"Student Loans Are Broken: This Company Just Raised $100 Million to Fix Them," by J. J. Colao (Forbes)
Money Quote: "'The federal government is pricing loans as a one-size-fits-all-solution,' explains [David] Klein, 33. 'They're not pricing loans appropriately for the most creditworthy.' This means that an MBA student at Harvard often pays the same rate as a student at a much less selective program, even though their earning potential and employment prospects differ dramatically."
The article discusses CommonBond, a student lending company that just raised $100M. It plans on offering student loans below what the federal government is charging by cherry-picking good students from great degree programs which presumably have a lower default rate. What do you think? Should the government get out of student lending and/or guaranteeing entirely? Would the market do a better job of not creating education bubbles? Will this just leave the bad risks on government's shoulders? Would this create social problems? Is this the future?
Weil Gotshal & Manges Partner Harvey Miller discusses the future of law school in the U.S. with Tom Keene on Bloomberg Television's "Bloomberg Surveillance.
How in touch is he?
"Some law schools report increasing enrollment, citing low tuition and increasing financial aid," by Debra Cassens Weiss (ABA Journal)
Money Quote: "Some law schools are reporting increasing enrollments even as the number of applicants dropped 12% this year."
Again proving that there is one born every minute.
"Insider's View of For-Profit Colleges, Race, Class and Education Justice," by Tressie McMillan Cottom (Huffington Post)
Money Quote: "I was never proud of my work at ITT. I sold associates degrees that cost approximately $30,000 and bachelor's degrees that cost almost exactly double, $60,000. Worse, I witnessed admissions counselors, financial aid counselors, and management act from a belief not unlike the one articulated at Kaplan University. Most memorable was a September sales meeting where we were told that autumn is an excellent time to close these 'losers' because they will be depressed about their friends going away to college."
Professor Cottom has an article in the September/October 2013 issue of Mother Jones but I can't find it anywhere on-line. I did find this Huffington Post piece which is similar. Should we start calling law schools' "Admissions Office" the "Sales Department"? Do you think TTT Sales Departments refer to their prospective sales leads as losers, or at least think it? Do they call them lemmings behind their backs?
And thanks to Anonymous from the prior post who forwarded these NBC links:
as follow up to the story about the young attorney holding down three part-time jobs while living at home with his parents. Remember the future is in energy drinks.