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A new survey by the National Association of Consumer Bankruptcy Attorneys found that 81% of bankruptcy attorneys say that potential clients with student-loan debt have increased either "significantly" or "somewhat" in the last three to four years. The sharp recession and historically sluggish economic and jobs recovery have taken their toll. But the numbers are another sign that major troubles may lie ahead for higher education. Critics contend that we are in the middle of a "higher education bubble," meaning that increasingly the value of a college degree does not match the rising cost.
Members of Congress have steered more than $60-million in earmarks in recent years to colleges and universities that employ their spouses and children, a Washington Post investigation has found. The biggest beneficiary, by far, was the University of Mississippi, which received $45-million with the help of Sen. Roger F. Wicker, a Mississippi Republican whose wife works as coordinator of student services for the university's Tupelo campus. In many of the cases, the lawmakers told the Post that their efforts had been motivated by public interest, not personal gain.
Under the Fix UC proposal, students would pay 5 percent of their income for 20 years following graduation. Fix UC recently presented the idea to the university regents. The idea is that students would have a dependable bill to pay, rather than wrestling with unpredictable tuition increases and rising debt. It's an appealing idea to some, but not a brand new one. Bob Shireman of the nonprofit group California Competes says conservative economist Milton Friedman wrote about similar concepts in the 1950s, saying education should be seen as an investment.
The Obama administration puts its stamp Tuesday on a strategy to boost the nation's numbers of science and engineering graduates by working harder to retain those already in the college pipeline. Increasing the retention of students majoring in science, technology, engineering, and mathematics to 50 percent, from current levels below 40 percent, would create three-fourths of the one million additional degrees in the STEM fields that the administration sees as necessary over the next decade, a White House panel said in a report to President Obama.
In his proposed budget, Virginia Governor Bob McDonnell is seeking to cap the use of tuition dollars from in-state students to provide financial aid, a practice employed by almost all colleges and universities, public and private. McDonnell has said he is pushing the cap to spur conversation about aid policies and to keep down the cost of college education, saying the current structure is placing a higher burden on middle-income students.
William D. Adams, president, Colby College, writes: As the president of a small, selective liberal arts college, I'd like to say that I'm surprised by the recent news that Claremont McKenna College has been submitting false SAT scores for incoming freshmen. And I'd like to say that I believe that we can all rest assured that it's an aberration, an unseemly and unfortunate action of a single bad actor. Sadly, I can't in good faith say either of those things. We should have seen this coming.
After seeing enrollment decline for the first time in a decade, the University of Charleston, in West Virginia, slashed tuition by 22% for the upcoming school year hoping to entice more students. Tuition for new students will be $19,500 per year beginning in August - down from the current rate of $25,000. In an interview with CNNMoney, the university's president, Dr. Edwin Welch, explains why he took this unusual step and what the impact has been so far.
New figures show university endowments averaged total returns of more than 19% for the fiscal year ended last June, the second consecutive year of gains, according to the National Association of College and University Business Officers and Commonfund, a nonprofit asset manager. Yet schools say they can't cut tuition until their endowments have had more years of strong growth. "Dramatic changes won't come instantly," says David Warren, president of the National Association of Independent Colleges and Universities, which represents more than 1,000 U.S. private colleges.
Much has been made of how this modest bit of fraud might affect Claremont's rankings. But dropping the school from the list is about the worst penalty a ranker can inflict on a college. What about Claremont's accreditor? What about the Department of Education? Claremont must have reported inaccurate SAT numbers to them, too. Either of those agencies could conceivably inflict real penalties - such as suspension of accreditation, or of student aid - on a school that breaks the rules.
Alan Walker, president, Upper Iowa University, writes: How education is delivered is really important, because it has a huge influence on the costs of education to our students, as well as on recognizing that many cannot commit to the traditional four-year college structure. Largely because of the economic realities, the need to offer a structure that can still accomplish the student's educational goals at an affordable price is imperative. We've adopted an innovative structure with essentially four avenues leading to a degree.
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