Is a Prestigious College Worth It? More Importantly, Would You Believe What These People Have to Say About It?

With the state of unemployment today, one must ask whether a college education is worth it?  Since most people view college as a non-negotiable, the question becomes; is an Elite College worth it?
So, once again, the ineffectual New York Times examines the issue by quoting studies conducted by... guess who?  Elite college educators.  Should we buy their self-serving studies?  Here's some of the notable points:

...One of those authors, Scott L. Thomas, a sociologist who is a professor of educational studies at Claremont, said high school students and their parents should take any attempt to apply broad generalizations to such personal choices with a grain of salt.

“Prestige does pay,” Mr. Thomas said in an interview. “But prestige costs, too. The question is, is the cost less than the added return?”

Among the most cited research on the subject — a paper by economists from the RAND Corporation and Brigham Young and Cornell Universities — found that “strong evidence emerges of a significant economic return to attending an elite private institution, and some evidence suggests this premium has increased over time.”

“Education is a long-run investment,” said Professor Eide, chairman of the economics department at Brigham Young, “It may be more painful to finance right now. People may be more hesitant to go into debt because of the recession. In my opinion, they should be looking over the long run of their child’s life.”

I'm happy that RAND was involved because it's relatively objective.  Of course, it should be noted that "RAND is also the home to the Frederick S. Pardee RAND Graduate School, one of the original graduate programs in public policy and the first to offer a Ph.D."  So, I guess they are in on it too.  So, I credit them and discredit them in one paragraph. Lovely.
I don't know who is better suited to provide an unbiased study of the actual value of an elite college education.  However, I'm certain that educators will never tell you that an education, elite or not, is not worth the cost.  It's funny that these educators are cited in an article that directly affects them. It would be comical and absurd if car manufacturers were quoted in a story claiming that expensive cars are safer than inexpensive cars.  So why does an article like this make it into the esteemed New York Times? I'll tell you why, because we respect educators and colleges.  We expect that they will be honest and truthful when they have proven to be anything but.  Just look at the way they rip off students.  If you remember, in the post I did about No Sucker Left Behind, it's apparent that colleges see their students as an ATM.  A few examples, once again:

1. Bait and Switch Scholarship: The first year that I attended FYU (Fuck You University), I was given a scholarship based on ... hell, I didn't know. I had good grades in high school, so I assumed it was based on merit.  I filled out a FAFSA, and I got a scholarship.  At the end of first year, I filled out another FAFSA. I had a 4.0 (all of college actually)--so I assumed I would get the same financial package, but the scholarship was gone--POOF.  It was gone. I asked about it and I was told that it just wasn't available to me anymore. Classic bait and switch.  Give the freshman a great financial aid packages and pull out the rug from under them and they are stuck.  What are they going to do, transfer?

2.  FYU had an average sports team.  One year, the school made it to finals or playoffs or whatever they are called, and the next year, tuition went up by 20%.  As it turns out, the reason why schools give a shit about their sports team is NOT school spirit.  Rather, it's the greatest marketing tool ever.  If the team is doing great, then you can justify a hike in tuition.  Oh yah, alumna love to donate money to their schools when the sports team is doing well.

3.  Did you ever wonder why vital classes were offered only once a year, and not in the summer?  Why can't organic chemistry be offered every semester when it's the prerequisite to so many majors?  It's not JUST because the professors are lazy shits.  It's also because, if you don't fix your schedule perfectly, you're forced to enroll for one additional semester. I was wondering why so many people graduate from college in 5 years, rather than 4.  That's why!

In the end, I don't even care what the premise of the article is.  Educators would never discount a college education altogether, as they should, because they make too much perpetrating a fraud on America. The issue shouldn't be whether an elite college is worth it, it should be whether a college education is worth it.  They are nearly all over priced. College is a great experience, it's true.  But it doesn't make you more marketable.  It's a luxury, i.e. reserved for people who can afford it--but you'll never hear it from the educators.  Who would put themselves out of business?

25 of the Highest Paying Jobs Don't Require College Degrees

I must have covered this sort of story before, but it hurts every time I see it.  And the common denominator is the inability of Big Business to outsource the work:

...According to the U.S. Bureau of Labor Statistics (BLS), eight of the 10 fastest-growing occupations through 2014 don't require a bachelor's degree. And these jobs, which include health technology, plumbing, firefighting and automotive repair, are less vulnerable to outsourcing. After all, if a fire breaks out, you need the fire department to be a few blocks away, not halfway around the world.

