The Greed Crisis In America's University System
Why I Am Pissed Off
Every so often I run across a news article that pisses me off. Rather than write my congressman, I take out my frustration by writing an essay. Here is a report that raised the hackles on the back of my neck. I hope this essay will do the same for you.
I assert that greed has overtaken America’s University system. Our once honored educational institutions, were a pristine system previously dedicated to uplifting the country by educating its future leaders. But these once powerful institutions of higher learning have gone the way of all flesh. They have been swallowed up by the twin malefactors of greed and avarice.
The University system in this country is out of control. It could be because Universities, unlike banks and Wall Street, have no oversight. Universities are not regulated. Why do we not have a Federal Education Commission with the power to stifle runaway greed and profiteering in our University system?a
The Facts
Let’s look at some facts as reported by U.S. News and World Report in its January 13, 2015 issue. According the magazine,
• The average college or university endowment was $355 million at the end of fiscal 2013.
• The article listed a large number of Universities that doubled their tuition in 2015
• Harvard’s financial endowment grew to $32.7 billion at the end of fiscal 2013, up from $30.7 billion the previous year (a $2 billion increase in one year). That’s probably just the interest on its investments.
An endowment is “that part of an institution’s income derived from donations.” How much of Harvard’s, $32.7 billion has gone towards reducing student tuition? Alternatively, how much of it has gone into an aggressive construction and real estate acquisition program?
Just using Harvard as an example, with $32.7 sitting in a bank or invested in various enterprises, do you think the University has done something meaningful by doubling its student tuition to today’s $45,000 per year, up from $20,000 in 1995 when my son graduated from Harvard?
What Have They Done For Students Lately?
The answer is no, hell no !! That institution, along with many other colleges and universities, has done nothing meaningful or honorable, except to create a new pool of students who can’t afford to attend its hallowed halls. On the other hand, could it be that Harvard and the other universities have sidled up to the “Student Loan” feeding trough and sucked money out of the marrow of students.
I guess it is okay if Harvard and the rest of the educational charlatans shift money from the banks to their pockets (or their massive construction projects). I guess it’s okay to let students spend a large portion of their lives pouring money back into the banking system over time. I guess that is what they call a guaranteed annuity. It seems like a massive fraud to me.
Maybe Bernie Madoff is a secret financial planner and consultant to the universities and banks. Maybe this is his way of earning some extra cash while he serves his 150-year sentence.
Oh well, maybe what we don’t know or care about won’t hurt us.
If you are as outraged as I am by the obvious greed and avarice demonstrated by the core systems (or institutions) that are part of the bulwark of our society such as healthcare, big Pharma, education, big business, congress, etc., then let’s let our voices be heard !!!
With technology, you would think that the number of administrators required to support students would drop. It hasn't it has increased. Partly due to government regulations requiring compliance records and reporting.
The other part of it is that if a college reduces tuition, they can't justify the ever increasing demands for funding.
It's become big business. Hiring more administrators, staff, and creating more offices or departments that may or may not be necessary to an individual's education.
There's also a decided lack of interest in education itself. Student to teacher ratios has increased or remained stagnant. Students are not necessarily receiving the individual attention the need to succeed.
I know at least one state university here where the teachers or the university itself has lowered their expectations in certain areas and now teach basics and have open book tests in certain subjects. Although that maybe more of a "self-steem" issue with not requiring students to pass certain classes based on merit. After all who needs to have a basic understanding of US history and why we are where we are today?
Sorry, long rant. College tuition is getting outrageous even at the community college and state level.
Thanks @patrice for your thoughtful comments. They add another dimension to this discussion of the serious trouble that our education system is in -- add empire building to the list of of ills. It goes on and on.
It's absolutely ridiculous. The quality of the education goes down and the price goes up! Now every moron can walk around thinking they know everything in the world because they have a college degree.
The ones that study hard and actually learn something are now burdened with an ever increasing debt load that they probably won't even pay off until they are 40!
I am just glad I never went to college, and now I am 2 years and 5 months from retirement, which will be when I am 37.
Its sad but true, some people think a college education is the end all, be all. What I learned is college is how little I actually know and the vast amount there was to know. When I sent my three boys to college, I warned them that it was only a ticket to some places that think college is important. Congrats on your pending retirement. It sounds like you took the smart route, just as Bill Gates and many others did.