Tag: Education Funding

Cartoons Of The Week

There’s an abundance of good cartoons this week. But before we get to them, let’s spend a few moments on the multi-year disaster in the US Department of Education (DOE). From NPR:

“…the US Department of Education is going to review the loan histories of most federal student loan borrowers….And the reason, in the department’s own words, is to, quote, “remedy years of administrative failures that effectively denied the promise of loan forgiveness to certain borrowers.” This review is expected to trigger loan forgiveness for tens of thousands of people and bring millions more closer to having their loans erased.”

More: (emphasis by Wrongo)

“For years, income-driven repayment was badly mismanaged by Ed and its loan servicers, making it really hard for borrowers to access. And so hardly anyone has qualified for that forgiveness.”

Finally: (brackets by Wrongo)

“Our investigation in April showed some [loan] servicers weren’t keeping track of how close borrowers were to loan forgiveness. Also, some borrowers weren’t getting credit for all their payments, or they were even losing months of credit when they were transferred from one servicer to another. After our reporting came out, members of Congress called for an investigation. And later that month in April, the department announced this big retroactive overhaul that’s now getting started.”

This amounts to $5 billion in forgiveness for 74,000 borrowers. When people talk about how the government is terrible, they should be talking about the decades of mismanagement at US DOE. On to cartoons.

The destruction of Gaza won’t win the US any friends in the Middle East:

Biden declares the Houthis terrorists:

GOP intransigence on funding for Ukraine continues:

Iowa win means Republicans fall in behind Trump:

The GOP still singing the same old tune:

S&P hits record high, but Biden’s still too old:

Baby it’s cold outside:

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The Coming Disaster for America’s Colleges

The Daily Escape:

New Navajo Falls, Supai, AZ – 2020 photo by wanderin-wally. These falls were formed by a flash flood in 2008.

Colleges and universities are scrambling to figure out what to do this fall if their students can’t return to campus. Some students are reconsidering going to college. If they don’t return, what will happen to schools that are tuition-dependent?

Even before the pandemic hit, student enrollment for the spring 2020 had fallen for the ninth year in a row. Wolf Richter reports that the number of post-secondary students fell by more than 83,800 students (-.05%) to 17.18 million students. Worse, compared to the spring semester in 2011, enrollment is down by 10.6%, or 2.03 million students. Here’s Wolf’s chart:

Demo Memo says that college enrollment in the United States peaked in 2010 at just over 21 million, and as the chart shows, it has drifted downward ever since. For 2020s spring semester enrollment declined in all sectors compared to spring 2019:

  • Public two-year: -2.3%
  • Private for-profit four-year: -1.9%
  • Private nonprofit four-year: -0.7%
  • Public four-year: -0.6%

Public two-year schools have seen a 25% drop in enrollments since 2011, while enrollment in private for-profit colleges is down 55.2% for the same period.  The drop in for-profit enrollment accounts for 44% of the total drop in enrollment in all institutions since 2011.

Nathan Grawe says in the Harvard Business Review that demographics will not be a friend to higher education in the future:

“….since the onset of the Great Recession in 2008, the total fertility rate…has fallen by almost 20%….Tracing forward 18 years from the 2008 recession, we can anticipate a sizable decline in prospective college students beginning in 2026.”

He says that two-year colleges and non-selective four-year schools can expect to see falling enrollments, because these schools serve a demographically representative subset of students, so they will face the inevitable demographic arithmetic. This will be true particularly in the Northeast and Midwest, where declines are already well underway.

This will lead to price competition, which is precisely what Scott Galloway, professor at NYU’s Stern business school said on CNN recently. Galloway points out that schools in the top tier (Like Stanford, Oxford, Harvard and MIT) have deep waiting lists, and therefore will not be damaged by a smaller pool of college-age students. This means that the top-20 universities globally are going to become even stronger, as will universities between numbers 20 to 50.

At the other limit, for the Tier III schools who are tuition-dependent and who have no wait list, there will be carnage. The Upshot wrote about a college consultancy called Edmit that follows financial solvency of colleges:

“Edmit examined financial trends at 937 private universities and added a conservative estimate of the Covid-19 impact: tuition losses of 10% in 2020 and 20% in 2021, a 20% decline in endowment earnings, and an offsetting 10% reduction in spending on salaries.”

Their work shows that the number of colleges ranked with “Low” financial health (defined as being on track to run out of money within six years) was 345, more than one-third of all private colleges studied.

