… in the Minneapolis Star Tribune notes that the most charitable description of what’s been going on at the clubby University of Minnesota medical school would be “bizarre.”
Friday, May 2, 2008
MoneyLaw: The Student Loan Bubble
Some people at the U (Bob, Tom?) don't seem to realize that the student loan debt of our graduates is a disgrace.
We hear things like:
“There have been a lot of false statements made about tuition increases. He [Sullivan] said the discussion should focus on the marginal average cost to students of a tuition increase, factoring in tuition discounting, scholarships, fellowships, and other financial aid support.”
Faculty Consultative Committee
Thursday, January 24, 200
What exactly are these false statements, Tom?
Maybe your experience as a law school dean has made you a little too cavalier about numbers that seem small to you - like $25,000. And this is just the average, some students owe considerably more. Most of our student do not have visions of sugar plums dancing in their heads. "Marginal average cost" might sound suave and impressive while sipping sherry at a law school reception, but most students seem to look at it from the eminently sensible viewpoint of how much they owe when they finally graduate.
This is what the discussion should focus on and how this influences what students do next, especially if they are the first in their family to go to college or university, and they and their parents are extremely concerned about this debt load. (I have a little experience with students in my lab in this kind of situation.)
According to Kiplinger (2008) here are the numbers:
Big Ten Public Universities
Ohio State $18,130
Michigan State $22,147
Penn State $23,500
Even if this means cutting back on the administration's plans for becoming one of the third greatest public research universities in the universe...
In terms of a first course in economics: It's a guns and butter situation, not one of marginal cost.