Again, we see Congress pushing the envelope, as did Mssrs. Frank and Doll in the mortgage mess (virtually same actors in the student loan case), in this case for creating a structure almost guaranteed to raise defaults by allowing less -than-qualified-and-verified-assets, the college degree, to be used as "collateral" for problematic loans, repayment being based on speculation that the degree owners would achieve gainful employment that justified the investment. There is no evidence that either the process that generated the loan demand, or the results to date thereof, are valid, more the contrary.
Universities have responded to media and government-generated demand by terrific and unwarranted expansion of courses to fill in degree requirements, recruit and overpay less-than-qualified professors (while loading them up with benefits and perks), building unneeded and palatial support mechanisms to help justify the underlying expansion, and more. When we have higher total undergraduate and graduate degrees granted than ever, but less and less graduates eligible to full the technical and scientific job requirements needed in the modern marketplace, education has definitely gone astray. Advanced degrees in social sciences and lesser skills may help pad the revenues and budgets of these "higher learning" institutions, but do little to satisfy the demands of the modern American economy, so much so that the level of recruiting from outside the U.S. for these skill sets exceed the amount produced by the U.S. educational institutions. How's that for poor planning and management?
About Student Loans
Read the Article at HuffingtonPost
No comments:
Post a Comment