Good point. That's why lawyers and factory workers are equally screwed.  So, here are the jobs. Read 'em and weep!


1. Air traffic controller: $102,030

2. Funeral director: $79,517

3. Operations manager: $77,839

4. Industrial production manager: $73,000

5. Transportation manager: $72,662

6. Storage and distribution manager: $69,898

7. Computer technical support specialist: $67,689

8. Gaming manager: $64,880

9. First-line supervisor/manager of police and detective: $64,430

10. Nuclear power reactor operator: $64,090

11. Computer specialist: $59,480

12. First-line, non-retail supervisors/manager: $59,300

13. Nuclear technician: $59,200

14. First-line supervisor/manager of fire fighting and prevention worker: $58,920

15. Real estate broker: $58,720

16. Elevator installer and repairer: $58,710

17. Sales representative, wholesale and manufacturing, technical and scientific products: $58,580

18. Dental hygienist: $59,790

19. Radiation therapist: $57,700

20. Nuclear medicine technologist: $56,450

21. Power plant distributor and dispatcher: $57,330

22. Fashion designer: $55,840

23. Ship engineer: $54,950

24. Detective and criminal investigator: $53,990

25. Commercial pilot: $53,870

I wish I were a Funeral Director.  Working with the dead has always appealed to me. Oh well!
Thanks BIDER tipster.  This particular tipster sends me stories all the time.  I really appreciate it. You should comment some time, girlie!

Do Your Children a Favor: Don't Send Them to College!

Hardknocks and I differ on the perceived necessity of college.  I think, and I'll let her speak for herself, that she believes it's valuable at a certain price. I think it's wholly unnecessary.  There's reasons for why I feel that it's unnecessary.  For one, I did the smart thing and stayed home for college.  Because of that shrewd move, I didn't get the "college experience" and do not value it.  No, I never did the "walk of shame" and I never up-chucked all over my dorm room. I think I'm a better person for it.  Secondly, my little sister was the "lazy one" who didn't do well in school.  She was the bane of my parent's existence.  She went to two years of college to appease them, then went into a business where college is not necessary (or where no one asks her about it) and she is more financially solvent that I am--by far.  So, I'm a little burnt on college. I believe in life experience. I travelled for an entire summer after college and learned more during that time, than college could ever teach me.  I advocate giving your children real life experience.  

So, Demosthenes of America sent me this article that supports my position.  He cites seven reasons why he, and others, should not send their children to college.  The bad news is that Mr. Altucher is taken, so I can't make a grab at him. He is so damn smart.  There is no good news.  So, are you dying to hear the reasons yet?  Here they are:

Here they are (my commentary in italics):

1. More than 60% of people entering college take more than four years to graduate. So whatever you think your kids are going to cost you to go to college, add 20% to 100%.  Actually, I know people that have stretched it out to 6 and more.  Sometimes, they aren't ready to be in the real world and sometimes the schools screw them into staying a bit longer.  See my post on No Sucker Left Behind.

2. The cost of the average college tuition has gone up nine-fold since 1976 versus seven-fold for health care and three-fold for inflation.  Yet the news focuses on the cost of health care.  Not to mention the fact that college doesn't get you nearly as far as it did in the 70s.

3. The differential in lifetime income between a college graduate and a non-college graduate over a 45 year career is approximately $800,000 (read on).  I'm pretty sure this stat has been totally debunked.  At the very least, it doesn't apply across the board. If you're less industrious youth with a B.A., you will earn less than an industrious youth sans B.A.  à la my sis.

4. If I put that $200,000 that I would've spent per child to cover tuition costs, living expenses, books, etc. into bonds yielding just 3% (any muni bonds) and let it compound for 49 years (adding back in the 4 years of college), I get $851,000. So my kids can avoid college and still end up with the same amount in the worst case.  Wow.  I think I would trade in my college education for that windfall when I'm 49.  Not that my parents paid for education... they didn't.

5. If smart, motivated, ambitious kids (the type of kids who get the most out of college) avoided college I'm sure the differential would be a lot less than $800,000 and may even be negative (i.e. they would make more if they avoided college and started going into the business world earlier).  See #3.

