LSU buys out football coach's contract: What's $17 million among friends?

 A few days ago, LSU announced it is getting rid of Ed  Orgeron, LSU's football coach.  Orgeron coached LSU's football team to a national championship in 2019, but what has he done for us lately?

What will it cost to buy out Orgeron's contract? Almost $17 million. Orgeron gets the cash in installments, but he gets the first half a million in December.

LSU will also buy out several members of Orgeron's coaching staff. What will that cost? Another $9.5 million.

And the university is still paying for some earlier buyouts. In 2020, LSU bought out defensive coordinator Bo Pelini's contract. That cost LSU $4 million. 

It also bought out a passing game coordinator's contract. But that was chump change. It only cost LSU $1 million.

Money, money, money. LSU renovated the football team's locker room in 2019.  That cost a cool $28 million. Each player gets his own sleeping space in case he gets tired while studying for exams.

College sports is big business. Everyone understands that. But does it have anything to do with the students?

Apparently not. Every time LSU's athletic department spends a ton of money, its PR people remind us that LSU's football program is a moneymaker and that students don't have to pay a dime to support it.

I'm not sure I believe that line. LSU football wasn't a moneymaker in 2020 when the COVID pandemic virtually shut down college sports.

In any event, students probably aren't paying attention. On any given day, students walk across the LSU campus with their eyes fixated on their cellphones. Many don't bother to use the crosswalks. They just meander across the streets anywhere they choose.

Just a few days ago,  two cars collided on Highland Avenue, which runs right through campus. As you can see from the photo, one of the cars flipped over and was totaled.

The speed limit on Highland Road is 30 miles an hour. Maybe LSU should spend less money on football coaches and devote more resources to traffic control.

Look both ways before you cross the street on the LSU campus.

There are no cold guns: Alec Baldwin shoulda been an Oklahoma Boy Scout

 I learned about gun safety from the Boy Scouts. Every year my Scout troop went to Summer Camp at Camp George Thomas, and we kids spent one hour every day on the rifle range.

Our gun instructor was a grizzled Army sergeant on active duty at Fort Sill, and he was all business. He assigned each Scout a  bolt-action rifle and a punchboard that held ten little bullets--.22 shorts. 

Sarge gave us strict instructions to always point our rifles down-range and not shoot until he gave the order. 

And then he would boom out these majestic words:

"Ready on the right? Ready on the left? Ready on the firing line. Gentlemen, you may commence firing."

Gentlemen? He called us gentlemen! Just like we were grownups!

Our rifles could only hold one bullet--the ammo magazines had been removed. We all fired one time, ejected the tiny shell cases from our rifles, and then inserted the shell cases in the pegboards the sergeant had given us.

At the end of each exercise, the sergeant collected the pegboards and made sure no shell casing was missing. Thus, it was impossible for a bullet to go astray.

I don't recall being hectored by anyone about gun safety when I was a Scout.  We were told the two cardinal rules of gun safety and expected to follow them.

And what were those rules? 1) Every gun is loaded; 2) Never point a gun at anyone you don't intend to shoot.  That's all we needed to know to avoid a gun accident.

Poor Alec Baldwin killed a woman on a movie set a few days ago. Believing his weapon was a prop gun that shot blanks, Baldwin pulled the trigger. Unfortunately, the gun was loaded with five live rounds.

I do not blame Mr. Baldwin for this tragedy, and I hope no criminal charges will be filed against him. Someone put five lethal bullets in the pistol that he fired, and someone shouted "cold gun" just before the accident--an affirmation that the gun was safe.

Nevertheless, if Alec Baldwin had been an Oklahoma Boy Scout when he was a child, I think he would have assumed the gun he was given on that New Mexico movie set was loaded with live rounds. I think he would have checked the gun himself.

The Boy Scouts have fallen on hard times. The Scouts took bankruptcy recently to get out from under a deluge of sexual abuse lawsuits.  They changed their name. They're not Boy Scouts anymore; they're just Scouts.  Girls can be Scouts too.

