Credit Card Debt Spikes on Campus

Introduces plan to control tuition costs

(AP) - President Barack Obama today called for an overhaul of the higher education financial aid system, warning that colleges and universities that fail to control spiraling tuition costs could lose federal funds. Speaking to students at the University of Michigan, Obama said he was "putting colleges on notice" that the era of unabated tuition hikes is over. "You can't assume that you'll just jack up tuition every single year. If you can't stop tuition from going up, then the funding you get from taxpayers each year will go down," Obama said on the final stop of a three-day post-State of the Union trip to promote components of his economic agenda. More»

Not the national kind, the personal kind

(NEWSER) - Republican freshmen in Congress say they're serious about tackling the US debt—but when it comes to their own personal debt, many have what the Washington Post amusingly calls “a more nuanced view.” At least 30 out of 87 had debts of $50,000 or more last year, according to financial documents released yesterday. Some of that included mortgages on investment properties (mortgages on non-rental properties weren't included) and student loans, but at least seven had credit card debt of more than $15,000. More»

First-year college students report low emotional health

(NEWSER) - College freshmen might not be learning much —but that doesn’t mean they’re not stressed. The levels of emotional health in incoming freshmen hit a record low last year, probably thanks in part to the recession. According to an annual survey, students who rated themselves as having “below average” emotional health rose, while those who said they had “above average” emotional health fell to 52%. In 1985, 64% of students claimed “above average” emotional health, the New York Times reports. Parental unemployment was also at a record high. More»

52K take to streets to protest university fees

(NEWSER) - Chaos erupted in London today during a student demonstration over an increase in university tuition fees, the Guardian reports. Though most of the 52,000 protesters conducted themselves peacefully, a small group threw rocks at police and forcibly entered the headquarters of the Tory Party. Once inside, they made their way to the roof and threw fire extinguishers and other objects from the roof. Fourteen people—some police, some protesters—were hospitalized, and 35 protesters arrested. More»

It's a four year—or more—waste of time, author says

(NEWSER) - College is a must if you want to have a real career, right? Nope, it’s “a scam, a self-perpetuating Ponzi scheme that needs to stop right now,” writes James Altucher for DailyFinance.com . Here are his seven reasons you shouldn’t send your kids:

• It’ll cost more than you think: Thanks to the fact that more than 60% of college students will take more than 4 years to wear that cap and gown.
• It doesn’t matter, money-wise: Yes, the difference in income between a college grad and a non-grad is approximately $800,000 over a 45-year career. But if you invest the $200,000 likely college cost in bonds yielding 3%, over those 45 years plus the 4 spent in college, you’ll end up with $851,000.