Beyond demographics, the fundamental question is today’s perceived value of a college degree. An MIT degree may be worth $250k in tuition, but is a Boston College degree worth that?

Since 1998, overall inflation is up 54%, while college education costs are up 150%. There’s now more student loan debt than credit card debt. Former students are in the hole for $2 trillion in student loan debt, a lot of which may eventually need to be written off. And the average price of a textbook has increased 812% in the last 30 years.

Galloway says that higher education has raised its prices at a faster rate than the health care industry! This, for a product/experience that is substantially unchanged in the past four decades.

The four-year public schools will survive, because they provide a better price-to-value proposition than the mid-tier private schools.

Dozens, maybe hundreds, of private middle tier schools will close, or partner with other schools, or possibly with businesses. They face huge price pressure, with many competitive alternatives available to the dwindling pool of students.

Many of the third-tier private, tuition-driven schools will simply shut down, continuing a trend that is already under way.

Change is sometimes the only way to make a service more efficient and affordable. The physical store is on the verge of disappearing. The physical office is disappearing. Similarly, colleges and universities need to understand the economic logic they’re facing, or else Mr. Market will educate them.

The questions to wrestle with are:

  • Is the statement “everyone should/needs to go to college” still true?
  • Does higher education still require a physical presence to be effective?

If the paradigm changes, what should it change to?

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Public Schools Are Hiring Immigrants As Teachers

The Daily Escape:

Another view of spring flowers in the Tejon Pass, CA – May, 2018 photo by Dianne Erskine-Hellrigel

While it appears that the teacher walkout in Arizona is over, red state education cuts are bad enough that teaching jobs are now being outsourced. The NYT reports that many US schools are filling low-paying teaching jobs with immigrants:

Among the latest states hit by the protests is Arizona, where teacher pay is more than $10,000 below the national average of $59,000 per year. The Pendergast Elementary School District…has recruited more than 50 teachers from the Philippines since 2015. They hold J-1 visas, which allow them to work temporarily in the United States, like au pairs or camp counselors, but offer no path to citizenship.

The NYT reports that according to the State Department, more than 2,800 foreign teachers arrived in America last year through the J-1 visa program, up 233% from about 1,200 who landed here in 2010.

Are public school teachers a new class of migrant workers in America? Is teaching becoming another category of “jobs Americans won’t do” in the Trump era?

Arizona has a reported shortage of 2000 teachers state-wide. This is a direct result of Arizona’s low teacher salaries, (43rd in the nation), and poor funding for public education. More from the NYT:

According to the State Department, 183 Arizona teachers were granted new J-1 visas last year, up from 17 in 2010.

Trump opposes immigration because he says it takes away American jobs. Yet, here we have an immigration program designed precisely to take away American jobs, and it is growing, because there is no alternative but higher taxes, which is not an acceptable solution to Republicans.

Poor school funding and low teacher salaries are a direct result of tax cuts that then require government expense cuts. Local governments can’t engage in deficit spending for very long without ruining their bond rating, so when tax revenues go down, salaries are frozen, maintenance is deferred, and expenses are slashed.

Wrongo’s home town has this very issue in front of us. Our student population has declined by about 11% over the past few years, but the town’s school budget has steadily increased, despite the declining student census. When the budget goes to voters in a few days, it is likely to be voted down, because so few people are willing to see their taxes increased.

This should be a wake-up call to all of us. Tax cuts do not create revenue growth in our towns, states or the country, regardless of what the faux economists say about trickle-down economics.

There is no “teacher shortage” in America. Do we say there is a shortage of Corvettes because we’ll only pay the dealer $25k for a brand new one? We are seeing across many job categories that fewer skilled individuals are willing to work for the low pay offered in both the private and the public sector.

It seems like a simple concept. The people who you entrust your children to for learning and personal growth should earn an adequate wage, and be able to remain members of the middle class.

If we denigrate a profession enough so that people are wary of investing their time and money to get an education and meet the needs of the job, we will have a teacher shortage. Hopefully, this won’t be the case and aspiring teachers continue to come forward with a willingness to learn the profession – click here to learn about online courses for teachers if you want to pursue this as a career. It would be a travesty if we put off our nation’s young people from seriously looking into teaching as an option for a career.

If we then hire foreigners who are willing to do the work for peanuts, we will complete the job of making teaching a low income profession.

This is a plan designed by the right and their hedge fund billionaire buddies to privatize and ultimately, break public education.

