Tag Archives: Crisis

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Higher Education in America: A Way Forward

To change the conversation, colleges must actively and openly address society's concerns

It is becoming increasingly difficult to pick up a newspaper, open a magazine, or walk into a bookstore without being confronted with yet another screed about the problems of higher education in America, each one seemingly more shrill than the last. With book titles such as Academically Adrift, or American Higher Education in Crisis?, or Why Does College Cost So Much?, it is no wonder that the parents of a prospective college student are confused and frustrated as they enter the season of campus visitations.

By way of welcoming the start of college this fall, The New York Times recently devoted its entire Sunday magazine (Sept. 13) to a series of articles collectively entitled Collegeland. If anyone thought it was safe to go back into the academic waters, these articles will frighten them back to the beach before they get their ankles wet.

There is no question that problems abound in the world of American higher education; they are serious, and they need to be addressed. But the good news is that genuine efforts are under way at many colleges and universities to implement solutions to these problems. Not every college is deaf to the voices of criticism. Consider three of the most vexing concerns:

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Is the Student Loan Crisis Really a Crisis?

Or have hyperbole and hysteria created a misperception?

For the past 18 months, the media (and, subsequently, the politicians) have been focused on the rising tide of student debt. Two issues have attracted particular attention: first, the fact that total student debt has (a) exceeded $1 trillion, or, expressed alternatively, (b) exceeded the total of credit card debt; and second, the fact that some individuals have accumulated more than $100,000 in student debt.

News stories have become increasingly frantic. For example:

  • In a March 9 editorial, The New York Times cited a federal analysis from 2009 that “found that 10 percent of borrowers with private loans were spending more than 25 percent of their incomes in monthly payments.” But of the 60 percent of students who borrow, only about one-third (20 percent) have private loans – so the 10 percent of private borrowers who are spending more than 25 percent of their incomes in loan payments represent just 2 percent of all graduates. Those large payments are a huge problem – but only for a very small number of individuals.
     
  • A Bloomberg.com post on May 7 was headlined “Bankers Warn Fed of Farm, Student Loan Bubbles Echoing Subprime.” That’s a pretty scary headline – but the article conflates a meeting of the Federal Advisory Council on February 8, 2013, relating to farmland prices, where the term “bubble” was in fact used, with a meeting of the same group a year earlier (February 3, 2012) relating to student loan debt, where “bubble” was not used.