Very surprised that colleges would be closing around the country.

[Drama Queen]

Maybe Sweet Briar College (mentioned in the article) is too specific in catering to women only??

I suspect a school like U. of Va. could gobble up this school on the cheap and have a satellite campus. Like other businesses, maybe this will be a trend in education.

http://www.msn.com/en-us/money/careersandeducation/why-more-us-colleges-will-go-under-in-the-next-few-years/ar-AA9ZDtl

[RSE]

Here is how it all got f-ed up:

1. Because the federal government makes most student loans, taxpayers are on the hook for most student loan debt if the student/graduate cannot repay.

2. Most student loan debt is nondischargeable in bankruptcy.

3. Because of 1 and 2, student loans are readily available irrespective of any credit decision by the lender.

4. Because of 1, 2 and 3, colleges have raised tuitions up and out the wazoo.

5. Because of 1, 2, 3 and 4, fewer students are applying to private schools, and those that are are looking for bargains (i.e., scholarships and grants, free money).

6. Because of 1, 2, 3, 4 and 5, college endowments are taking a hit.

[GroundedBird]

... and, in the conflict of interest area...

University endowments and teachers’ pension funds are among big investors in Sallie Mae

http://www.msnbc.com/all-in/sallie-m...h-your-college

[Susquehanna Birder]

The whole college tuition thing is a ridiculously artificial economy. Much like with the insurance industry, processes that were put in place to "help" the customers have allowed rates to be driven up. And the system is now eating itself alive.

Now folks are calling for Uncle Sam to bail the whole thing out and provide "free" college educations. Yikes.

[Drama Queen]

I think you nailed it and its not fair. I never gave much thought that step 5 and 6 would be an occurrence.

The article doesn't discuss schools getting bought out by others, but a place like Meredith college near NC State would be a perfect purchase... Goucher College near Towson University. I'll be interested to see if purchases transpire in the future.

[JuTMSY4]

pretty much

Here is how it all got f-ed up:

1. Because the federal government makes most student loans, taxpayers are on the hook for most student loan debt if the student/graduate cannot repay.

2. Most student loan debt is nondischargeable in bankruptcy.

3. Because of 1 and 2, student loans are readily available irrespective of any credit decision by the lender.

4. Because of 1, 2 and 3, colleges have raised tuitions up and out the wazoo.

5. Because of 1, 2, 3 and 4, fewer students are applying to private schools, and those that are are looking for bargains (i.e., scholarships and grants, free money).

6. Because of 1, 2, 3, 4 and 5, college endowments are taking a hit.

They way I see it, you either nationalize the university system and provide socialized education or you pull the feds out of the post-secondary education business altogether. The hybrid is a disaster for everyone.

[RSE]

Law School is the biggest scam running now. I won't go into why but it's easy to do internet research to find out.

Do not go to law school. Do not send your children to law school. If you have a friend who is considering law school or has a child considering law school, tell them don't. Don't go by the experience of the lawyers here. We pulled the ladder up behind us. 90% of law school graduates are screwed and those who aren't will likely work their asses off.

[McCarthy12]

Who knows what it will be like when my kids are that age, but I would strongly discourage my kids from going to law school.

I was probably about two years away from either being partner at the small firm I was at or opening my own shop but when I compared the amount of work it would take vs. the amount of money I was likely to make against those same variables in other lines of work, it wasn't worth it and I got out. Granted, my law degree and practice experience helped me get the job I have now, but I could have easily started out in the field I'm in now and would be doing just find without having gone through law school.

[McCarthy12]

I think there should be a greater emphasis on vocational and trade schools. Erase the stigma attached to them and encourage people to go that route if it's a better fit, instead of forcing everyone into college and increasing demand and price.

And the two "free" years of community college is insane. It will only exacerbate the problem.

[IronEagle]

Here is how it all got f-ed up:

1. Because the federal government makes most student loans, taxpayers are on the hook for most student loan debt if the student/graduate cannot repay.

2. Most student loan debt is nondischargeable in bankruptcy.

3. Because of 1 and 2, student loans are readily available irrespective of any credit decision by the lender.

4. Because of 1, 2 and 3, colleges have raised tuitions up and out the wazoo.

5. Because of 1, 2, 3 and 4, fewer students are applying to private schools, and those that are are looking for bargains (i.e., scholarships and grants, free money).

6. Because of 1, 2, 3, 4 and 5, college endowments are taking a hit.

I'm with you up to number 4. Number 5 I can't agree with since so many colleges are accepting foreign students that have money. That may be the problem.

We had a f*ckload of Kuwati potential terrorist students in my class at Cornell in the 80's. Were they terrorists? No, they were just children of incredibly rich families.

[JuTMSY4]

I wonder how Redtib, Esq - Chinese Furniture expert is doing

[Mt Iggle]

And if you don't pay your student loans, if provided by the Federal Govt., then they can collect it back out of your social security benefits, those years later. (limited to 15% of benefits)
So, they will not go away, without one doing something, which most won't.
This resulted from one line in a 2010 law, as I understand it.

[Mt Iggle]

I believe that there are even more now.
I get that from my brother at the New School in NYC.
Otherwise - how would I personally have a clue?

[slag]

Oh, perhaps they were ... according to articles I've read, U.S. Treasury officials have stated that Kuwait is a major conduit for private money (for example Wahhabi money from Saudi Arabia) being funneled to terrorist groups in Syria including ISIS.

[IronEagle]

Oh, perhaps they were ... according to articles I've read, U.S. Treasury officials have stated that Kuwait is a major conduit for private money (for example Wahhabi money from Saudi Arabia) being funneled to terrorist groups in Syria including ISIS.

Cornell is just a hotbed for terrorism. I guess I'm a terrorist too.