Perdido 03

Perdido 03
Showing posts with label student loan debt. Show all posts
Showing posts with label student loan debt. Show all posts

Wednesday, February 11, 2015

Cuomo's Raised SUNY Tuition 25%+ Over Five Years - But More Increases Are Coming

I'd say this is unbelievable, but it's not:

SUNY WANTS MORE TUITION INCREASES—Capital’s Jessica Bakeman: “SUNY chancellor Nancy Zimpher wants to continue incremental tuition increases after the current plan sunsets in 2016, she told lawmakers during a legislative budget hearing on Tuesday.
Zimpher also asked lawmakers to allocate $50 million a year for the next five years to an investment fund that would support expanding the system’s online education offerings, strengthening the effectiveness of remediation programs and boosting degree completion.” http://bit.ly/17bE4dC

Cuomo says he's concerned about student loan debt and he's issued a plan that would allegedly help NY students pay for some of it for a couple of years.

You know what would be a better plan?

Stop raising SUNY tuition.

Provide more state money for SUNY instead of increasing tuition and fees on students and their families.

The hypocrisy of Andrew Cuomo knows no bounds.

He imposed a plan that raised tuition by more than 25% over five years.

And now if the hack running SUNY gets her way, they'll be even more tuition increases.

Sunday, January 25, 2015

Governor Cuomo Is Responsible For Higher College Costs At SUNY

Man, sometimes even the NY Post gets stuff right.

Take this editorial on college loans and the Cuomo proposal to have NY State pick up some of the loan for a couple of years for college graduates who remain in NY State but are make less than $50K a year:

On one thing President Obama and Gov. Cuomo are agreed: The answer to high tuition and crushing student debt is more money from the government.

Problem is, it’s precisely government dollars that are driving up the price of college tuition at a rate far faster than general inflation.

Right now, colleges have no skin in the loan game: If a kid drops out before earning his degree, or if she earns a degree that is worthless and so can’t get a job that pays enough to let her pay off her loans, that’s terrible for her.

But the school has already been paid.

The solution the Posties propose?

If you want to lower college costs, don’t just throw more money at the schools. Ensure the universities have some skin in the game — e.g., by forcing them to pick up part of the loans for a kid who fails out.

And make ’em work for their customers by demonstrating why their degrees are worth what they’re charging for them.

I don't know exactly how you do that second thing, since so many of the second and third tier private schools charge a LOT of money for a degree of dubious value that could be gotten from a state school for much less.

But I do know that making the schools pick up some of the loan costs of students who drop out might make these schools think twice about a) tuition costs and b) loading students up with loans.

But the best way to hold down college costs and give students a quality education is for NY State to provide MORE state aid to SUNY.

Under Governor Cuomo, the percentage of SUNY costs covered by state aid has dropped and the percentage of SUNY costs covered by tuition has increased.

Cuomo has instituted five years of tuition increases that will result in students paying more than 25% higher tuition and fee costs from before he became governor.

I posted this when Cuomo first released his loan debt relief plan and I want to post it again:

Governor Cuomo is the reason why SUNY costs are so high in NY State for college students.

I think the Post is right that colleges ought to have some skin in the game when it comes to student loans.

But I also think Governor Cuomo and the state Legislature ought to be providing more state aid to SUNY in order to provide opportunities for an affordable, quality education to all.

Sunday, September 29, 2013

Save Her The Money, Bill


Write her a nice letter of recommendation to a SUNY school and save her the money, Bill.

NYU - overpriced, over-hyped, overrated.

Kids should look very closely at CUNY and SUNY schools instead and visit Greenwich Village during their time off from school.

Unless NYU knocks the entire Village down to make dormitories, always a possibility with that real estate expansion thing of theirs going on ad infinitum.

Then they won't be able to visit the Village anymore.

Thursday, August 22, 2013

Race To The Top Comes To College

The tentacles of the federal government look to grow longer:

President Barack Obama begins a speaking tour in New York on Thursday to push his plan to make college more affordable at a university in Buffalo, N.Y., and a high school in Syracuse, N.Y.
The plan the president will propose focuses on tying funds for schools to performance, spurring innovation and competition and keeping student debt affordable, according to a fact sheet released by the White House on Thursday.

Obama will propose tying federal aid to universities to performance of students and affordability, as opposed to the number that enroll. To do this, the Department of Education will develop a rating system for college value by 2015, and that will be used to make aid decisions by 2018. He also will push a “Race to the Top” for states to reward better higher education with lower costs, the White House said.

The president will also propose a $260 million fund to spur schools to innovate, including with technology, and the administration will issue “regulatory waivers” to schools for experimentation.

Can VAM for college professors be far behind?

Look, college cost is a huge problem.

So is student loan debt.

Do you know how you solve those problems?

