Showing posts with label liberal arts degrees. Show all posts
Showing posts with label liberal arts degrees. Show all posts

Tuesday, April 3, 2018

Don't Go To College, Says Kurt Schlichter; And By God, He May Be Right!

Kurt Schlichter wrote a sprightly essay for Townhall last month, arguing vigorously that young people should just skip college. "What passes for 'education' today is nothing of the sort," Schlichter writes, "and what calls itself 'academia' is really just a venal trade guild packed with mediocrities desperately trying to keep fooling people into forking over $60,000 a year--usually obtained via ruinous borrowing that ties a financial anchor around the defrauded grads' necks for the rest of their lives."

Who can disagree? As Schlichter says, "much of academia's product is largely garbage," particularly in the liberal arts. People are now graduating with English degrees without having read Shakespeare, or without knowing how to spell Shakespeare, for that matter.

Of course higher education argues ad nauseam that a degree in liberal arts has some intrinsic worth. As John Kenneth Galbraith put it years ago:
Education is, most of all, for the enlargement and the enjoyment of life. It is education that opens the window for the individual on the pleasures of language, literature, art, music, the diversities and idiosyncrasies of the world scene. The well-educated over the years and centuries have never doubted their superior reward; it is greater educational opportunity that makes general and widespread this reward.
 But who believes that anymore? Administrators at small liberal arts colleges purr seductively about the value of a liberal education while they lay off history professors to beef up their MBA programs-where the real money is. And ever so earnestly, they defend inflated tuition prices even as they discount their tuition rates by half.

Really, why pay good money for a liberal arts degree? Why study American literature if professors cannot identify a canon of great American writers? Why read Faulkner, Hawthorne, Henry James, Melville, or Fitzgerald if the English faculty writes them all off as a bunch of dead, white, misogynistic and racist males?

And in truth, I would not advise a young person to invest much time in reading William Faulkner or Henry James. Or Steinbeck, for that matter, although The Grapes of Wrath speaks to me as a great book, probably because I am a descendant of Okies.  

In fact, American writers are still writing great books, maybe better books than the ones our old professors said we must read. T.C. Boyle's Tortilla Curtain is as searing a book as you will ever read about being a despised refugee in America, every bit as good as The Grapes of Wrath. And although The Great Gatsby may be the great American novel, Tom Wolf's Bonfire of the Vanities, a more contemporary tale, describes the emptiness of wealth just as movingly as Fitzgerald's classic.

Today, American society has become so diverse that it makes no sense to argue that there are great American novels that everyone should read or even an accepted narrative of American history that everyone should learn. I read Marquis James' Pulitzer Prize winning biography of Andrew Jackson and was convinced Jackson was a great American. But we may take Old Hickory off the $20 bill; and if we do, he won't be coming back.

I read Douglas Southall Freeman's multi-volume biography of Robert E. Lee and concluded that General Lee was a decent man. But New Orleans ripped Lee's statue of its pedestal at Lee's Circle, and Lee definitely won't be coming back. 

Maybe we should all construct our own personal canon of great books, our own personal narrative of history.  As a Catholic, for example, I consider the Philadelphia Bible Riots every bit as important as the so-called Boston Massacre, but few people would agree with me. And for me, the great coming-of-age novel is not Catcher in the Rye by that sleazebag J.D. Salinger, but Richard Bradford's Red Sky at Morning, a book about being young in northern New Mexico during World War II.

But if we are all free to construct our own canon of literature and our own narrative of history, which liberal arts professors are basically arguing we should do, then why the hell should we pay sixty grand a year for our kids to attend some moldy liberal arts college in the upper Midwest?

Because the colleges need your money, I suppose. And if you don't have sixty grand, don't worry. The government is quite willing to loan it to you.

References

Kurt Schlichter. Don't Go To College, Townhall, March 22, 2018.



Monday, March 6, 2017

Newman University and Paula Maxine Edwards: Does a college have a moral duty to warn students that some of its programs are not financially worthwhile?

Paula Edwards attended Newman University to become a school teacher. 

Paula Edwards, a single mother with two children, obtained a bachelor's degree in education from Newman University, a small Catholic college located in Wichita, Kansas. Newman's tuition rates are higher than public universities in Kansas, but Edwards chose Newman because she could take most of her classes in the evening while continuing to work as a paralegal.

