As with most of your predictions, I'll take this one with a grain of salt.

The Ivy League, with their huge endowments, will never go under, at least not in my or my children's lifetimes.

as of today.

had around 35 Billion and lost 10 billion. If the USA elects another idiot republican like Bush II *who knows what market volatility will occur?

Who knows where Harvard will be in a shaky world 5-10 years from now?


*Unregulated capitalism has a tendency to fuck itself up with greed, corruption and politicians that let it happen. What havoc will TPP have on our economy and the consequences and ripple effects could be disastrous.

They can attract rich students from anywhere, and get them to pay at a profitable rate. The endowments mean they can spend hugely on facilities, and keep admitting non-rich Americans to keep a bit of a "we're in this for the public good" image, but they'll remain, maybe more elitist, maybe less, while the American government does.

TPP won't wreak havoc on the economy; it will (if passed) tighten the grip of multinational corporations, which doesn't hurt Harvard et al at all.

They were annoyed with him about that when he was not pissing off the feminists.

Austerity for them would be the normal for a public university.

Of course, if the federal government would condition or shut off the money flow, the so-called elite schools would be gone in a hurry.

The total amount is a bit less than the total amount of subprime mortgages at the height. It's about $1T for student loans and subprime was $1.3 or so, I believe. There's also the issue that 85% of student loan debt is held by the federal government. The federal government is nothing like a private actor, in that it can't go broke. You'd be very unlikely to see a systemic crisis because the size of the market not in government hands is relatively small.

I don't like referring to student loans as a bubble because it's inaccurate. It's a stealth tax that removes money from the economy and doesn't repurpose it at all. It's the functional equivalent of burning the money. It'd be wiser to declare a jubilee of some sort, even a partial one. Such a move would both go a long way toward fixing the private debt position of Americans generally and would free up a lot of cash flow for economic activity.

it will change until 2024.

It won't change until the mindset that education is an income stream changes. I don't know why 2024 would be the time for that.

pursue collection on defaults up to the point of the borrower's death (and maybe even into probate, although I'm not sure about that). Bankruptcy protections in general do not shield borrowers from their student loan obligations and I have read reports of pensioners' Social Security payments being dunned for student loan payments\satisfaction of defaults.

I call student loan debt the 21st-century version of "indentured servitude." But version 2.0 has an indefinite term, as opposed to its earlier colonial iteration(s).

First, the ivies have hundred million dollar, or billion dollar endowments. In addition, many rich, powerful, and famous people have come from the ivies. If the ivies ever need any money they can just look Hollywood and Wall Street. Some of the highest paid actors either attended or graduated from an Ivy League college. The same can be said for Wall Street. There are also a number of high paid lawyers, doctors, and other professionals who are connected to the ivies.

It seems that Louisiana State University (LSU) has some pretty bad fundraisers. It is a large university with many graduates that are either fairly, or highly successful. The school should be able to get enough money to stay open from its alumni and Louisiana businesses.

Too many new educated and unemployed graduates stirring up trouble as the economy tanks and more become jobless.

The Ivies all sit atop multi-billion dollar endowments that have been built up over 150-200 years. They are as rich as Croesus and the demand to get in is NOT going to be decreasing.

Most of the top 25 Universities in the US (including the Ivies) are private, but are a) research universities that receive large amounts of state, federal, and corporate funds and b) have substantial endowments that are well managed, in terms of risk.

The Diploma Mills, such as Corinthian Colleges, are being targeted because they are exorbitantly expensive and induce would-be students to take out sizable student loans. It may come as a shock to you, but most students of low and moderate income parents pay far less than full ticket at Ivies and similar institutions (Tufts, Emory, Stanford, U Chicago, Northwestern, Vandy, etc.)

LSU is a different issue: Gov. Piyush Jindal has made draconian cuts. I suspect the ultimate aim is to semi-privatize LSU along the same lines as U VA.

until the economy is in complete collapse.

