Tag Archives: Student

Rising student debt will impact future housing demand

Bad news for homeowners from the California Association of REALTORS. (H/T Captain Capitalism)

Excerpt:

At May’s midyear legislative meetings held by the National Association of Realtors in Washington, DC, a panel of experts in a session titled “Shifting Demographics and Housing Choice: A Whole New World?” discussed future housing market demand and trends to keep in mind as we think about the future of housing in the U.S.

The biggest takeaway was that baby boomers will increasingly contribute to housing supply as they age, yet echo boomers are in a difficult position to absorb the inventory. The echo boomers, also called Millennials, are those currently ages 17 to 31, and account for 62 million people. And although future housing demand highly dependents on different rates of household formation among Echo Boomers, this generation is in a precarious position.

In addition to having seen the worst housing downturn, these younger buyers have been hit hard by the recession. Faced with an uncertain job market, no real income growth, tighter mortgage lending rules, and mounting student and credit card debt, it is no surprise that some of them do not put priority on homeownership.

The concern over student debt is particularly alarming. According to a number of recent research studies, college seniors who graduated with student loans each owed an average of $25,250, up significantly from an average of $12,750 in 1996. Parents have accumulated student debt as well, $34,000 on average. The aggregate amount of student loan debt in the U.S. is over $1 trillion currently. The pace at which debt is mounting adds to the concern. Between March 31, of this year and 2011, student loan debt rose by $64 billion. However, over the same period, all other forms of household debt fell by $383 billion. Put another way, since the peak in household debt in the third quarter of 2008, student loan debt has increased by $293 billion, while other forms of debt fell by $1.53 trillion.

The rise in student debt is attributable to rising cost of education. Since 1978, the cost of tuition in the U.S. has increased more than 900 percent, 650 points above inflation. Between1990 and 2010 alone, tuition rose by 116 percent while the median household incomes inched a mere 2.1 percent.

The libertarian Cato Institute knows what the problem is (see my bold below) and they know how to fix it too.

Excerpt:

The real answer is for the federal government to get out of the higher education subsidy business altogether, as a Cato essay argues.

The following are some key points from the essay:

  • The effect of subsidy programs, in part, is to impose taxes on blue collar workers—who have not attended college—to pay for the tuition of future white-collar professionals. Why should the government subsidize future high earners at the expense of average working people?
  • Federal student aid programs transfer wealth from taxpayers to academic institutions. That’s because the rise in student subsidies over the decades appears to have fueled inflation in education costs. Tuition and other college costs have soared as subsidies have risen. College cost inflation induced by federal aid probably hurts low-income families—the people that federal aid was supposed to target—more than others.
  • Federal aid has probably helped increase student enrollment, but many of those additional students may not have been ready, or suited, for college. This is evidenced by the rising shares of college students who require remedial work, and the fact that institutions have lowered their standards to adapt to the rise in second-rate students.
  • Increasing top-down control and subsidization of higher education from Washington is creating a threat to the strength of the American system. As we have seen in K-12 education, the growth in federal subsidies is usually accompanied by calls for more oversight, micromanagement, and rising levels of red tape imposed by Washington.
  • Federal student loan and grant programs have been subject to waste and fraud for decades. The Pell grant program (which SAFRA would enlarge) costs taxpayers hundreds of millions of dollars per year in fraud. Another ongoing problem is the high default rate on student loan programs.

Will the student debt problem be fixed through privatization? Not while Obama is in office. The universities are dominated by secular leftists – they are the ones who benefit from these rising tuition costs. Obama isn’t going to do a thing to stop them from getting your money through subsidies, otherwise he would lose lots of campaign donations!

In the meantime, the best policy is to make sure that you do your degree in a STEM field (science, technology, engineering or math). Non-STEM degrees, according to Captain Capitalism, are not recommended.

How the secular left made a generation of public school students unteachable

I’m totally swamped with a release deadline tonight, but I noticed that Stuart Schneiderman linked to this article earlier today and I thought you might like it. I chose an excerpt that talks about the well-known problem of students attacking TAs and professors after they get poor grades in order to make them change the grade – without doing any make-up work.

Excerpt:

This pedagogy of self-esteem developed in response to the excesses of rote learning and harsh discipline that were thought to characterize earlier eras. In Charles Dickens’ Hard Times, Mr. Gradgrind, the teacher who ridicules a terrified Sissy Jupe for her inability to define a horse (“Quadruped. Graminivorous. Forty teeth … ”), was seen to epitomize a soulless pedagogical regime that deadened creativity and satisfaction. Dickens and his readers believed such teaching to be a form of mental and emotional abuse, and the need to protect students from the stigma of failure became an article of faith amongst progressive educators. For them, the stultifying apparatus of the past had to be entirely replaced. Memorization itself, the foundation of traditional teaching, came to be seen as an enemy of creative thought: pejorative similes for memory work such as “rote learning” and “fact-grinding” suggest the classroom equivalent of a military drill, harsh and unaccommodating. The progressive approach, in contrast, emphasizes variety, pleasure, and student interest and self-motivation above all.