Increase the Pell Grant.

Curtail loan programs (which the feds make money, btw, - an estimated $184 billion over the next ten years.)

Incentivize states to fund their state university systems to keep costs low.

Raise taxes on rich people and put the money toward Pell Grants and state university systems.

If private colleges want to continue to raise costs beyond inflation, year after year, let them.

If there are viable state university system alternatives that are fully funded by state governments and provide quality educations comparable to private colleges for a fraction of the cost, you can bet the president of NYU is going to think twice about raising tuition another $100 a credit so that he can buy up more Greenwich Village real estate.

But there is too much money to be made from the loan programs, both for the banksters and for the government, for them to ever curtail those.

And the oligarchs and plutocrats who run the country are not interested in paying higher taxes for any reason - especially not to fund state university systems.

So instead we get Race to the Top Mach 3 - College and University Edition.

A neo-liberal dream.

Not going to solve what they say it's going to solve.

But there will be some money to be made by the "innovators," "entrepreneurs" and "disruptors" of the system - lots of it.

And isn't that what this is all really about anyway?

Using a self-manufactured "crisis" to make billions for the vulture class - that's what this is.

Monday, May 20, 2013

Gillibrand Wants To Let Students Refinance Loans At Lower Interest Rate

Doubtful this legislation will pass, but it's a good idea:

Sen. Kirsten Gillibrand is proposing new legislation to give students a bit of a break as they try to pay off their school loans.

The Federal Student Loan Refinancing Act would let current students and graduates refinance their federal student loans, known as Stafford loans, at a fixed 4-percent interest rate.

The interest rate on Stafford loans is set to double to 6.8 percent in July, if Congress does not act to prevent it.

Gillibrand says the average New York student owes more than $27,000.

She also says more than 10 percent of graduates are delinquent on repayments.

It used to be that students could consolidate loans at lower rates if the market rate had fallen.

But not after Bush and the Congress redid the laws and regulations.

Now you own the interest rate you took the loan out at until you pay it off or you die.

Of course, even if you die, your co-signer still owns the loan.

I have a hard time seeing the Obama administration or the GOP agreeing on the Gillibrand bill.

But it would be nice if they would. 

Monday, April 29, 2013

Obama Set To Screw College Students, Parents On Loan Rules

Oh yes he is:

The Obama administration has found itself at odds with a key voting block—college students and their advocates—as well as many of its Democratic allies in Congress, because of an important, if technical, budget proposal that could have significant implications for college access.

In a move intended to stave off a doubling of interest rates on federally backed Stafford Loans over the summer, the administration is seeking to shift those interest rates from the current predictable, fixed-rate system to a market-based rate at the time of the loan. Right now, interest rates on subsidized Stafford Loans are set at 3.4 percent, but they're slated to jump to 6.8 percent in July, unless Congress and the administration act.

The shift to a 6.8 percent fixed rate could cost a student with $20,000 in debt—roughly the national average—an additional $12,000 over the life of their loan, according to an analysis by the Institute for College Access and Success, a nonprofit organization in Oakland, Calif.

The administration and some Democrats in Congress have very different ideas about how to head off that potential rate increase. Advocates for students agree that under current interest rates, which are at historic lows—for instance, the rate was 1.73 on April 17—President Barack Obama's fiscal 2014 budget proposal offers a better deal for borrowers than they're getting right now.

But the proposal doesn't place any cap on the interest rate, leaving students open to much more expensive loans if interest rates soar in the future, critics argue.

Just hours after the Obama administration released its budget blueprint April 10, a coalition of student-advocacy groups including the National Campus Leadership Council, U.S. PIRG, Our Time, Rock the Vote, and the Young Invincibles put out a joint statement disparaging the loan plan.

 "Students have never taken out federal student loans without a cap on how high interest can go," they wrote. "The president stood with us by investing in higher education during his first term, and we're concerned that his budget does not deliver the same investment this time around."

 Nope - sounds like he's throwing college students and their parents overboard.

6.8% interest rates on student loans is high.

But leaving the Stafford Loan program without a cap means those rates can go much higher than that.

Sure, with the Federal Reserve printing press in overdrive these days, the loan rates are low right now.

But they won't remain low forever.

Not with all those extra Uncle Ben's Federal Reserve Chairman Bernanke threw into the system that eventually he (or his successor) will have to pull out of it.

I dunno, maybe we'll never see 17% interest rates the way we did back in the 70's.

But if we did, and there was no cap on Stafford Loans, that's where those interest rates would go.

Hey, Obama, how about extending the 3.4% rate on Stafford Loans by going on the TV and telling everybody Republicans want to double the loan rate to 6.8% so they can pay off their banker and Wall Street friends?

Tuesday, April 9, 2013

Federal Government Makes Money On Student Loans

Interesting - the federal government actually makes money on student loans.