And that's a good thing.

But the Boy Scouts of my childhood was a noble organization. I learned to build a fire, sharpen a knife, and cook a meal over a campfire. And I learned the basic rules of gun safety.

America now has almost 400 million guns in private hands. Since there are only 330 million people in the U.S., there's a gun for everybody--even toddlers and infants.

Unfortunately, most of these gun owners weren't Boy Scouts in Oklahoma when they were children. That's a shame.

"Gentlemen, you may commence firing."

We're Number 1! LSU signs deal with Caesars Sportsbook to promote sports betting

 Is it just me, or have Louisiana State University's administrators lost their friggin' minds?

Last month, LSU announced it's teaming up with Caesars Sportsbook, a big-time gambling company, to promote sports betting.

Under the deal's terms, Caesars will get the naming rights to the Skyline Club at Tiger Stadium and can put its signs up in the football stadium, the basketball arena, and the baseball field. 

Will people be allowed to bet on sports inside LSU's football stadium? We don't know yet, but it's "one of many options being considered," an LSU official revealed.

Scott Woodward, LSU's athletic director, assures us that the gambling deal was brokered with the fans in mind: "LSU has always taken pride in providing fans with unique, innovative, and world-class experiences, and our new partnership with Caesars Entertainment will do just that," Woodward explained.

What lovely bullshit! But that's what we would expect from a guy who makes $1.2 million a year.

What about the students? Should a public university promote sports betting to impressionable youngsters?

Not to worry. Caesars promises not to market to students under the age of 21 or “highlight gaming offers inside campus facilities.”

That's a relief!

And, of course, some of the revenue from this gambling deal will go to student scholarships, which makes everything OK.

What's next? Will LSU open a brothel in the Skyline Club? Now that would be a "world-class" experience. Fans could drink, gamble, and fornicate to take their minds off LSU's abysmal football season.

And that would be fine because some of the prostitution revenue would surely be reserved for student scholarships.

Not that it's relevant, but LSU dropped 19 spots in the latest survey of top universities that U.S. News and World Report released last month.  LSU now ranks next to last among colleges in the Southeastern Conference. 

Who cares? LSU is the first SEC school to promote sports gambling, and that makes it number one in my book.

Bummer! You can't bet on LSU football in the Skyline Club.

Take this student loan and shove it: Will student debtors start making payments on their college loans when the government's payment holiday ends?

When we go on vacation, most of us sleep late, basking in the luxury of rising in the morning whenever we wish.

 Then our vacation ends, and we have to set our alarm clock again. And we find it damned difficult to pop out of bed at 6 AM to get to work on time.

 Something like that will happen when the U.S. Department of Education ends its pause on student loan payments. Student debtors enjoyed a grace period on their loan obligations during the COVID pandemic. They could skip their monthly student loan payments without penalty and spend that extra cash on other things—a new car, maybe.

 Millions of student borrowers benefited from this loan-payment holiday, but nobody knows how many will start making monthly payments again when the holiday comes to an end in February.

According to Politico, Education Department officials have instructed loan services to create a "safety net" for borrowers for the first three months after payment obligations begin:

 Borrowers who miss a payment during the initial 90-day period will not take a hit on their credit reports. Those borrowers will instead be automatically placed in a forbearance and be still considered current on their loans.

Student borrowers will appreciate the safety net, but will they start making their monthly loan payments again when the government's loan-payment pause finally ends?

Even before the pandemic, the default rate on student loans was considerably higher than the default rate on credit cards and car loans.

 And this pattern makes sense. Overburdened debtors who stop making car payments lose their cars. If they quit paying on their credit card balances, their cards get canceled.

 But if student-loan debtors stop making payments on their student loans, nothing happens--at least not immediately. 

 I predict that student loan defaults will spike upward this spring. Millions of student-loan debtors got permission to stop making payments in the spring of 2020, and they will find it challenging to start writing those monthly payments again, even when they are legally obligated to do so. 

