I just about had a heart attack reading the headlines from two NY Federal Reserve researchers in Buffalo, that college was
still a "good investment" despite the costs. The authors, Jaison R. Abel and Richard Deitz, showed a few graphs indicating that college completion still resulted in significant wage premiums, and muttered something about “back of envelope” projections to prove their point.
Are these people mad? Have they not read
Annie Nova (CNBC), Jillian Berman (Marketwatch) or Mike Vasquez (Chronicle of Higher Education)? Have they not glanced at
Wikipedia
or thelayoff.com or bothered to use IPEDS help? Have they read Suzanne
Mettler’s “Degrees of Inequality”? Have they ever heard of the
layoff.com or
College Meltdown? Don't they listen to
Dave Ramsey on the radio? The answer is no and probably no, no, no, no, no, no, definitely not because it’s too heavy, no, no, and no.
Have these guys no understanding of the outrageous costs of higher
education: tuition, housing, board, text books, transportation,
computers, fees, officially licensed college t-shirts, football tickets,
concert tickets, pizza, beer, drugs, pregnancy tests, and who know what
all else?
Don't
they know about the millions who are underemployed after college, the
millions that have delayed leaving home, delayed marriage, delayed
having children, and delayed starting businesses? Don’t they know anyone
who is suffering from the College Meltdown? Have they ever heard of the
“gig economy” or talked to an “adjunct professor”? Don't they have
friends or coworkers who have nervously cosigned on loans for their children?
Speaking of businesses, haven’t these NY Fed guys figured out that there is a failing for-profit college system,
Bryant & Stratton College, luring people with
slick ads, whose corporate headquarters is literally two blocks from their office? A school whose target demographics include
single mothers with jobs and people with two jobs, who already can't make ends meet?
In 2019, subprime Bryant & Stratton College will be luring
hardcore gamers with their
esports programs. BSC already has
junior college basketball at the dwindling Buffalo campus.
If you read the small print in the NY Fed article, these two wise
guys from Buffalo oh so briefly mention that the wage premium doesn’t
apply to 25 percent of the people who start. They note that the wage
premium is muted in the 40 percent who don’t finish college. And the
wealth premium, you know, the actual return on investment after trying to pay off the loans? Forget about it.
They don’t mention that college students are selling their bodies (
"Sugar Babies") across the US or
selling drugs to get through college. (For the record, I sold my body very cheap to the US Army for an ROTC scholarship to get out of Western Pennsylvania).
These guys don’t mention that more than 40 percent of all student
debtors are not paying off their principal. Or that millions of
Millennials with student debt are delaying marriage and kids, not
starting families or businesses. And by having fewer kids, they are
setting the nation up for another phase of the College Meltdown in
2026.
Nor did they note that peak enrollment was in 2010-11 and that
numbers have decreased every year since then. I suppose they’d say that
was all due to a great economy, like so many others who do not live near
reality, even in Buffalo. Really, it would never have anything to do
with outrageous prices or record-setting inequality.
And wait a second.
Aren’t these two the guys who wrote College is Not for Everyone, back in 2014? What has happened? Have they too contracted College Mania?
Perhaps the men are talking about the business of education, which
has been a good investment for some. The higher ed “racket” involving
dorm building, restaurant building, gyms and climbing walls. Or the
student loan business that’s booming and student loan asset-backed
securities also known as SLABS. Or the online program managers that
actually run colleges online. Or the marketing and ad agencies that are
profiting hand over fist, as some students literally live in their cars
or struggle with hunger. Or maybe they are talking about the bright
future behind unregulated
“human capital contracts” (What could go wrong?).
But why should I be so angry, literally fed up? The NY Fed is not the
only organization feeding the “College Mania!” It’s everyone, aside from
Dave Ramsey,
Thomas Frank, and too few others.
But who reads Thomas Frank? Hopefully it’s the same people who read the two guys from the NY Fed.