Is College Worth It?

 If a Harvard Degree is So Valuable, Why Not Franchise It?

But what if higher education is really just the final stage of a competitive tournament? From grades and test results through the U.S. News & World Report rankings of the colleges themselves, higher education sorts us all into a hierarchy. Kids at the top enjoy prestige because they’ve defeated everybody else in a competition to reach the schools that proudly exclude the most people. All the hard work at Harvard is done by the admissions officers who anoint an already-proven hypercompetit...

 Student Loans will Exceed $1 Trillion

Two things, however, are clear. The size of student debt is vast (see chart), and lots of borrowers are struggling. More than 10m students took out loans for the latest academic year, according to a report issued on October 26th by the College Board, a consortium of academic institutions. Almost a third of students graduating from college, and 69% of the ones dropping out, hold debt tied to their education. The total amount of debt is staggering. The New York Federal Reserve Bank puts it at ...

 Universities Targeting Out-of-State Admissions for Tuitio...

Colorado Mesa University was typical of most public institutions in the fall of 2007, with out-of-state students making up a small number, about 5 percent, of the overall student body. But when the economic downturn hit in the fall of 2008, and state support for higher education began dwindling, Colorado Mesa President Tim Foster knew it was time to shake up the status quo. He decided to aggressively recruit out-of-state students, who pay 50 percent to 60 percent more than do Colorado residen...

 College Tuition Becoming Unnaffordable

[Report from the National Center for Public Policy and Higher Education] found, published college tuition and fees increased 439 percent from 1982 to 2007 while median family income rose 147 percent. Student borrowing has more than doubled in the last decade, and students from lower-income families, on average, get smaller grants from the colleges they attend than students from more affluent families. [...] “The middle class has been financing it through debt,” he said. “The scenario has be...

 PhDs Lack Skills for Surviving Outside Academia

Inefficiency arises from the fact that substantial resources have been invested in training these scientists and engineers. The trained have foregone other careers – and the salary that they would have earned – along the way. The public has invested resources in tuition and stipends. If these ‘investments’ are then forced to enter careers that require less training, resources have not been efficiently deployed. Surely there are less expensive ways to train high school science teachers than to...

 PhD Leaves You Unprepared for Non-Academic Work

The truth is that a life science PhD leaves you poorly prepared to get a job doing anything else: 1) Grad programs put very little emphasis on developing writing skills – you maybe write 4-5 documents (proposal, 2-3 papers, plus thesis) over seven years of grad school, with very little feedback on quality of the writing itself. 2) Life science PhDs lack quantitative and computer skills – your physicist or comp sci peers will leave you in the dust when it comes to filling non-science ‘quant’...

 Law School is a Cash Cow

In the Wonderland of these statistics, a remarkable number of law school grads are not just busy — they are raking it in. Many schools, even those that have failed to break into the U.S. News top 40, state that the median starting salary of graduates in the private sector is $160,000. That seems highly unlikely, given that Harvard and Yale, at the top of the pile, list the exact same figure. [...] IT is an open secret, Professor Henderson and others say, that schools finesse survey informat...

 The Cultural Problems with Academia

Like any good bubble, this belief– while rooted in truth– gets pushed to unhealthy levels. Thiel talks about consumption masquerading as investment during the housing bubble, as people would take out speculative interest-only loans to get a bigger house with a pool and tell themselves they were being frugal and saving for retirement. Similarly, the idea that attending Harvard is all about learning? Yeah. No one pays a quarter of a million dollars just to read Chaucer. The implicit promise is ...

 People Don't Need Advanced Degrees

Forty-five percent of people who go to college, four year colleges, don't get a bachelors degree within six years. Those people often have met with disappointment and their investment isn't particularly good, necessarily. Another group of people graduate from college and then have trouble getting jobs and end up taking jobs for which a college education is not really a prerequisite. Twelve percent of the male carriers in the United States today have college degrees. And I have nothing against...

 If You Do Get a Degree, Double-Major in Something Useful

Well, the value of graduate school really depends on what you are studying and what you expect to get out of graduate school. I encourage young people to engage in the act of dynamic thinking. That means don't just apply the rules that worked in your field 20 years ago. Journalism is a great example. The media has changed dramatically. I run a media company. I'm in media all the time, and the biggest mistake a journalism major can make is to allow 1985 thinking to dictate how they pursue thei...

 College-Graduates have a Lower Unemployment Rate

We looked at the website of the Bureau of Labor Statistics, which calculates the national unemployment rate as well as unemployment rates for various subgroups. Those subgroups include Americans of four specific educational attainment levels. They are: less than a high school diploma; a high school diploma but no college; some college experience but no college diploma; and a college diploma. For those with less than a high school diploma, the seasonally adjusted unemployment rate was 13.8 pe...

 Debt Makes College a Risky Investment

Our findings, especially those that examine household decision-making, emphasize that while the return to higher education is high, it is not a safe investment for many households. The deterrent effect of risk survives the ability of agents to feasibly debt finance college with student loans. The main force here is that debt makes higher education riskier for student borrowers, suggesting that alternatives that are mindful of risk may be more effective. In turn, the focus of the policy experi...

 High Rates of Return on College Education Comes with High...

Attending college has been considered one of the most protable investments, annualized returns ranging from 8% to 13% (Card 1999). I utilize a simple approach, as in Mehra and Prescott (1985), to quantify how much of the excess return to college is explained by its risk. I also explore the role played by heterogeneous ability by developing a life-cycle model with endogenous enrollment and analyzing the dropout risk effect on college returns. Under the risk premium approach, the permanent inc...

 Professors Come from a Select Few Universities

The evidence is not only anecdotal. A recent study by Aaron Clauset, Samuel Arbesman, and Daniel B. Larremore shows that “a quarter of all universities account for 71 to 86 percent of all tenure-track faculty in the U.S. and Canada in these three fields. Just 18 elite universities produce half of all computer science professors, 16 schools produce half of all business professors, and eight schools account for half of all history professors.” This study follows the discovery by political scien...