To paraphrase a great country singer, I think many college debtors will take their cue from Johnny Paycheck and tell the Department of Education to take their student loans and shove 'em.

Vista College chain closes its campuses and files for bankruptcy in Delaware: Bankruptcy relief for me but not for thee

 Vista College, a chain of for-profit college campuses, closed and went bankrupt a few days ago.  Most Vista campuses are in Texas, but the chain filed its bankruptcy proceedings in Delaware.

Who owns Vista College?

 Education  Futures Group (EFG), a Chicago-based private equity firm, holds a majority interest.  Jim Tolbert, Vista's CEO, owns 16.7 percent.  

EFG's website describes Vista College as "one of the most popular and recognized institutions of higher education in the south-central United States."  Yup. Right up there with Rice, Tulane, and SMU.

Apparently, however, not everyone agrees with EFG's self puffery.  A Texas law firm filed a class-action suit against Vista seeking damages on behalf of approximately 3,000 former Vista students.

Will students get any money out of Vista? I kinda doubt it. I'm sure EFG's lawyers know how to structure a bankruptcy action so that none of Vista's owners will miss any meals.

Vista College is the latest in a string of for-profit schools to go belly up in recent years. As far as I'm concerned, the more for-profits that close, the better.

America doesn't really need a for-profit college sector. We already have a surplus of public and non-profit institutions. Vista's headquarters is in Richardson, Texas, a suburb of Dallas. The Dallas metropolitan area has 38 colleges. Vista has a campus in Beaumont, Texas, home of Lamar University. It also has a campus in El Paso, home of the University of Texas at El Paso, and a campus in College Station, home of Texas A & M.

The for-profits built a niche based on the pitch that they offered online courses for working adults, but that line of patter doesn't work anymore. Public institutions have invested heavily in online learning. Students can now get a bachelor's degree, a master's degree, and even a doctoral degree from a public university without ever going on campus. So why would anyone want to enroll at a for-profit college, which will likely cost more than a similar public school?

The for-profits also tout the fact they offer vocational training, which the public universities don't provide. But publicly funded community colleges now offer vocational and technical programs, and community colleges are cheaper than for-profit schools.

Delaware is a friendly venue for corporations, and I feel sure Vista and its owners will zip right through bankruptcy.  And I'm OK with that.

But many of Vista's former students will find themselves with a mountain of student-loan debt and no credential.  Can they file for bankruptcy in Delaware and get the same cozy treatment that bankrupt corporations get?

No, they cannot. Texas students can file an adversary proceeding in a Texas bankruptcy court in an effort to get their federal student loans discharged.

But lawyers for the Department of Education or one of its debt-collection agencies will show up to fight a bankruptcy discharge of student debt.

In other words, the bankruptcy process works better for for-profit colleges than it does for their students. For a for-profit college, bankruptcy is relatively painless. But a for-profit college student will find it virtually impossible to get free of student loans that were taken out to attend a for-profit college--even one that is owned by a private equity firm and goes bust in mid-semester.

Baylor University Loses Its Way: Low-Income Parents Take Out Loans So Their Kids Can Attend a Pricey School

Baylor University, a Baptist institution located in Waco, Texas, is a well-respected school. Over the years, it has risen steadily in the college ratings and now ranks among the top 100 American universities.

But Baylor is expensive--tuition and fees are about $50,000 a year. Low-income students can take out federal loans, but these loans are capped and do not cover the total cost of going to Baylor. 

So--according to the Wall Street Journal--Baylor has encouraged low-income families to take out Parent Plus loans. In fact, almost half the families that take out these loans are poor.

From Baylor's perspective, the Parent Plus program is a money tree. There is no cap on these loans, and Baylor gets its money upfront. If parents can't pay off these loans, that's their problem. 

As the Wall Street Journal revealed, many Baylor parents aren't paying back their Parent Plus loans. Only 28 percent paid down any of their loans after two years in repayment. In 2018 and 2019, Baylor parents collectively owed 74 percent of what they borrowed ten years after beginning repayment.

