Question of the Week
Students that embody the American Dream are being turned away from major universities simply because their hardworking families cannot afford to pay the ever-increasing tuitions. Taxpayers are soon going to shelter $900 billion in college debt, yet they still can't afford to send their children to the top schools in America. Why isn't it up to these universities to fund the education of promising young students?
Students that embody the American Dream are being turned away from major universities simply because their hardworking families cannot afford to pay the ever-increasing tuitions. Taxpayers are soon going to shelter $900 billion in college debt, yet they still can't afford to send their children to the top schools in America. Why isn't it up to these universities to fund the education of promising young students?
Morning Commentary
Time for Big Schools to Put Skin in the Game
By Charles Payne, CEO & Principal Analyst
5/18/2015 5:44 AM
Over the weekend, we learned that Ronald Nelson, a student from Memphis Tennessee, was accepted into all eight Ivy League schools. He decided on the University of Alabama.
Despite his 4.58-weighted GPA and 15 AP courses, Ronald worried it would simply cost his middle-class parents too much to get him through an Ivy League school, none of which offered him merit scholarships.
So, this kid who is a homegrown American Dream gets kicked to the curb.
Don't get me wrong, the University of Alabama is a great school, but with his grades, imagine what he would become with Harvard's help.
|
Ivy League Cash |
|
|
School |
Endowment |
|
Harvard |
$32 billion |
|
Yale |
$20.8 billion |
|
Princeton |
$15 billion |
|
Columbia |
$8.2 billion |
|
University of Pennsylvania |
$7.7 billion |
|
Cornell |
$5.3 billion |
|
Dartmouth |
$3.7 billion |
Last week, I got similar news from my niece who was accepted into Columbia, but her working parents couldn't afford it, so she’s off to Temple. Why couldn't Columbia finance her degree? Consider all the industries that finance their products to customers.
They have the cash.
It seems to me if these universities have the gall to ask for the amounts they do for their degrees, it's about time to put their money up. With the cost of tuition going through the roof and the government looking to raise taxes on everything that moves to fund their profligate spending, it's time to consider moves that benefit everyone- where we all have skin in the game.
The Taxpayers share of college debt is racing toward $900 billion. Why should Main Street be on the hook when the same hardworking men and women can't even get scholars into great schools without putting up everything they own?
It's the Economy, Stupid
Is America in a recession? It's hard to remember the last time an important economic release came in better than expected. Moreover, many have been unmitigated disasters, including the industrial production on Friday.
We are seeing freefalling consumer confidence, slacking retail sales, and the probability of the first quarter of the Gross Domestic Product (GDP) being revised into the negative category is very high.
Ironically, the thing that might save the economy and the stock market rally is the slumping U.S. dollar.
Today’s Session
The big deal of the morning is Ascena Retail Group taking over Ann Taylor (ANN) for a hefty premium. This ahead of key retail earnings reports makes for interesting timing.
Equities are rudderless which isn’t here or there; just adds to anxiety that seems to be growing as investors are looking for something to cling onto.
| Comments |
| It's time students and their parents grasp reality. There's nothing wrong with going to a JC for 2 yrs. then going to a state college. for their 4 yr. degree. At a cost of about $25k. (a car payment). A 4 yr. degree shows a future employer 1 thing. The ability to learn. Mike T on 5/18/2015 9:09:15 AM |
| I've been a small biz owner since 2006. I have weathered some tough times. But Jan and Feb of 2015 have been the WORST EVER for me. Something doesn't feel right. It feels like 08 all over again. racindavid on 5/18/2015 10:02:12 AM |
| I think it is time for the big universities to go through a cost cutting phase. All the schools are overloaded with highly paid administrators and non teaching professors. Life on big campuses is too plush. MikeS on 5/18/2015 10:19:48 AM |
| When parents made their kids think that life evolved around going to Yale, Harvard etc. they created a demand and greedy colleges quickly supplied the demand. Many kids should go to vocational schools , not liberal arts colleges where they learn about the glory of socialism etc. racindavid 5/28/15 post, oh so true !!!!!!It does feel like O8 again. tom wayne on 5/18/2015 10:30:20 AM |
| Why not make the colleges named in student debt absorb the loss if students can'yt pay? (instead of us the taxpayers). We know that before the debt is "written off" the US Gov't makes the former student's life miserable anyway, ALSO that most of the debt is to "For Profit" places that are not really colleges, but only profit mills for the owners. Don Powell on 5/18/2015 10:37:30 AM |
| Some of the best educational opportunities in the world are available for free, as their governments and societies place a high value on education. Oddly, these are "socialist" economies/societies, but socialism has many variants. Why whine about these two students being priced out of those schools when you espouse absolute free markets? This recent column is somewhat hypocritical. You can't have it both ways. This economy is driven by corporate greed, not by any love for our fellow man, or desire for any measure of economic equality. I was sort of surprised that the column took a stance that slapped the hand of a corporation pricing their product to demand. odd. C Meyer on 5/18/2015 11:16:38 AM |
| It isn't up to the parents of the other students to pay the cost of educating talented students.Transfer of wealth again. Z on 5/18/2015 12:32:52 PM |
| Charles is RIGHT! I make just enough not to get any finical aid and with 2 in college, 1 in Jr. college and 1 just graduated Rutgers it's a big nut to crack. We have fallen far behind the world as a nation and need to make higher education available to our citizens. I like what Stanford did with family's making less then 125K, tuition is free! We as a nation need to wake up and educate our young for this countries future, if not it goes done the drain! Gary D on 5/18/2015 1:45:59 PM |