6. The average debt burden of a college graduate is $23,000. Up from $13,000 10 years ago. Students with professional degrees can see their debt burden go higher than $200,000. Total student borrowing has topped $75,000,000,000. It's too much for young adults just starting their careers.  Of course, props to Mr. Altucher for mentioning professional degrees,my brothers and sisters in the law who are saddled with over $100K of debt.  With less and less of a ROI, it's almost criminal to encourage your children to pursue law school on their own dime (plus interest compounded).

and the best point of all is the following, which includes options that I regularly reference (which I bolded and italicized):

7. Alternatives to spending $200,000 per kid so they can waste four years of their lives:

Give them $20,000 to start one to five businesses. Most businesses fail but that's OK. The education from the process lasts a lifetime and the network you build when you start a business will lead to many future jobs and possibilities.

Travel the world. That would be an education that pays many dividends and is much cheaper. Your kids can then go to college with a much more mature view of the world.

Work. They won't get the best jobs but they can make money, network, get a "hands-on" education, learn the value of money and go to college in their 20s when they can afford it -- and make every dollar worth it. Plus your kids will have a more clear idea of what they want to do in the world.

Volunteer. Let them see a side of life that is harder and where they can add value. An education like that is invaluable.

Do nothing but read. Get the benefits of a college education without paying the $200,000. I'd be happy to support a child that wants to home school a college education.

Please send this to all of your friends with children, or friends who plan on having children.  We need to do some major reprogramming of American minds when it comes to the necessity of an education.  

More Tidbits from the book, Higher Education? How Colleges Are Wasting Our Money And Failing Our Kids - And What We Can Do About It

A BIDER reader sent us an interesting statistic posted by author Sheril Kirshenbaum on twitter via the upcoming book "Higher Education?" which will be released tomorrow:

From 2005-07: 101,000 PhDs awarded & only 16,000 professorships created (via book Higher Education?) Recession undoubtedly increased spread 12:48 PM Jul 31st via web

So where are the 85,000 PhDs without an assistant professorship? They are likely writing blogs about their lives on public assistance, working as adjuncts, serving you fries at your local fast food joint, or sending out resumes as overqualified candidates for entry-level positions meant for GED and college graduates. I'm glad that this book seems to at least briefly touch upon the victims of the graduate school scam along with the college tuition scam. Maybe someone will someday write a serious book about the law school scam. I'm not holding my breath.

Several days ago, I briefly mentioned the book Higher Education? in a post about the college scam. With more information being revealed each day, I honestly cannot wait to get my hands on this book. I looked up the statistic and came across an interview with one of the Higher Education? authors, Claudia Dreifus, at More Magazine. This is a fascinating interview worth reading in its entirety, but I couldn't resist pasting some of the highlights below.

Why do you think a Harvard education may not be worth it?
First, it’s overpriced. Harvard has just raised its fee to over $50,000 a year, and that will trigger a cycle of increases throughout the system because Harvard sets the trend. Harvard says it’s raising the number of scholarships, and that’s well and good, but the overall effect of the tuition hikes on the rest of the system is thoroughly immoral—most schools are not nearly as well endowed and can’t award as much financial aid. I believe that the elite universities we call the Golden Dozen—Harvard, Yale, Princeton, Dartmouth, Penn, Brown, Columbia, Cornell, Stanford, Duke, Amherst, Williams—are, for the most part, overpriced prestige items.

But they have great faculty.
Over 70 percent of college teachers—even at top schools like Yale, Harvard and Stanford—are graduate students or adjuncts or gypsy visiting professors. That’s up from 43 percent in 1975. There are 181,000 teaching assistants at work in 280 research universities around the country. And it’s not just the elite colleges. Florida Keys Community College, for instance, has 24 full-time faculty and about 90 adjuncts per term. Using a contingent workforce costs the schools much less money. At Yale, for example, teaching assistants earn roughly $20,000 a year.

So the students are not taught by the stars?
Rarely. And this bothers me, because you’re cheating the young people.

Where are the adjuncts coming from?
Universities are overproducing PhDs way beyond levels anyone can use in this country. From 2005 to 2007, they awarded 101,000 doctoral degrees—but there were only 16,000 new assistant professorships created.

