Financial hits pile up for colleges as some fight to survive

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Colleges across the nation are scrambling to close deep budget holes and some have been pushed to the brink of collapse after the coronavirus outbreak triggered financial losses that could total more than $100 million at some institutions.

Scores of colleges say they’re taking heavy hits as they refund money to students for housing, dining and parking after campuses closed last month. Many schools are losing millions more in ticket sales after athletic seasons were cut short, and some say huge shares of their reserves have been wiped out amid wild swings in the stock market.

Yet college leaders say that’s only the start of their troubles: Even if campuses reopen this fall, many worry large numbers of students won’t return. There’s widespread fear that an economic downturn will leave many Americans unable to afford tuition, and universities are forecasting steep drop-offs among international students who may think twice about studying abroad so soon after a pandemic.

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How An Unlimited Supply Of Borrowed Cash Is Destroying Higher Education

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Both of us grew up poor. College was our way out of poverty. Now, we see too many young people locked into poverty by a college education.

“You have to go to college” was an article of faith when we were growing up in poor families. Now we wonder if our ticket out of poverty still has the same value. Far too many of this generation are leaving college with substantial debt and few meaningful job opportunities.

Put a little differently, what is the value of a bachelor’s degree in women’s studies or sociology or any other fields that are not science, technology, engineering, mathematics, or business? Ask some of the young people working at your local coffee shop or favorite restaurant. They will probably tell you, “not much.”

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Here’s how higher education dies

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A futurist says the industry may have nowhere to go but down. What does the slide look like?

Maybe higher education has reached its peak. Not the Harvards and Yales of the world, but the institutions that make up the rest of the industry—the regional public schools who saw decades of growth and are now facing major budget cuts and the smaller, less-selective private colleges that have exorbitant sticker prices while the number of students enrolling in them declines.

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This generation has a huge and growing student debt burden. It’s not who you think

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A recent analysis of American debt revealed a startling shift: Borrowers between the ages of 45 and 74 now owe more money in education-related debt, on average, than do younger college graduates.

People under age 35 with student debt owe $32,900 on average, according to data from the Fed’s 2016 Survey of Consumer Finances. That debt number is higher for every other 10-year age bracket up to age 75: It peaks at $37,000 for 45- to 54-year-olds, but even 65- to 74-year-old borrowers owe an average $35,400.

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Why college tuition really costs so much

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It used to be that baby boomers paid for college with the money they made from their summer jobs, but then, over the course of the next few decades, public funding for higher education was slashed.  Forcing the millennial generation to take on crushing educational debt loads, because these radical cuts forced universities to raise tuition year after year.   Continue reading… “Why college tuition really costs so much”

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The number-one state with the highest public-college tuition is…

Where do students have it worst?

Student debt is a national problem that affects all 50 states (51, if you count D.C.). The amount and frequency with which undergraduates borrow varies vastly from state to state, some of which are far better at providing an affordable education than others.

 

 

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It all comes down to money when picking a college and major

Nearly half of adults are limiting their child’s college choices based on price.

Families are cost-cutting before their kids even apply to schools because of the financial burden of paying for college. According to a new survey by Discover Student Loans, And it’s affecting students’ decisions about not only where to go, but what to study.

 

 

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U.S. government student loan policy reaping $51 billion profit

At $1.1 trillion, student debt eclipses all other forms of household debt, except for home mortgages.

The U.S. government is forecast to turn a record $51 billion profit this year from student loan borrowers, a sum greater than the earnings of the nation’s most profitable companies and roughly equal to the combined net income of the four largest U.S. banks by assets.

 

 

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Are student loans wrecking the economy?

Student debt is a dangerous bubble that is piling unprecedented levels of debt on young people.

Houses and cars power recoveries. And young people aren’t buying either. That’s a New York Fed study conclusion and that can be easily read as blaming student debt for holding back the recovery by squashing home and auto sales.

 

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