America's unsustainable universities

When 15 per cent of graduates default in three years, there's problems with a system.

Harvard University. Photograph: Getty Images
Harvard University. Photograph: Getty Images

One of the oft-repeated claims made in favour of the Government's three-fold increase in the cost of university attendence is the fact that Britain's universities are being out-competed by better-funded American ones.

The broad strokes are true, and hard to argue with. While it remains impressive that Britain has three of the THE's top 10 world universities, and 32 of the world's top 200, the domination of the top-tier by the US is clear. The country produces more Nobel prizewinners, pays its staff more, (even when counting just public universities), and invests more in research and facilities.

But where does all that money come from? Fees from the students. And where do they get the money to pay the fees? Massive student loans. And what happens when costs increase but wages don't? People start to default. A lot.

The Washington Post's Dylan Matthews:

The big takeaways from the Senate HELP committee’s report on the for-profit college sectors were that the institutions (a) are expensive, (b) produce a whole lot of dropouts, and (c) are mostly financed by the federal government. If that weren’t bad enough, they only spend about 17 percent of their funds on actual instruction, and a whole lot more on marketing — including lobbying the feds to pay their bills. A new release (pdf) from Moody’s builds on these findings, and concludes that the situation is not only bad but getting worse. Students at for-profit colleges are defaulting on their loans sooner and sooner after entering:

It may be that Britain still needs to change to compete with the US. But mimicking a system in which 15 per cent of graduates are defaulting on their lowns just three years after entering repayment doesn't seem like the best plan.

13 comments

plain john snith's picture

interesting piece, albeit a few yrs back.....

Working class people have lower IQs than those from wealthy backgrounds and should not expect to win places at top universities, an academic has claimed.

Newcastle University's Bruce Charlton said fewer working class students at elite universities was the "natural outcome" of class IQ differences.

The reader in evolutionary psychiatry questioned drives to get more poorer students into top universities.

The government has criticised Dr Charlton's comments.

These arguments have a definite tone of 'people should know their place'
Higher Education Minister Bill Rammell

Dr Charlton said: "The UK Government has spent a great deal of time and effort in asserting that universities, especially Oxford and Cambridge, are unfairly excluding people from low social-class backgrounds and privileging those from higher social classes.

"Yet in all this debate a simple and vital fact has been missed: higher social classes have a significantly higher average IQ than lower social classes."

The fact that so few students from poor families get into Oxbridge is not down to "prejudice" but "meritocracy", he said.

Higher Education Minister Bill Rammell said: "These arguments have a definite tone of 'people should know their place'.

"There are young people with talent, ability and the potential to benefit from higher education who do not currently do so. That should concern us all."

Sally Hunt, general secretary of the University and College Union, said: "It should come as little surprise that people who enjoy a more privileged upbringing have a better start in life.

"It is up to all of us to ensure that not having access to the social and educational benefits that money provides is not a barrier to achieving one's full potential."

Chris Gilbert's picture

Perhaps university isn't the best place to educate everyone. But lets not be so cynical as to suggest the problem with our universities is that too many people are going to them. That's insulting and degrading to all young people.

Sure, if you give millions of pounds of funding to a class teaching 2 people, it will produce good results.

We are a developed economy, and as such, ought to be continually better educating people. What's wrong with that aspiration? It's certainly much more helpful and useful than John Smith's assertion that large swathes of the younger generation are only fit to be serving him burgers for an American chain outlet.

Of course, if he were better educated he might have a little more respect for the things he doesn't know, and the realisation that actually, that future Burger King employee still knows plenty of things that he doesn't, wherever they were educated.

Indeed, the wisest people know, that there's still plenty for them to learn, whatever age they are.

plain john snith's picture

To Gilbert:
"Perhaps university isn't the best place to educate everyone."
True. Because academics and New Statesman journos and editors are all college grads, they assume everyone ought o go to college, and fail to realise that there are other routes to social mobility and success. Alan Sugar, Bernie Ecclestone, John Major all left school at sixteen or earlier.

"But lets not be so cynical as to suggest the problem with our universities is that too many people are going to them. That's insulting and degrading to all young people."
No it is not. The "Universities" of Luton, Glamorgan, Middlesex, East London etc etc are NOT universities. They are Polys and HE colleges. Calling a Dobermann a Pekinese does not turn a Doberman into a Pekinese. It is not insulting or degrading to point out the obvious fact that young people vary massively in terms of IQ and ability. There are bright kids, average kids and stupid kids. Everyone knows this but educationalists pretend they do not. Not everyone is suited to higher ed. Everyone knows this, but again, some people pretend they do not. Obviously, being unacademic is not the same as being unintelligent, but there are many unintelligent people. They have to have jobs same as high IQ people.

"Sure, if you give millions of pounds of funding to a class teaching 2 people, it will produce good results."

Yes, but again, only if the 2 people are clever enough to benefit from this high spending. Even unlimited spending will not turn low IQ kids into high IQ kids.

"We are a developed economy, and as such, ought to be continually better educating people. "

Er, why? What has the state of the economy, developed or otherwise have any bearing on the % of people in higher ed? This is what us philosophical types call a non sequitur.

"What's wrong with that aspiration? It's certainly much more helpful and useful than John Smith's assertion that large swathes of the younger generation are only fit to be serving him burgers for an American chain outlet."

I didnt say this. I would be just as happy if they were serving me on behalf of a UK owned company.