Science, computers, economics -- and they want the fresh young minds these schools supply. Even in a bad economy, people still need stuff.

that request the additional autonomy (what you term semi-privatization), not the states.

And UVA is doing very well under the current system of additional autonomy. I see no problem with it.

20 cash-starved public colleges drafting bankruptcy plans thanks to Bobby Jindal’s budget
http://www.democraticunderground.com/10141074933

n/t

We need a collapse. The modern system where kids come out of school with tens of thousands in interest bearing debt, is nothing more than a modern indentured servitude. A real fix would be to stop the federal guarantees of these loans.

Kids are taking on enormous debt when they are least financially savvy. The loans are a subsidy for overpaid deans, administrators and teachers at colleges a continued wealth transfer to mosty baby boomers.

Corinithian's problem is simple. Their business model only works when it is OK to rip off students and they got cracked down on, and it is well past time. LSU is a different matter. In LSU's case the problem is the state cutting their per student funding to below that which can reasonably be used to educate a college student. A case could be made that state schools might be heading for trouble given the number of states the GOP is in control of, but Corinthian's problems are good news for us all.

and administrators who set up kingdoms with lavish expenditures and pensions.....and makes it impossible to have a reasoned debate because it "attacks" education......

if colleges and universities need to be shutdown whether private or public so be it..........if professors have to take pay cuts and pension reductions, so be it....if benefits gotta be cut like sabbaticals of a paid year off, so be it....

runaway tuition cost, a college loan program filled with fraud and false promises.....requires the system to be changed

for 'educators' by rank and by various types of institutions.

You should read them. I think you'd find that salaries of most faculty and certainly of the 'adjunct staff' are hardly lavish and really don't produce incomes that other occupations with similar front end educational expenses have.

Higher-Ed has typically involved a mobile faculty work-force as people attempt to develop their careers, that's required institutions to fully vest retirement plans...real money goes to fund managers...not promissary notes that have destroyed many union pensions. That's an expense, but typically employer contributions are 5% of salary.

As in most of America, overhead costs associated with lights, heat, IT, medical benefits, liability protection and maintenance have grown significantly since the turn of the century. There was significant bricks and mortar costs and money borrowing in the late 90's as the proportion of high school students going on to attempt higher ed and the proportion of students going on to graduate school grew. To stay in business those loans have to be repaid, sometimes with tuition from enrollments that didn't match projections because of changes like growing reliance of on-line higher ed services

one grad seminar (in 18th-Century British Lit) a year! Now that's living high. Jonathan Swift would not be amused.

Do you know how much a football program costs vs what it takes in?

If you did you would see how your statement is.

LSU football expenses in 2013 were $24MM.
LSU football revenues in 2013 were $68.3MM.

Source

College Football is not the issue, it's just the proverbial nail that sticks up.

The issue is the funding of the overall (public) university system. Colleges and universities all have high costs which are offset, only partially, by tuition. That land, buildings, facilities, equipment, staff and the like are all expensive which is one of the reasons that colleges and universities (to one extent or another) shifting from traditional brick and mortar/physical classroom delivery models to internet based virtual classroom delivery models.

Neither delivery model is perfect (Traditional models: expensive, better interaction between students and in areas like the sciences offer hands on labs. Virtual delivery models: more flexible and can reach out to more students than the traditional model but they limit real time student interactions) and colleges and universities are feeling their way through this paradigm shift and trying to figure all of this out.

that is not going to happen.

Harvard's endowment is $36.4B and Yale's is $23.9B.

Their acceptance rates are around 5%.

They have plenty of money and plenty of demand to study there.

Going away . . . . I hardly think so.

go down if capitalism itself goes down (not entirely out of the question, mind you), since they service the bourgeoisie, the primary beneficiaries of capitalism.

The entire thing is a scam to fleece unsuspecting students. There's no comparison between Corinthian Colleges and any legitimate college or university.

LSU is in trouble because of Jindal and his Republican legislators. They have cut funding dramatically for state-run colleges.

This is really a bogus comparison.