understanding politics, considerations

How to Fix Education and College Loans


April 29th, 2009 · Business, Economics, and Finance

education college loansMark Tay­lor makes some astute points about edu­ca­tion, col­lege loans, and grad­u­ate school in the United States:

The dirty secret of higher edu­ca­tion is that with­out under­paid grad­u­ate stu­dents to help in lab­o­ra­to­ries and with teach­ing, uni­ver­si­ties couldn’t con­duct research or even instruct their grow­ing under­grad­u­ate pop­u­la­tions. That’s one of the main rea­sons we still encour­age peo­ple to enroll in doc­toral pro­grams. It is sim­ply cheaper to pro­vide grad­u­ate stu­dents with mod­est stipends and adjuncts with as lit­tle as $5,000 a course — with no ben­e­fits — than it is to hire full-time professors.

In other words, young peo­ple enroll in grad­u­ate pro­grams, work hard for sub­sis­tence pay and assume huge debt bur­dens, all because of the illu­sory promise of fac­ulty appoint­ments. But their eco­nom­i­cal pres­ence, cou­pled with the intran­si­gence of tenure, ensures that there will always be too many can­di­dates for too few openings.

I have always been a firm believer in acquir­ing knowl­edge for knowledge’s sake — a pop­u­lace edu­cated in lib­eral arts is one that, for obvi­ous rea­sons, can con­tribute to soci­ety in gen­eral as well as help­ing the indi­vid­u­als them­selves. But the fact remains that the returns on col­lege and grad­u­ate school are grow­ing smaller and smaller in exchange for a cost that is steadily increasing.

As I have writ­ten before, my gen­er­a­tion was repeat­edly told that we needed to get a col­lege degree to become suc­cess­ful (at least in middle-class, white-collar terms). So every­one went to col­lege. But as the sup­ply of bachelor’s degrees sky­rock­eted, the value declined. (Sup­ply and demand, any­one?) The job mar­ket was flooded with peo­ple with B.A.s in every­thing from Eng­lish to his­tory to lit­er­a­ture. (Even if our stud­ies would not per­tain to our future jobs, our diplo­mas would sup­pos­edly prove that we had the abil­ity to pur­sue some­thing like a four-year degree seriously.)

In response, many of us chose to go to grad­u­ate school to gain a com­pet­i­tive advan­tage with our M.A.s in Eng­lish or his­tory or lit­er­a­ture. So we were left with thou­sands of dol­lars in student-loan debt and degrees that, as Tay­lor notes, had lit­tle prac­ti­cal use. After all, not every­one who goes to grad­u­ate school for a degree in some­thing other than law, busi­ness, or med­i­cine wants to be a pro­fes­sor (even if there were many of those jobs available).

The solu­tions are sim­ple. First, not every Amer­i­can should go to col­lege. Amer­i­can cul­ture has wrongly viewed white-collar jobs as inher­ently supe­rior to blue-collar ones. (How many par­ents would have reacted with hor­ror if their teenagers announced that they did not want to go to col­lege?) There is noth­ing wrong with going to a tech­ni­cal school and learn­ing a use­ful trade. Teenagers with apti­tudes and inter­ests in these fields should be helped and encour­aged to go there. As Matt Damon’s char­ac­ter points out in “Good Will Hunt­ing,” every­thing one can learn in col­lege can be found at the local library. Such prac­tices would allo­cate Amer­i­can society’s resources wisely. A func­tion­ing coun­try needs plumbers and engi­neers along with man­agers and CEOs. If the demand for col­lege would decrease, so would the cost for those who do study there.

Sec­ondly, no one should go to grad­u­ate school for lib­eral arts in the hopes of help­ing their careers. More often than not, it is a waste of money. See again the point from “Good Will Hunt­ing.” Grad­u­ate school should focus on law, med­i­cine, and busi­ness as well as spe­cial­ized fields like engi­neer­ing. Pro­grams in lib­eral arts should be down­sized and geared towards a small, select group of high-achieving stu­dents who will be primed to take over the small num­ber of pro­fes­sor­ships that will be avail­able in the future.

As Tay­lor rec­om­mends later in his col­umn, tenure needs to end as well. A lack of com­pe­ti­tion in any mar­ket — from the high-tech indus­try to higher edu­ca­tion — only sti­fles growth and inno­va­tion. More­over, my gen­er­a­tion is suf­fer­ing from a lack of nat­ural turnover. In com­pa­nies and lec­ture halls through­out the coun­try, young work­ers and pro­fes­sors are unable to advance their careers because those in the older gen­er­a­tions are refus­ing to retire. It is time for this to end. With­out higher posi­tions and increas­ing salaries, we will never be able to get mar­ried, raise fam­i­lies, and do all of the things that soci­ety needs us to accomplish.