You criticize what you call “vocational training” at many colleges: Resort management. Equine science and management. Apparel and accessories marketing. Why does this bother you? Doesn’t it help kids get jobs?
I think 18-year-olds are too young to know what they’re going to do with their lives. We’re a rich enough society that we can give people four years to find themselves—to expose them for one brief moment to ideas and thinking, to take a hiatus from the world of commerce. We can afford an educated populace.

Even in these tough economic times?
Yes. It’s not a luxury to be educated.

What should colleges be concentrating on?
They should be exposing young people to the great ideas of the past and present, and they should be giving them a chance to stretch their minds. A return to the liberal arts: history, philosophy, English, physics. Science as a whole needs to be valued more on the undergraduate level. Too often science classes are taught by people who speak English too poorly to communicate clearly—all to save money.

What’s the solution?
De-emphasize professors’ need to publish and promote those who are good teachers. Abolish tenure. Pay adjuncts something like parity per course. Force professors, no matter what their ranking, to teach undergrads. Cap presidential salaries. And end sabbaticals: They’re a total waste of money—a raid on parents’ and students’ resources. If a professor wants to advance her career by writing a book, she should do it on her own time.

What can parents do?
The first value should be not starting your youngster off with five-figure debt. Consider alternatives to the most expensive schools. It’s not so important to be able to say, “My child is at Princeton.” What’s more important is to say, “My child has a good future,” which partly means a future without crippling debt.

Can any college deliver “a good future”?
A large number of CEOs of major corporations didn’t come from the Ivies but from second-tier schools. There are good things to be found anywhere; the system is big enough so there is something for anyone. The trick is to find the right match.

Giveaway Time: No Sucker Left Behind

Do you know a high schooler who is applying to college?  Are you applying to college?  Do you hate your alma mater and you can't put your finger on why?  Well, you need to read this book.

Even though I went to college a hundred of years ago, No Sucker Left Behind: Avoiding the Great College Rip-Off was a real education. It was an education on how my beloved college ripped me off and continues to rip off students every year. Had I known about some of the scams that colleges engage in to rip college students off, I may have broadened the scope of this blog. I actually was so focused on the big Law School Scam, that I had not thought about colleges and their lies that much at all.  

After reading this book, I realized that I had witnessed several of the scams first hand.

1. Bait and Switch Scholarship: The first year that I attended FYU (Fuck You University), I was given a scholarship based on ... hell, I didn't know. I had good grades in high school, so I assumed it was based on merit.  I filled out a FAFSA, and I got a scholarship.  At the end of first year, I filled out another FAFSA. I had a 4.0 (all of college actually)--so I assumed I would get the same financial package, but the scholarship was gone--POOF.  It was gone. I asked about it and I was told that it just wasn't available to me anymore. Classic bait and switch.  Give the freshman a great financial aid packages and pull out the rug from under them and they are stuck.  What are they going to do, transfer?

2.  FYU had an average sports team.  One year, the school made it to finals or playoffs or whatever they are called, and the next year, tuition went up by 20%.  As it turns out, the reason why schools give a shit about their sports team is NOT school spirit.  Rather, it's the greatest marketing tool ever.  If the team is doing great, then you can justify a hike in tuition.  Oh yah, alumna love to donate money to their schools when the sports team is doing well.

3.  Did you ever wonder why vital classes were offered only once a year, and not in the summer?  Why can't organic chemistry be offered every semester when it's the prerequisite to so many majors?  It's not JUST because the professors are lazy shits.  It's also because, if you don't fix your schedule perfectly, you're forced to enroll for one additional semester. I was wondering why so many people graduate from college in 5 years, rather than 4.  That's why!

These are just three of the scams that I found out about by reading No Sucker Left Behind.  It was a really enlightening book.  It's a must read for high school seniors!

So, here's the contest:  Think about college long and hard and write a blurb, in the comments, about how your college scammed you.  Be creative.  Or, if you can't think of a scam that applies to you specifically, just write about a college scam that you have identified.  If you become a follower of this Blog, then I will give extra consideration to your story.  If you don't feel comfortable telling me about your scam in the comments, then please email me your story and I will post it without your name--if you're the winner.   If I select your scam, I will post it and send you the book.  No restrictions on the age or location of the winner.  Anyone can enter.  Oh yah, no need to name your college.  

I will select a winner on July 30, 2010.  Good luck!