No wonder those in power seem to want the interest rates to double:

The interest rate on many student loans is scheduled to double on July 1, to 6.8 percent from 3.4 percent — just as it was last year, when in the midst of an election campaign, Congress voted to extend the lower rate.

...

On Tuesday, the day before the White House plans to send its budget to Congress, student advocacy groups are releasing an issue brief charging that the federal government should not be profiting from student loans, while more and more students bear a crushing debt burden. 

The brief, citing a February report from the Congressional Budget Office, said the federal government makes 36 cents in profit on every student-loan dollar it puts out, and estimates that over all, student loans will bring in $34 billion next year.

“Higher education loans are meant to subsidize the cost of higher education, not profit from them, especially at a time when students are facing record debt,” said Ethan Senack, the higher education advocate at the United States Public Interest Research Group, which is issuing the brief with the United States Student Association and Young Invincibles, an organization for people 18 to 34.
“The revenue from student loans should be used to keep education affordable, and should never be used to pay down the deficit or for other federal programs,” Mr. Senack said. 

While it has long been known that the government makes money on student loans, the numbers in the issue brief are surprising, said Terry Hartle, senior vice president of the American Council on Education. 

“If the numbers are accurate, the government will make more money on student loans than Ford makes on automobiles,” he said. “Using student loans to create a profit center is not what anybody intended.

Seems like everybody is making money off the college students.

There's the College Board and the SAT prep companies and the colleges themselves and the companies that hire these students or graduates as interns and pay them nothing and now we see that the government makes more money off loans than Ford makes off cars.

Generation Debt really is screwed.

Friday, March 29, 2013

Interest Rates For Student Loans Set To Double

This is bad:

WASHINGTON — Congressional inaction could end up costing college students an extra $5,000 on their new loans.

The rate for subsidized Stafford loans is set to increase from 3.4 percent to 6.8 percent on July 1, just as millions of new college students start signing up for fall courses. The difference between the two rates adds up to $6 billion.

Just a year ago, lawmakers faced a similar deadline and dodged the rate increase amid the heated presidential campaign between President Barack Obama and Republican challenger Mitt Romney. But that was with the White House up for grabs and before Washington was consumed by budget standoffs that now seem routine.

“What is definitely clear, this time around, there doesn’t seem to be as much outcry,” said Justin Draeger, president of the National Association of Student Financial Aid Administrators. “We’re advising our members to tell students that the interest rates are going to double on new student loans, to 6.8 percent.”

The rates do not count for subsidized loans previously taken out by students - just for future Stafford subsidized loans.

Unsubsidized and private student loan rates are not expected to change.

Let's see, the banks get money at 0% and lend it out at 3.4% -hmm, that's a pretty good deal for the banks.

Now they get money at 0% and lend it out at 6.8% - and the loans are "guaranteed".

Sure is good to be bankster.

Might say it's better to be a bankster than even a king.

And where is Obama in all of this?

So far, pretty silent.

Saturday, July 7, 2012

Push For Science Majors, But Lots Of Unemployed Ph.D's Already

So reports the Washington Post:

Michelle Amaral wanted to be a brain scientist to help cure diseases. She planned a traditional academic science career: PhD, university professorship and, eventually, her own lab.

But three years after earning a doctorate in neuroscience, she gave up trying to find a permanent job in her field.

Dropping her dream, she took an administrative position at her university, experiencing firsthand an economic reality that, at first look, is counterintuitive: There are too many laboratory scientists for too few jobs.

That reality runs counter to messages sent by President Obama, the National Science Foundation and other influential groups, who in recent years have called for U.S. universities to churn out more scientists.

Obama has made science education a priority, launching a White House science fair to get young people interested in the field.

But it’s questionable whether those youths will be able to find work when they get a PhD. Although jobs in some high-tech areas, especially computer and petroleum engineering, seem to be booming, the market is much tighter for lab-bound scientists — those seeking new discoveries in biology, chemistry and medicine.

“There have been many predictions of [science] labor shortages and . . .robust job growth,” said Jim Austin, editor of the online magazine ScienceCareers. “And yet, it seems awfully hard for people to find a job. Anyone who goes into science expecting employers to clamor for their services will be deeply disappointed.”

Oh, but wait - Obama and the rest of the corporate education reformers say if we just push more students to study science, we'll have a much more competitive workforce and people will have good paying jobs that will allow them to live a middle class lifestyle.

Except that's horseshit:

One big driver of that trend: Traditional academic jobs are scarcer than ever. Once a primary career path, only 14 percent of those with a PhD in biology and the life sciences now land a coveted academic position within five years, according to a 2009 NSF survey. That figure has been steadily declining since the 1970s, said Paula Stephan, an economist at Georgia State University who studies the scientific workforce. The reason: The supply of scientists has grown far faster than the number of academic positions.