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Monday Wake Up Call – April 16, 2018

The Daily Escape:

Dumbo, NYC – August 2017 photo by Kelly Kopp

In Republican-land, it’s not as if we don’t have plenty of awful things to process. And, just when you think that it can’t be coarser, or darker, it is! Last week, the Republican governor of Kentucky, Matt Bevin, vetoed the state budget, tax reform, and pension reform bills. Bevin scrapped all three bills in their entirety because he wanted significantly deeper budget cuts, especially to education and infrastructure. He sent the bills back, and announced that unless his cuts were passed, he would call a special session and keep it open until he got his way.

But, the day before Kentucky’s state legislature overrode all three vetoes, Bevin, who has opposed Kentucky teachers’ rallies for pension protection and public education funding since the rallies started, told reporters this:

I guarantee you somewhere in Kentucky today a child was sexually assaulted that was left at home because there was nobody there to watch them….I guarantee you somewhere today, a child was physically harmed or ingested poison because they were home alone because a single parent didn’t have enough money to take care of them.

Is this state-of-the-art 2018 Republican messaging? A Republican governor is saying children are safer in the care of government workers than with their own families. If Bevin is correct, summer vacation must be a season of child carnage in Kentucky. Maybe Kentucky schools should be open 24/7.

Bevin subsequently “apologized” to those who may have been offended.

A larger question: What will it take to eliminate the societal myth that teachers are co-parents? Teachers have huge responsibilities for the children they teach, and most live up to this, but they’re not the kids’ parents. They’re not equipped to co-parent.

Most towns fail to fully equip them to be educators, much less co-parents. And we couldn’t (and shouldn’t) pay them enough to assume that responsibility.

Bevin’s comments are unusual and despicable, but other politicians talk about teachers in similar ways. Consider that Oklahoma’s Republican governor Mary Fallin told CBS News that teachers striking for a salary increase are like “a teenager wanting a better car”.

Newsweek reported that Fallin also suggested that the anti-fascist group Antifa was involved in the ongoing teachers’ protests, claiming it was among the “outside groups” that were demonstrating alongside educators. There was no evidence that Antifa was anywhere near the teachers who were demonstrating.

Governors Fallin and Bevan had a golden opportunity to demonstrate their commitment to educating the children of their states. They could have made it clear that education would be a priority for as long as they remained governors.

But like most Republicans, they feel tax cuts are more important than kids. And in the typically arrogant and dismissive tone Republicans tend to assume, they decided to belittle teachers who are demanding they be fairly compensated for the important work they do.

Fully funding education is a no-win situation for Republicans. They don’t want to fund education because they know that ultimately, it works against their best interests. Their intransigence means they’re facing an angry, empowered, and unified group even in red states that have weak unions. The teachers now fully understand that they have political power, and they intend to exercise it.

Teachers don’t take the job expecting to get rich, but they’re certainly within their rights to expect fair compensation for their work. They’re also right to expect each state to adequately fund public education.

So, it’s time for Republicans to wake up! There really could be a blue wave in the voting booth this fall if red state politicians fail to support public education, despite whatever spew Betsy DeVos is spraying this month. To help them wake up, here is “High School Never Ends” by Bowling For Soup, from their 2006 album, “The Great Burrito Extortion Case”:

Sample Lyrics:

The whole damned world is just as obsessed
With who’s the best dressed and who’s having sex
Who’s got the money, who gets the honeys
Who’s kinda cute and who’s just a mess

And I still don’t have the right look
And I still have the same three friends
And I’m pretty much the same as I was back then
High school never ends
High school never ends
High school never ends
And here we go again

Those who read the Wrongologist in email can view the video here.

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The Lyin’ Game

“If a nation expects to be ignorant and free in a state of civilization, it expects what never was, and never will be.” – Thomas Jefferson

We received quite a few emails about the column “Lie to Me – It’s a Post-Truth World.” In it, Wrongo called for a means of rebutting lies as they emerge and crawl across our political landscape. Citizens who otherwise lead commonsensical lives cannot seem to hold on to facts when in a political argument.

Let’s start by taking a closer look at how things work in the Lyin’ Game. Charlie Pierce’s 2009 book, Idiot America, lays out what he calls the Three Great Premises that explain how lies take the form of truth:

1. Any theory is valid if it sells books, soaks up ratings, or moves units.
2. Anything can be true if someone says it loudly enough.
3. Fact is that which enough people believe. Truth is measured by how fervently they believe it.