Baylor says it does not pressure families to take out Parent Plus loans. In a written statement, a Baylor spokesman said, "We have never strong-armed students to [make] a decision for/against Baylor, as we respect the significance of making a college choice." What the hell does that mean?

Linda Livingstone, Baylor's president, admits that Parent Plus loans are a problem. "My heart goes out to families that are in that situation," she said.  "We are working very, very hard to ensure that we don't see that so much going forward."

I'm not knocking Baylor. It's a fine school. But the fact remains that Baylor and many other universities are relying more and more on Parent Plus loans for their revenue. 

These loans bear a relatively high interest rate--6.28 percent, and they can be pretty large. Parents of 2018 and 2019 Baylor graduates borrowed a median amount of $59,000.  The Wall Street Journal reported that a school bus driver took out $57,000 in Parent Plus loans so her daughter could attend Baylor.

Low-income parents jeopardize their own financial security when they take out Parent Plus loans to finance their children's college education.  And Parent Plus loans, like student loans their children take out, are almost impossible to discharge in bankruptcy.

That's not right. Congress should shut down the Parent Plus program. 

Baylor president Linda Livingstone and spouse:
"My heart goes out to families that are in that situation."

No reply: What to do when the corporate office won't respond to your complaint

This happened once before

When I cam to your door

No reply

They said it wasn't you

But I saw you peep through your window

                                                                                                                        The Beatles 

Have you ever tried to resolve a dispute with a corporate entity: a bank, a car rental agency, a credit card company? How did it turn out? Most times--I'm guessing--you just gave up without getting your problem solved.

A couple of years ago, Chase Bank flagged a fraudulent transfer out of my checking account.  Three thousand dollars of my money slipped into the account of a stranger through Chase's Zelle digital payment network.

Chase admitted that the transfer was unauthorized and that I was not at fault. But it refused to return my money. The word came down from on high: Once money is transferred through Zelle, it cannot be recovered.

My wife and I happened to be Chase Private Clients at the time because we had some retirement savings with Chase. Made no difference. 

I emailed the Chase broker, who was supposedly handling my money. He called me on the phone and asked me not to communicate with him by email because it could cause him problems with the SEC.

I made numerous phone calls to Chase representatives, and I spoke to a different person every time I called. No satisfaction.

Then I switched tactics. I made a phone call to the Consumer Financial Protection Bureau. To my surprise, someone answered my phone, took my complaint, and assured me that Chase would be notified that same day.

Then I filed a complaint with the Federal Banking Commission and the Louisiana Banking Commission. I also discovered I could file a lawsuit against Chase in a Louisiana small claims court. The cost? Only $25, and I could file it electronically from my home computer.

I was typing up my lawsuit when a Chase representative from "Corporate" called.  His voice sounded like James Earl Jones--in other words--the voice of God.

"Mr. Fossey," he intoned in a deep, stentorian voice,  "we are going to return your money."

We all know that big, multinational corporations have insulated themselves from their customers. You simply can't get through to someone who has the authority to fix your problem.

Here's what you need to do:

1) Be dignified. Don't curse, yell, or threaten the human-robot you talk with on the phone. 

2) Be patient and persistent and keep records of your communications.

3) File complaints with any federal or state agency with regulatory authority over the corporation that is stonewalling you.

4) As a last resort, sue the offending party in small claims court. 

I haven't actually had to file a small claims suit against a corporate entity. So far, I have gotten my disputes settled through persistence. But I think it can be a handy tool for confronting a recalcitrant corporation.

You can represent yourself in small claims court. You don't need a lawyer. And in Louisiana, you can sue a corporation doing business in the state through the Secretary of State's Office. Your state probably has a similar process for getting service on corporations.

Our soulless corporations get more greedy, more arrogant, and more indifferent to their customers with each passing day. If you get stiffed by one, you should fight back.

"Mr. Fossey, thou shall get thy money back."