It sounds good. The problem, as traditionalists have argued (but without much success), is that the utopian approach hasn’t worked as intended. Rather than forming cheerful, self-directed learners, the pedagogy of self-esteem has often created disaffected, passive pupils, bored precisely because they were never forced to learn. As Hilda Neatby commented in 1953, the students she was encountering at university were “distinctly blasé” about their coursework. A professor of history, Neatby was driven to investigate progressive education after noting how ill-equipped her students were for the high-level thinking required of them; her So Little For the Mind remains well-worth reading. In her assessment:

The bored “graduates” of elementary and high schools seem, in progressive language, to be “incompletely socialized.” Ignorant even of things that they might be expected to know, they do not care to learn. They lack an object in life, they are unaware of the joy of achievement. They have been allowed to assume that happiness is a goal, rather than a by-product.

The emphasis on feeling good, as Neatby argued, prevents rather than encourages the real satisfactions of learning.

Of course, the progressive approach has advantages, not the least of which is that it enables university administrators to boast of the ever-greater numbers of students taking degrees at their institutions. Previously disadvantaged groups have gained access to higher education as never before, and more and more students are being provided with the much-touted credentials believed to guarantee success in the workforce. Thus our universities participate in a happy make-believe. Students get their degrees. Parents are reassured that their money has been well-spent. And compliant professors are, if not exactly satisfied — it corrodes the soul to give unearned grades — at least relieved not to encounter student complaints.

I can remember when I was doing my Masters in computer science a few years back when I was taking a course in Network Security. Somehow, I botched the midterm so badly that I ended up with a 14 out of 20. I was disgusted with myself, and pleaded with the professor to give me something – anything – to help me get my grade back up. He gave me a programming assignment that was harder than the midterm, and it took about 20 hours to do. I gave up my weekend and got it done. He raised my grade. Professors are usually willing to give you a break if you want to demonstrate that you have the knowledge. But when you just go in there and complain to get the grade changed without learning anything, it’s just not right.

When you get out into the real world, either you have the skills, or you don’t. Your transcript doesn’t really matter. It’s rare for interviewers to even look at transcripts anymore. Instead, they want to see what you’ve actually done. I once had to do a 20 hour implementation of a multi-user clustered cache for one interview with a CRM company. I had to pass several interviews before they gave me that independent study, and they looked at my code line by line. It was a lot of code, too. Grades don’t matter in the real world. What matters is what you can do. If you can’t do the job that companies expect, they will find someone else – maybe in another country – who can do it. That’s why students should not put so much emphasis on grades. You’re only cheating yourself if you really can’t do the work.

Is there a bullying epidemic against gay students?

From the Lilley Pad – the blog of Canadian journalist Brian Lilley.

Excerpt:

We are being told it is part of a bullying epidemic, specifically an anti-gay bullying epidemic. We are told that suicide rates are huge.

Now the numbers don’t back this up.

We’ve talked before on this show that men between 35 and 54 are the most likely group to commit suicide, men in their 90s have among the highest success rates compared to attempts.

Teen boys, specifically gay teen boys killing themselves is tragic, just as every suicide is but it is not an epidemic.

Neither is there an epidemic of bullying in Canada or the United States.

In an op-ed in the Saturday edition of the Wall Street Journal, Nick Gillespie detailed how bullying rates in the US have bounced from 28% of kids being bullied in 2005 to 32% in 2007 and then back down to 28% in 2009 the most recent year available.

Here in Canada the rate sits at about 25% of children reporting bullying, a number that has remained fairly steady and is similar to the 20-22% reported by a pair of academics who have studied this issue across Canada.

What are kids bullied about most often?

You would think from the news media that it is sexual orientation but it’s not.

Body image is by far the leader, followed by grades or marks, cultural background, language, gender, religion and then income.

So what is driving this?

I’d say it is an agenda and that agenda was on display last week at the Ontario Legislature.

We’ve discussed the attempt by the McGuinty government in Ontario to force Catholic schools to let kids set up and run their own gay-straight alliance clubs even though such a club would go against Catholic teaching.

Well now it is clear they don’t care. Liberal cabinet minister Glenn Murray selectively quoted from the Catholic Catechism last week. He read the part saying that homosexual acts are “intrinsically disordered” a fancy way of saying they are not the normal way sex is performed. As a gay man Murray obviously would object to that and many of you might as well. But here’s what Murray said next that should worry everyone.

“I have to say to the bishops: ‘You’re not allowed to do that anymore.’”

He is now trying to dictate and bully a religion on what its doctrine should be.

He wants to tell Catholics what they can believe, what they can say, what they can teach.

You don’t need to be Catholic to be concerned that the Ontario government has gone from being co-parent to co-pastor as well.

Forget separation of church and state, in Ontario the McGuinty government will tell you what to believe in your house of worship.

Like the Redford government in Alberta trying to tell homeschooling parents and private schools what they could teach, even about faith, this is disturbing but not a surprising step for the progressive left.

At its heart, this is about control.

Read the whole thing.

Brian Lilley actually talked about this issue on Sun TV, with another Canadian conservative Michael Coren. The video is worth a look.