"Of course, if he were better educated he might have a little more respect for the things he doesn't know, and the realisation that actually, that future Burger King employee still knows plenty of things that he doesn't, wherever they were educated."

Actually, I attended a Russell Group Uni and got an MA, make lots of money and am a member of Mensa. But you don't need that high an IQ do spot that, as I previously stated, the recent massive expansion of higher ed is basically a con job.

Rick Mc Callister's picture

You obviously did not do your homework. The major problem lies with defaults lies with private for profit "universities." The problem behind the problem is that too many professions that used to require a 6th-grade education 100 years ago, now require a university degree. Why do you need a degree to sell life insurance, to work in a bank, to manage a restaurant or a store, etc. Most business pursuits only require remedial 6th grade arithmetic plus the knowledge of PRT. And now, computers already do the math for the employees. About 90% of US universities could be shut down and never be missed. But students do learn critical thinking, something which lowers the Republican (or Re-Pukes, as we call them) vote count

Steve AM's picture

The problem is when people leave University. The skilled jobs to match their knowledge are not there, that is why many have to do jobs that do not need a university education.

Herbert's picture

Most people have never gone into jobs that 'march their knowledge' when they leave university. You know, don't you, that most people who do, for example, history or philosophy, don't become historians or philosophers?

hugh markey's picture

Jeeze, it's simply ages since we've come across the IQ word in the NS. IQ = Idiot Quotient. OK, by implication and we cotton on - it's the economy, stoopid.
However, can you blame the youngsters? Since the early part of the 20th century the entire US populace has been the dupe of the graphic artist and bubble dialogue.
In the austere forties and early fifties, the Labour government had the insight to ban these fairy tales about Super Heros. No dames? Suspicious! But, no sooner had that great wordsmith and phrase-maker, Winnie been elected, than the Tories rescinded the ban and we were deluged with pulp fiction. Wait - this was before commercial television.
Movies, television, cable and the internet have merely augmented this visual recreation.
Most films now have their origins in the world of puerile pulp.
And as for electronic games.
Just look at NASA. Intellectual property imported from abroad at an increasing rate since the Space Race was up and running. ' You haf relatives living in Ghermany?' And Silicon Valley - electronic coolies in abundance. Asia comatose!
Look, Homer Simpson once said ' DOH' And what was it that straight-arrow Mitt misspoke. "S****'.

OLYMPIC MAN

hugh markey's picture

Jeeze, it's simply ages since we've come across the IQ word in the NS. IQ = Idiot Quotient. OK, by implication and we cotton on - it's the economy, stoopid.
However, can you blame the youngsters? Since the early part of the 20th century the entire US populace has been the dupe of the graphic artist and bubble dialogue.
In the austere forties and early fifties, the Labour government had the insight to ban these fairy tales about Super Heros. No dames? Suspicious! But, no sooner had that great wordsmith and phrase-maker, Winnie been elected, than the Tories rescinded the ban and we were deluged with pulp fiction. Wait - this was before commercial television.
Movies, television, cable and the internet have merely augmented this visual recreation.
Most films now have their origins in the world of puerile pulp.
And as for electronic games.
Just look at NASA. Intellectual property imported from abroad at an increasing rate since the Space Race was up and running. ' You haf relatives living in Ghermany?' And Silicon Valley - electronic coolies in abundance. Asia comatose!
Look, Homer Simpson once said ' DOH' And what was it that straight-arrow Mitt misspoke. "S****'.

OLYMPIC MAN

IN REALITY's picture

Compared with international competitors the UK has been slipping back in the numbers of people going to university. The UK has fallen from third to fifteenth in the international league of graduate numbers between 2000 and 2008, according to OECD figures.
The UK spends 1.3% of GDP on higher education - lagging behind 3.1% in the US, 2.4% in South Korea and 2.6% in Canada. Within Europe, the UK is behind countries including France, Denmark, Finland, Sweden, Portugal and the Netherlands.

plain john snith's picture

Repeat after me until you have grasped it: the reason for the financial crisis in the UK tertiary ed system IS THAT THERE ARE FAR TOO MANY PEOPLE GOING INTO TERTIARY EDUCATION. The idea that 40-50% of 18 yr olds are capable of beneffitting from a college education is simply risible: it is not just a massive scandalous waste of resources and a ludicrous piece of utopianism: it is also a piece of downright cruelty to all these kids who are being conned by their lecturers into believing that they are uni material when they aint. There simply are not that many clever people in the world. 15% is probably the max who ought to be in 3rd level ed. The massive expansion over the last 20 yrs has largely been a YTS scheme designed to disguise the true rate of yoof unemployment and unemployability

Dark Heart of Toryland's picture

'Repeat after me until you have grasped it' - obviously, you haven't had the benefit of a university education if you consider that to be a reasonable way to present an argument.

Herbert's picture

People like you were saying exactly the same thing when universities expanded in the 1960s, when participation went from 5% to 15%. 'There simply are not that many clever people in the world.'

plain john snith's picture

Yes, but there is a rather large difference between expanding from 5% to 15% and going from 15% to 40 plus. In this case, it happens to be true. If a cv of a graduate in Wimmin's Studies from the "University" of Luton came accross my desk, I can assure you it would be swiftly dispatched (despatched?) to the big round file on the floor. Everyone working at such establishments know perfectly well their alumni will end upworking at Burger King.

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