The pharmaceutical industry once offered a haven for biologists and chemists who did not go into academia. Well-paying, stable research jobs were plentiful in the Northeast, the San Francisco Bay area and other hubs. But a decade of slash-and-burn mergers; stagnating profit; exporting of jobs to India, China and Europe; and declining investment in research and development have dramatically shrunk the U.S. drug industry, with research positions taking heavy hits.

Since 2000, U.S. drug firms have slashed 300,000 jobs, according to an analysis by consulting firm Challenger, Gray & Christmas. In the latest closure, Roche last month announced it is shuttering its storied Nutley, N.J., campus — where Valium was invented — and shedding another 1,000 research jobs.

“It’s been a bloodbath, it’s been awful,” said Kim Haas, who spent 20 years designing new pharmaceuticals for drug giants Wyeth and Sanofi-Aventis and is in her early 50s. Haas lost her six-figure job at Sanofi-Aventis in New Jersey last year. She now works one or two days a week on contract at a university in Philadelphia. She has to dip into savings to make ends meet.

“Scads and scads and scads of people” have been cut free, Haas said. “Very good chemists with PhDs from Stanford can’t find jobs.”

Largely because of drug industry cuts, the unemployment rate among chemists now stands at its highest mark in 40 years, at 4.6 percent, according to the American Chemical Society, which has 164,000 members. For young chemists, the picture is much worse. Just 38 percent of new PhD chemists were employed in 2011, according to a recent ACS survey.

Although the overall unemployment rate of chemists and other scientists is much lower than the national average, those figures mask an open secret: Many scientists work outside their chosen field.

“They’ll be employed in something,” said Michael S. Teitelbaum, a senior adviser to the Alfred P. Sloan Foundation who studies the scientific workforce. “But they go and do other things because they can’t find the position they spent their 20s preparing for.”

Many Ph.D's are working low wage jobs - sometimes doing low paying post doc jobs for five, seven or ten years. Most post doc's are being exploited by a system set up to do just that:

The lack of permanent jobs leaves many PhD scientists doing routine laboratory work in low-wage positions known as “post-docs,” or post-doctoral fellowships. Post-docs used to last a year or two, but now it’s not unusual to find scientists toiling away for six, seven, even 10 years.

Until recently, Amaral, 39, the neuroscientist, was one of perhaps 100,000 scientists — the figures are fuzzy — in the United States working as a post-doc. After earning her expensive doctorate in neuroscience, which took seven years and she financed by working and drawing down her savings, Amaral spent a year counting blips on a computer screen for another scientist.

“I couldn’t answer the question of how this was any different from undergraduate work,” Amaral said.

Salaries for university post-doc jobs start at about $39,000, according to the National Postdoctoral Association. They require a science PhD — which can leave the recipient buried in debt. Benefits are usually minimal and, until a decade ago, even health insurance was rare.

Stephan calls the post-doc system a “pyramid scheme” that enriches — in prestige, scientific publications and federal grant dollars — a few senior scientists at the expense of a large pool of young, cheap ones.

“I don’t think anybody minds sucking it up for a year or two, seeing it as an apprenticeship,” said Zoe Fonseca-Kelly, a PhD geneticist who spent seven years as a post-doc at three universities. “What’s very frustrating is that it’s turned into a five-year process. People get very disillusioned with it.”

Fonseca-Kelly got fed up with it, too. She left the lab for an administrative job at Harvard Medical School.

The post-doc system is “dysfunctional and not sustainable in the long term,” Princeton University President Shirley Tilghman told top brass at NIH earlier this month. Tilghman heads an NIH-appointed panel that is wrestling with overhauling how that agency trains new scientists. A new report from her group calls for better pay and more benefits for post-docs and major changes in how NIH funds young scientists.

Like many scientists, Amaral grew disillusioned with the system that left her with an expensive degree but few job options. She left her lab in December after federal funding for her post-doc position ran out. She now works as an administrator at the University of Alabama-Birmingham and is in a “holding pattern,” unsure whether — or how — to advance a science career she spent more than a decade working toward.

“I’ve listened to this stuff on the news about how we need more scientists and engineers,” she said. “I’m thinking, ‘What are you talking about?’ We’re here. We need something to do besides manual labor for another academic person.”


So Obama is pushing for more scientists when we already have a glut of them, there are few jobs for the ones who are already here, and the future looks even bleaker as budget cuts and outsourcing makes the situation even worse for science Ph.d's.

And of course he blames public schools and public school teachers for many of the country's economic woes, but he says once we re-do the system so that we can graduate more STEM majors, all will be well.

Except we already have a glut of many of those majors and they're working at the science equivalent of The Gap while they watch the interest owed on their student loans crush them for life.