Colleges, Universities Hit by Credit Crisis

Marc and Beverly Ostrofsky have five daughters

(NEWSER) - Good thing he wrote a bestseller. Houston dad Marc Ostrofsky has tallied up his family's college costs, and "we’re looking at roughly $60,000 to $70,000 per child per year," he tells KHOU . "A total of about $1.5 million after tax dollars." Ostrofsky has five daughters and stepdaughters; the oldest just graduated Berklee School of Music, while the youngest is about to start at Boston University. More»

Congress is screwing college students in much bigger ways

(NEWSER) - Congress is up in arms over how to keep rates on Stafford student loans from doubling in July, but Mark Kantrowitz and Lynn Shaughgnessy have a question: Who cares? "The partisan posturing is a distraction from far more pressing issues that face students," the college experts write in the New York Times . Stafford rates have only been at their current low rate for about a year, and even if they jumped back up, it would only costs students about $6 extra a month. 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.

Officials walk line between shoring up budgets, maintaining reputations

(NEWSER) - The unraveling economy is spurring a boom in applications to public universities as students pursue higher education at lower prices, the New York Times reports. But while increased enrollment may help offset the budget cuts that many public institutions expect as states trim budgets, it can also diminish the student experience—and ultimately a school's reputation, leaving officials to walk a tightrope between cash flow and prestige. More»

Students log just 27 hours of class, study time a week

(NEWSER) - In 1961, college students spent 16 hours in class each week and another 24 hours studying, making college the equivalent of a full-time job. Today, just 27 hours are spent in class and studying—or the same amount of time, the Washington Post points out, as the typical five-year-old spends in all-day kindergarten. The average amount of weekly study time has dwindled to about 15 hours, according to a new survey, but students are still skating by. "I do get good grades, and I’m not working very hard," says one sophomore. That type of statement is leading many to wonder if college students are actually learning anything for their increasingly costly tuition, or if they are simply getting, as one researcher puts it, "four or five years of country club living." More»