Group items tagged

"Millions of Americans who went to college seeking a better future now face crushing debt from student loans-while the industry makes a handsome profit. How a broken system landed so many in this mess."

"Student debt in the U.S. has reached record levels, making higher education out of reach for many people. In New York City, a program called ASAP is gaining national attention for helping students earn a college degree and escape the burden of loans they would struggle to repay."

The crisis that is about to break out involves student debt and how we finance higher education. Like the housing crisis that preceded it, this crisis is intimately connected to America's soaring inequality, and how, as Americans on the bottom rungs of the ladder strive to climb up, they are inevitably pulled down - some to a point even lower than where they began.

"Ivory Tower takes a look at universities and their transformation from providers of education to business ventures that strive to be the biggest and the best providers of the "college experience". The competition among these institutions of higher learning has had an adverse effect on those they are suppose to serve. From less rigorous curriculums to higher tuition prices, the universities have changed the way Americans think of educations. Students are now consumers and university presidents are CEOs overseeing multiplexes of the college experience. In order to pay for that experience, students are taking out an average of about $30,000 in student loans. The overall student debt in the US has now surpassed $1tn."

While 60 percent of American college students graduate in the red, owing an average of $25,300, Michael will depart free of debt and rich with stories about his life as a stripper.

As college debt skyrockets to over $35,000 per student, the state of Oregon has proposed a novel investment approach to loans: free tuition at public universities in exchange for 3 percent of earnings for the first 25 years after graduation. Just like a venture-capital portfolio that earns its profit from a few star investments, many students would end up underpaying the cost of their college, subsidized by the school's star businessmen.

"For the fiscal year 2017 budget, the U.S. Department of Education (Education) estimates that all federally issued Direct Loans in Income-Driven Repayment (IDR) plans will have government costs of $74 billion, higher than previous budget estimates. IDR plans are designed to help ease student debt burden by setting loan payments as a percentage of borrower income, extending repayment periods from the standard 10 years to up to 25 years, and forgiving remaining balances at the end of that period. While actual costs cannot be known until borrowers repay their loans, GAO found that current IDR plan budget estimates are more than double what was originally expected for loans made in fiscal years 2009 through 2016 (the only years for which original estimates are available). This growth is largely due to the rising volume of loans in IDR plans."

"too many young people are spending years on loan repayment instead of growing personal wealth through investments like real estate and retirement accounts. In the long term, Elliott adds, that can be a drag on the economy - and create a wealth divide between people who have student debt and those who don't."

"The U.S. Department of Education is sticking to the rosier news in a brief report released this week that shows the number of U.S. student-loan holders enrolled in income-based repayment plans has jumped by more than 50 percent since last year. According to the government, 3.9 million borrowers have signed up for income-based repayment plans as of this June. But while these programs, which have existed in some form since 1994 but were supercharged only in the past few years, can cut monthly loan payments by hundreds of dollars for individual borrowers, their cost to taxpayers overall is rising fast."

"The Chronicle asked students, recent graduates, parents, and experts a simple question: What is the most you should borrow for a bachelor's degree?"

" In Boston, for example, the average cost of renting a two-bedroom apartment is $2,821, which means that you would need to earn $120,900 a year just to afford it"

The idea that a college diploma is an all-but-mandatory ticket to a successful career is showing fissures. Feeling squeezed by a sagging job market and mounting student debt, a groundswell of university-age heretics are pledging allegiance to new groups like UnCollege, dedicated to "hacking" higher education.

University of Baltimore students won't have to pay for their last semester of school anymore, under one condition: They must finish on time. The program, called Finish4Free, is more than a nice gesture to cut students a break on their school debt. The university thinks that letting students finish their last semester for free will encourage more to finish on time.

ducation without limits begins a much needed discussion," Foreman said. "As public education is eviscerated in urban cores and debt burdens college students in a limited job market for decades after graduation, many agree that we need to discuss an invigorated public education system that makes education available for everyone, not just those who can afford it."

"In the United States-where public universities are hurting for funds, tuition and debt levels are growing, and graduation rates are stagnant-debate has focused on whether MOOCs represent a necessary innovation or the deplorable cheapening of elite university education. The question is: Could the hybrid, small-group model that's evolving abroad also provide a needed alternative for underserved American students?"

"The kalamazoo promise was simple. Live here, go to school, and your tuition is paid for. But with scale comes complication. The idea of free college is still in its infancy-it took 28 years to get the Morrill Act right, and it's only been 13 since the Kalamazoo Promise. But in the current political climate, the path forward is murky and winding, and that makes it hard for the movement to maintain the momentum it needs. The window of opportunity for nationwide tuition- or debt-free college is still ajar. The next couple of elections could close it completely or throw it wide open.  "

Mission U provides students career-focused, online courses with zero up-front costs. After graduating, students don't pay any tuition until they're earning a yearly salary of $50,000 or more, in which time they would pay 15% of their paycheck to Mission U for 3 years. After those three years are up, students are completely debt free.

"Wherever the money is coming from, and however it is being spent, the root of the crisis in higher education (and the evidence that investment in universities may amount to a bubble) comes down to the fact that additional value has not been created to match this extra spending. Indeed, evidence from declines in the quality of students and graduates suggests that a degree may now mean less than it once did."

"Felder, who graduated in 2007 with a bachelor's degree in communications, reportedly exhibits a remarkable amount of devotion to the school that led him to flounder both professionally and financially, claiming that attending the university was "the best decision [he] ever made.""

Antioch University is the first US institution to receive approval from Coursera to offer college credit for specified Coursera MOOCs (massive open online courses). Through this new partnership, Antioch University and the Antioch University Los Angeles campus can reduce student costs to complete a four-year degree and expand course offerings through free online courses offered by the highly respected universities that have partnered with Coursera.

Very cool! Maybe college debt will start to go down for students of the future. Higher levels of education for less money :) I know I will paying back my school loans until I am dead.