as “universities” and “professors”; and the lack of knowledge of the product that their “consumers” (aka “students”) have of their product. This trust and lack of knowledge allows many universities and professors to unscrupulously cater to “consumer w ants”, which are not always “student needs”. The students don’t usually know this. (The universities and professors do.)

Later, when these consumers become graduates, many are convinced that “to get a good job nowadays, you need an advanced degree”. The reality is you need an education, not just a degree – and if you got it the first time, you probably don’t need an advanced degree to get a good job.

So, back to underwriting. If I want to borrow money for an investment, I have to demonstrate that both the investment is a good investment and I am capable. In the same way, it seems to me that the government could ask to see the data on a university to see if it is a good investment, and appropriately allocate it a total amount of funds. They could then look at the degree (that is, from what school) and transcript and background of the borrower to determine how much the borrower could get.

I think this would put pressure on universities to make sure that their degrees make their graduates good investments, and, that they (the universities) were good investments because of this.”