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I'm rapidly beginning to believe that this is the smartest man in America.
Read the whole thing.
“Off The Wallâ€
Today’s comment off the wall comes from David Brugh.
“Mike - what's your take on the Feds calling technical schools "for-profit" and claiming these schools are predatory? I think - and my teenagers, for whom your mikeroweworks campaign has really resonated - think this is bullcrap.â€
Hi David - I think your kids have summed it up nicely! Many technical schools are in fact, “for profit.†But comparing a for-profit trade school to a for-profit, on-line university is a bit like confusing Robinson Caruso with Gilligan. True, they were both castaways, living on an island. But beyond that...
[....]
It’s hard to look at the universal push for college and not think of the universal push for home ownership. It began the same way - with a growing belief that buying a house was something more than a practical, financial decision. Somewhere along the line, home ownership started to feel like an expectation, and then a “right.†Our leaders began to talk about it at every turn. President Clinton kicked it off in ’94. He said, "More Americans should own their own homes, for reasons that go to the heart of what it means to harbor, to nourish, to expand the American Dream." A few years later, President Bush doubled down on that same sentiment. "We can put light where there's darkness, if we work together as a nation to encourage folks to own their own home."
Eventually, it became politically incorrect to even suggest that someone of modest means might be better off renting. So America’s leaders encouraged people with no collateral and little savings to assume a mortgage. Vast sums of money were spread around with little or no downpayment required. Institutions structured loans that no sane person would agree to, but because the underlying beliefs about owning a home were so powerful, sanity was overlooked. Of course, the whole thing was a house of cards, the taxpayers got stuck with the tab, and we’re still arguing over who’s to blame.
Is the student loan bubble really so different? The cost of a degree has risen 500% since 1984. Twice as fast as healthcare. And our leaders now tell us that a college education is some sort of “right.†Two months ago, the First Lady began promoting the Free Application for Federal Student Aid. With great passion. FAFSA is a portal of sorts. It leads students to nine separate programs for federal money. Mrs. Obama was addressing a room filled with high-schoolers and parents. She said to the students, “Completing this form is the single most important thing you can do for your future.†To the parents, she said, “Don’t leave any money on the table!†Moments later, The President concurred.
[....]
I’m fine tightening the standards, and I’m all for being smarter with federal funds as they apply to ALL accredited schools. But the real problem here is not the profitability or default rates at certain schools. The real problem is the fact that we continue to present college as the only viable alternative. When we sell a one-size-fits-all policy, we put our heads in the sand. We burden thousands of kids with unnecessary debt. And we blow more hot air into a bubble that’s already poised to burst. In other words, we’re still lending money we don’t have to kids who can’t pay it back, to educate them for jobs that no longer exist.
And that Dave - as your kids have wisely surmised...is bullcrap.
Today’s comment off the wall comes from David Brugh.
“Mike - what's your take on the Feds calling technical schools "for-profit" and claiming these schools are predatory? I think - and my teenagers, for whom your mikeroweworks campaign has really resonated - think this is bullcrap.â€
Hi David - I think your kids have summed it up nicely! Many technical schools are in fact, “for profit.†But comparing a for-profit trade school to a for-profit, on-line university is a bit like confusing Robinson Caruso with Gilligan. True, they were both castaways, living on an island. But beyond that...
[....]
It’s hard to look at the universal push for college and not think of the universal push for home ownership. It began the same way - with a growing belief that buying a house was something more than a practical, financial decision. Somewhere along the line, home ownership started to feel like an expectation, and then a “right.†Our leaders began to talk about it at every turn. President Clinton kicked it off in ’94. He said, "More Americans should own their own homes, for reasons that go to the heart of what it means to harbor, to nourish, to expand the American Dream." A few years later, President Bush doubled down on that same sentiment. "We can put light where there's darkness, if we work together as a nation to encourage folks to own their own home."
Eventually, it became politically incorrect to even suggest that someone of modest means might be better off renting. So America’s leaders encouraged people with no collateral and little savings to assume a mortgage. Vast sums of money were spread around with little or no downpayment required. Institutions structured loans that no sane person would agree to, but because the underlying beliefs about owning a home were so powerful, sanity was overlooked. Of course, the whole thing was a house of cards, the taxpayers got stuck with the tab, and we’re still arguing over who’s to blame.
Is the student loan bubble really so different? The cost of a degree has risen 500% since 1984. Twice as fast as healthcare. And our leaders now tell us that a college education is some sort of “right.†Two months ago, the First Lady began promoting the Free Application for Federal Student Aid. With great passion. FAFSA is a portal of sorts. It leads students to nine separate programs for federal money. Mrs. Obama was addressing a room filled with high-schoolers and parents. She said to the students, “Completing this form is the single most important thing you can do for your future.†To the parents, she said, “Don’t leave any money on the table!†Moments later, The President concurred.
[....]
I’m fine tightening the standards, and I’m all for being smarter with federal funds as they apply to ALL accredited schools. But the real problem here is not the profitability or default rates at certain schools. The real problem is the fact that we continue to present college as the only viable alternative. When we sell a one-size-fits-all policy, we put our heads in the sand. We burden thousands of kids with unnecessary debt. And we blow more hot air into a bubble that’s already poised to burst. In other words, we’re still lending money we don’t have to kids who can’t pay it back, to educate them for jobs that no longer exist.
And that Dave - as your kids have wisely surmised...is bullcrap.
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