Edward's education degree qualified her for a job in education, and in the fall of 2016 she was in her fourth year as an elementary school teacher in Wellington, Kansas. Edwards' teaching job does not pay well; she makes only $35,300 a year. Moreover, unless she obtains more education, Edwards' salary will not go up much. In fact, her salary is capped at $35,700--only $400 a year more than she is making now.

Most people who choose the teaching profession are attracted by the intangible rewards of educating children; they realize they will never become rich. Unfortunately, Edwards chose to get her teacher training at an expensive college, and she had to borrow a lot of money to get her degree. In fact, in 2015, when she filed for bankruptcy, Edwards owed $151,000 in student loans.

Obviously, there is no plausible scenario whereby Edwards can pay back $151,000 on a salary of $35,000. In fact, she seems like an ideal candidate for bankruptcy.  But when Edwards filed for bankruptcy in 2015, she was confronted by a major obstacle. Under Section 523(a)(8) of the Bankruptcy Code, debtors cannot discharge their student loans in bankruptcy unless they can show undue hardship. And this is very hard to do.

Remarkably, Edwards won something of a victory in a Kansas bankruptcy court. Although the bankruptcy judge refused to relieve her of $72,000 in federal student loans, the judge did discharge her private student loans--about $58,000.  Essentially, the judge forced Edwards to sign up for an income-driven repayment plan (IDR) for her federal loans with monthly payments set at only $21 a month based on her current salary. If she makes regular payments for 20 years, the balance of her loan will be forgiven.

But here's the problem with  Edwards' IDR--assuming she enrolls in the plan the government offered. Interest is accruing on the $72,000 Edwards owes on her student loans, and $21 a month doesn't begin to pay that interest. All unpaid interest will be capitalized and added to her loan balance.

Given her likely income trajectory as a Kansas school teacher, Edwards will probably owe twice what she borrowed when her 20-year repayment plan comes to an end in 2036.

But it gets worse. The federal government considers a forgiven loan as taxable income. Thus, Edwards could be forced to pay taxes on $150,000 in so-called "income," because that is probably the amount she will owe when her 20-year repayment plan is concluded.

If Edwards were indebted for any reason other than her student loans, she could shed her debts in bankruptcy and get the "fresh start" that bankruptcy is intended to provide. But the "undue hardship" rule in the Bankruptcy Code has probably forced her into a repayment plan that will stretch over the majority of her working life. She will be 56 when her payment obligations stop and she will face a whopping tax bill.

Newman College bears some responsibility for Edwards' plight.

Tuition and fees at Newman amount to almost $28,000 a year; and that does not include books and living expenses. No wonder Edwards owes $151,000 in student loans.

Does Newman University bear any responsibility for what happened to Edwards? I think it does. Surely Newman officials should have warned Edwards that it would not work out for her financially if she borrowed money to get a Newman degree in order to become a school teacher.

Nicholas Eberstadt, writing for zerohedge.com, reported recently that a lot of graduates believe their college studies were not worthwhile. People who graduated in liberal arts or social studies were particularly dissatisfied. In a survey of 1800 graduates, more than two thirds of psychology graduates said their degrees were "not worth it."  And almost half the people who graduated in fine arts, history, geography, and politics expressed the same view.

Eberstadt's report did not include any data for people who graduate in the field of education, but I feel sure a great many people who chose to get education degrees from expensive private colleges regret their decision.  More than 20 years after getting a doctorate in education policy from Harvard, I can assure you that my Harvard experience was extravagantly overpriced.

Eberstadt argues persuasively that the federal government has fueled the demand for postsecondary education by offering students cheap money to go to college. "Loaning these funds at below market interest rates and backing up these risky loans has led to massive malinvestment . . ." Eberstadt wrote.

Eberstadt is right. And Paula Edwards, who borrowed more than $100,000 in good faith to attend an expensive private college in order to become an elementary-school teacher, is just one among millions of casualties of our disastrous federal loan program.

Harvard Graduate School of Education: an elite school for suckers


References

Tyler Durden. The Most (And Least) Worthwhile Degrees. zerohedge.com (March 5, 2017).

Edwards v. Navient Solutions, Inc., 561 B.R. 848 (D. Kan. 2016).