You may have recently shared a holiday meal with a relative who has a bachelor’s degree, plenty of debt, and not much of a job. You may wonder whether college degrees have become worthless. For dropouts, though, the picture is even worse: The average adult with a bachelor’s degree earns 59 percent more than the average adult who attended college and didn’t finish. And for all the emphasis the United States puts on promoting access to college, especially as a way to improve the prospects of students from poor families, there has been far less of a focus on making sure these students end up with degrees.
The federal government could play a larger role in reducing the dropout risk for poorer students. By tying the payments that colleges receive from Pell grants — a need-based financial-aid program for college students — to graduation and employment, these institutions would have a greater stake in their students’ success.
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Prof. Glaeser is guilty of confusing causation with correlation. If everybody who attended college got a bachelor's degree the overall unemployment rate wouldn't fall to 3.9%. It would go up because the supply of degree holders would go up relative to demand, and employers could be pickier and could pay lower starting salaries. People who graduate from college tend to be people who finish what they start, and finishing what you start is a valued trait with potential employers. Tough break for the Galveston gals in the NYT but some of them were in the wrong school to begin with and others made some very bad decisions. People who are prone to making bad decisions are not sought after by potential employers. If you are prone to making bad decisions you should seek a government job. It's tougher in the private sector, they actually expect results.
These young people often do not have much support by people concerned with their best interests. As a result, they are preyed upon by some "institutions of higher learning" sinking them further and further into debt obligations approved by the school and changing their majors and areas of study. Its not supposed to be a game of elimination, survival of the fittest. We're trying to educate people.
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I normally agree with the professor but not in this case. If federal funds are tied to graduation rates, the main result will be rampant grade inflation.
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The overall college financing system needs to be looked at. Sallie Mae is a behemoth run amok!
Getting out of poverty involves more than a degree. The traditional college experience which includes getting away from home and the neighborhood gives kids a chance to develop independence, a broader perspective, and a new circle of friends. On-line schools and commuter colleges don't do that. While they may fill a narrow role in society, for example for married students, they are there for people who are limiting their horizons. The feds should not support it at all. The only reason for the fed to get involved is to help people out of poverty. We need to invest in people most likely to succeed and in schools with a proven track record. No money for Phoenix and the many other schools which are so dependent on federal dollars. Shut down those institutions and channel the money to scholarships to the traditional schools, many of which have support programs in place for first generation college students.
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There are also stories out there of students out of trade schools having no problems finding a job. In fact, employers in the trades are beating the bushes looking for good talent. Not everyone is cut out to go to college. One size does NOT fit all.
you were lazy and did not finish the degree? no problem your debt is forgiven.
You buckled down and made tons of sacrifices and got the degree? pay me NOW!
The problem is the same as the mortgage crisis. The people did not have the correct schooling or forewarning on how much debt will be their responsibility. The old borrow more because it is deferred adage needs to be addressed. If after two years and x amount of dollars borrowed you still do not have a major or have poor grades then you should be sent to counseling on the loan matter. If you are getting bad grades then the loan money is cut off. (2.0 or lower?) This will save many party kids from defaulting on 4 years of debt.
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Sending federal financial aid to the University of Phoenix - what a joke. Is the author of this article an investor in UP!
Online universities, like the University of Phoenix, should be closed down. The online companies have found the goose that lays only golden eggs. The Phoenix can pluck that golden egg supply into infinity, unless the government no longer requires an iota of accountablitiy.
However, what about state universities? They can admit students into classes that cannot possibly provide quality education, resources, scholarly experiences, or graduation degrees!
The federal government could do a great deal with minimal checks & balances as to what programs are receiving tax-payers money. But NOTHING is ever done about it.
When was the last time you heard a Washington politician express concerns about the federal government's waste of taxpayers money? Hell-no, they are planning another Wall Street bail-out.
Great, encourage universities to hand out degrees so they qualify for pell grants. Great idea.