It seems that the 2016 election is confirmation of Dr. Pierce’s diagnosis. The prognosis is not necessarily fatal, though left untreated, it surely could be. Here is a quote from his book:

In the new media age, everybody is a historian, or a scientist, or a preacher, or a sage. And if everyone is an expert, then nobody is, and the worst thing you can be in a society where everybody is an expert is, well, an actual expert.

So, it’s not just that we are fact free, it’s that we, the people, are unable or unwilling to learn the facts.

Susan Jacoby also wrote about the risks of a fact-free society about the same time as Pierce, the 2008 presidential election. In her book, “The Age of Unreason,” she made a great point about FDR and his relationship with citizens and the truth. In FDR’s radio fireside chats, he would ask the people listening out there to spread a map of the world out in front of them so that as he talked about the battles that were going on, they would understand what he was saying about the places, the geography, and the strategy of what was happening. Doris Kearns Goodwin said in a lecture at Kansas State University that one of her favorite fireside chats was the “map speech,” delivered in February, 1942. Millions of Americans went out and bought maps, and they sat by the radio and followed what FDR was talking about.

And FDR wasn’t on the radio every week as presidents are today. He only delivered two or three of these fireside chats a year, deliberately holding himself back for the moment when the country needed to hear from their president. He understood something that we have lost, that less can be more.

In 2009, Pierce offered a prescription about how to get out of the “perception is reality” paradigm: (emphasis by the Wrongologist)

I’ve given that a lot of thought and the best answer I can give is that we, as citizens, simply have to do better at self-government. We have to distinguish between entertainment and information. Our powers of discernment have to be sharpened…Any journalist who accepts “perception is reality” as axiomatic is committing professional malpractice. Our job is to hammer the reality home until the perception conforms to it.

When our journalists accept “perception is fact” there is no hope for truth.

Jacoby says that the spread of ignorance and the acceptance of non-truth as fact is caused in part by the absence of national education standards, combined with the anti-intellectualism that we see everywhere. America’s insistence on local control of schools means that children in the poorest areas of the country have the worst school facilities and teachers with the worst training.

Among OECD nations, only in the US, Israel and Turkey do disadvantaged schools have lower teacher/student ratios than in those serving more privileged students.

This gives us an America in which anti-intellectualism is not only tolerated, but celebrated by many politicians and the media. Meanwhile, 25% of Texas high-school biology teachers believe that human beings and dinosaurs shared the earth, and more than a third of Americans can’t name a single First Amendment right.

Facts don’t matter, because more and more Americans cannot recognize facts as true. Jacoby says:

This level of scientific illiteracy provides fertile soil for political appeals based on sheer ignorance.

Our 2016 presidential campaign has clarified what’s wrong with us as a nation. Yet, we’ve proven to willingly to put up with it.

Instead of putting up with what’s wrong, how about fixing it?

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Oligarchs Seek Indentured Servants

Just when you thought that there couldn’t be another scheme to further mess with college students as they embark on their post-college journey, along come Income Share Agreements (ISAs).

The ISA is a contract whereby an individual investor (or a fund) would agree to provide a student with a lump-sum payment to be used for education costs, in exchange for receiving a share of the student’s income for a fixed period (5-10? years). The repayment would most likely be structured as a dividend on a security, thereby allowing the investor to pay a lower tax rate than on interest income.

Individual ISA contracts would be pooled and sold to investors. These are the kind of contracts that could only flourish in our growing oligarchy.

We have a student debt bubble. Student debt has tripled in 10 years, now totaling more than $1.3 trillion, or more than the country’s total debt for credit cards, auto loans and any other category except for home mortgages. Student debt default rates are equal to those of the 2008 subprime housing loan crisis, and the debt continues to grow, up this year by an estimated 8% with an estimated average debt of $35k each. About 70% percent of students have graduated with debt this year.

And now, ISAs are the new idea to siphon off student debt into the private sector. WaPo reported on Friday that Purdue University signed an agreement with Vemo Education a Virginia financial services firm, to look into the use of ISAs to help Purdue students pay for their educations. In an earlier WaPo op-ed, Mitch Daniels, former Republican governor of Indiana and President of Purdue, said:

From the student’s standpoint, ISAs assure a manageable payback amount, never more than the agreed portion of their incomes…Best of all, they shift the risk of career shortcomings from student to investor: If the graduate earns less than expected, it is the investors who are disappointed; if the student decides to go off to find himself in Nepal instead of working, the loss is entirely on the funding providers, who will presumably price that risk accordingly when offering their terms. This is true “debt-free” college.