| I regularly send checks to a good university, not one of the Ivy Leagues, so that there will be financial aid available for students who need the help. I am sure that there are a lot of your readers in the boat with me. Maybe someone should conduct an investigation of those schools a billion dollars in their endowment funds to see if they are being properly used. Pete on 5/18/2015 1:51:57 PM |
| The interest off of Harvards' Endowment fund alone, could finance the education of it's students. A while back, a fellow made a case for suing all of the Ivy League schools for Anti trust, as he showed that their tuitions had risen in lock-step for the last 20 years..No competition , obviously, collusion at best... Macc on 5/18/2015 2:03:51 PM |
| Nothing has a better ROI than intelligent investment in human resources, yet we de-incentivize it by inflated college tuitions and saddling students with monumental debt right out of the gate. This is the most poorly understood part of economic growth. In fact, we abort more kids every year than we graduate with advanced and professional degrees. In short, we have an appallingly low regard for the value of human resources. It may be the #1 reason we are in such trouble. Dennis Howard on 5/18/2015 2:07:21 PM |
| It's time to redefine the "best" schools. Notice where the CEO's of the big banks in the 07-08 bailout went to school. I believe Ronald made a good choice. Bo on 5/18/2015 2:41:08 PM |
| If things continue on this tack, soon a three-eared giraffe, by virtue of diversity, will have a better chance of admission to elite schools than someone academically qualified, like Ronald Nelson. The next step will be to combine elite schools with zoos in recognition of their shared interest in exhibiting a wide variety of creatures. Patricia Flynn on 5/18/2015 4:32:42 PM |
| Sorry to tell you Charles, but you are way off base. You blew it in the first eight lines of your story. Poor boy got "kicked to the curb" and has to attend the University of Alabama. What a shame! I'm sure all the people in Tuscaloosa are real happy with you right now. I'm an Auburn man so I don't have a lot of love for the U.of Alabama, but I can tell you for sure it is one of the finest universities in America. Do you know where the head man at Apple graduated? It wasn't the U. of Alabama (try Auburn). I'm pretty sure that there are more heads of large corporations from outside the Ivy League Schools than from inside. Ronald Nelson will be better served by going to the University of Alabama (or most any SEC school)than going to one of the Ivy League Schools. There is more to life than spending four years or more with egg heads with whom you have nothing in common. The part of your article about college costs is certainly right on. The colleges are being run just like the U.S. Government. The top people in the universities keep voting themselves more money. It is just like the government from the standpoint that the top people keep giving those down below whatever they want in order to be praised by those below. The uneducated citizens then think these must be wonderful people so they don't complain. It is just like the welfare system. Keep giving us whatever we want and we'll keep voting for you. Jack W. Poole on 5/18/2015 6:26:41 PM |
| Stanford and the Ivy league have become social justice institutions, not educational institutions. Social justice is expensive. William hutchinson on 5/18/2015 7:00:49 PM |
| Charles ... when I was reading your comments I immediately thought of doing some research on how large the endowments are in the Ivy League... we all have heard of Harvard's. Then I spotted that you listed them. One of my pet peeves is the abuse of the "Non-Profit" institutions... be they Endowments, Foundations by celebrities, athletes & politicians. IRS Form 990 are available online to get an idea of where the money goes. Most of the time a high percentage goes to 5 Star Hotels, international travel and meetings of one's "entourage" to 'give back' !! I would like to know how much of the Ivy League endowments go to student tuition vs funding "chairs" of professor, stipends to employees & unrelated uses of the donations & earnings. Bob S on 5/19/2015 11:36:57 AM |
| A master degree from an Ivy League university is worth more and costs less than an undergraduate degree from the. An undergraduate degree is around 120-128 credits; a graduate degree is 30-45 credits. A graduate degree goes first on the resume. A student who goes to a non-ivy college can graduate without debt.n do the ,at Mr. Paine. Dr. Joyce Faison on 5/19/2015 5:01:31 PM |
| The colleges have become a business or cult like controlled learning experience..to increase college influence. Jim on 5/20/2015 4:35:10 PM |
| This is a serious suggestion. Rather than ask colleges to subsidize students with tax dollars, reduce expenses. For example, Some of the best college instructors I had were grad students. Consider limiting professors' income and benefits to some reasonable amount, perhaps 150% that of the average income in that community. I have often figured a grad student would jump at a chance to work 9 months for lets say $60k right out of college. this would provide an income sufficient to live on, plus discretionary spending or investment. Russ Hageman on 5/21/2015 5:16:54 PM |
| This is a serious suggestion. Rather than ask colleges to subsidize students with tax dollars, reduce expenses. For example, Some of the best college instructors I had were grad students. Consider limiting professors' income and benefits to some reasonable amount, perhaps 150% that of the average income in that community. I have often figured a grad student would jump at a chance to work 9 months for lets say $60k right out of college. this would provide an income sufficient to live on, plus discretionary spending or investment. Russ Hageman on 5/21/2015 5:16:55 PM |
| A while back you publish a graph showing the increases of incarinated prisoners, the trend showed a steady rise of the years-HOWEVER YOU FAILED TO SHOW THE RISE IN POPULATION on the same chart, there must be a clear rise there too, it would be better to show prisoners by % of population. Joe cayman on 5/25/2015 7:58:59 PM |
| Want a FREE Collage education? Join the Military, even enlist in the RESERVES and they flip the bill, STOP COMPLAINING ABOUT NOT BEING ABLE TO AFFORD COLLAGE. Joe cayman on 5/25/2015 8:05:10 PM |
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