What a nice way to say “indentured servitude.” And universities get to keep raising tuition faster than inflation. Sounds like a real winner for Mitch and other Republicans.

The argument by the free-market types is that ISAs shift risk from the backs of students to the investors. If the student has not earned enough over the period of the agreement to return the original capital to the investor, the student would have no further money obligation.

Sounds good. But, why would the investors agree to fund any low-paying degrees? It is logical that they would look to fund only those who represented a low risk of achieving significant earnings in the initial 10 years of working. So they would want to finance medical and engineering degrees while leaving the social workers and teachers to public sector finance. If private sources (investment funds) are providing the money and setting the terms, then loans will only go to those who are most likely to be successful.

And, Mr. Market will tell us which degrees and careers are worthy.

The investment fund will have access to voluminous private data that will allow it to make a precise (nearly riskless?) ISA negotiation with the student, while students are likely to only have access to their University’s aggregate data on expected salaries by type of degree.

If there was any doubt that this is a neo-con approved idea, consider that Republican presidential candidate Sen. Marco Rubio (R-FL) and Rep. Tom Petri, (R-WI) proposed ISA legislation with a maximum contract length of 30 years and the share of income capped at 15%. This is touted by Sen. Rubio’s supporters as evidence of his “innovative ideas.”

Sadly this idea has been around since the 1950s, when it was first floated by conservative economist Milton Friedman.

One of the most significant factors in our uneven economic recovery since 2008 is how we’ve become beholden to the oligarchs. The gig economy has replaced permanent jobs. Wages have stagnated, and companies are motivated solely by returning money to shareholders, often through share repurchases.

Now, college students are supposed to provide another class of equity return for the investors. They are to syndicate themselves to “shareholders”?

It’s a sick idea, one that only the greediest among us would support.

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Monday Wake-Up Call – October 20, 2014

Happy Monday! Here is your thought for the week:

“People react to fear, not love. They don’t teach that in Sunday school, but it’s true” − Richard M. Nixon

Not a complete surprise that Nixon was wrong. They DO teach fear in Sunday school:

COW Fear

 

 

 

 

 

 

 

 

 

 

 

 

 

In Liberia, only 43% of the adult population are literate, so radio, not the written word, is the best way to inform people about the disease. There are 16 local languages in Liberia, in addition to English. People rarely have access to the Internet or television.

Songs about Ebola are popular in West Africa. One of the most popular is “Ebola in Town” by Samuel “Shadow” Morgan and Edwin “D-12” Tweh, along with Kuzzy, of 2Kings. The song sounds like American hip-hop, but the style is called “Hip Co”, a form of colloquial English that appeals to young Liberians (about 50% of the population is under 18).

Here is an audio file of the song. There are YouTube videos out there, but they have extremely graphic depictions of Ebola victims, and may not be suitable for viewing at work or at home, if kids are in the room:

https://soundcloud.com/shadowmrgn/ebola-in-town-d-12-shadow-kuzzy-of-2kings

A sample of the lyrics:
Something happen
Something in town

Oh yeah the news

I said something in town
Ebola
Ebola in town

[Snip]

If you like the monkey

Don’t eat the meat
If you like the baboon
I said don’t eat the meat
If you like the bat-o
Don’t eat the meat
Ebola in town.

Songs can’t do all that much in a nation with the second-fewest doctors per person in the world.

Here are today’s hot links for your breakfast buffet:

Ebola got you stressed? Try textual healing. A new breed of online-therapy services offers flat-rate plans that allow you to text-chat with a licensed, accredited therapist as much as you like (need).

At least 30 states are still providing less funding per student for the 2014-15 school year than they did before the recession hit.

Researchers have created what they call Alzheimer’s in a Dish — a petri dish with human brain cells that develop the telltale structures of Alzheimer’s disease.

And we were doing so well in Pakistan: Six senior members of the Pakistani Taliban vowed allegiance to the Islamic State.

Go ahead, take your time getting to the party: Study shows that the median arrival time of 803 guests was 58 minutes after the party’s start time.

Of course we love our allies: Saudis to behead, then crucify a cleric who spoke out against the King. Did you know that Saudi Arabia doesn’t have a constitution?

We will never learn: John Allen, the general in charge of the US-led coalition’s response to ISIS says the US will create “a home-grown, moderate counterweight to the Islamic State”. Didn’t work in Vietnam, Afghanistan, or Iraq. Why would it work this time?

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