These stories are popping up so often its probably best to have one thread for them. And here we meet some 49 year old lady who spent close to 100K to go to school and cannot even get a job flipping burgers so she lives in a hotel and probably soon in her car. It is a sickening plummet, considering that she was earning $56,000 a year in her old job, enjoyed vacationing in places like Mexico and the Caribbean, and had started business school in 2008 at Iona College. Ms. Jarrin had scrabbled for her foothold in the middle class. She graduated from college late in life, in 2003, attending classes while working full time. She used to believe that education would be her ticket to prosperity, but is now bitter about what it has gotten her. âI owe $92,000 for an education which is basically worthless,â she said. Last year she moved to Brentwood, Tenn., south of Nashville, in search of work. After initially trying to finish her M.B.A. program remotely, she dropped out because of the stress from her sinking finances. She has applied for everything from minimum-wage jobs to director positions. http://www.cnbc.com/id/38537255
American college education industry is exactly like the housing industry. They both were pumped up by easy access of bank loans, therefore overpriced and a big bubble. Borrowers are unable to payback the loans.
And it is non dischargeable as well. So with unemployment or underemployment that 100K will become 800K through compounding and penalties. At that point you are better off leaving the United States and working overseas illegally. Bubble signs. Tuition is, and has been, increasing at double triple the rate of inflation Students are borrowing more than ever to pay for college For profit colleges are paying homeless people to take out federal loans to enroll Colleges are on a non-teaching staff hiring spree that far outpaces enrollment For profit reliance on federal loans has reached an all time high Schools are spending on luxurious amenities to lure in more students College president salaries are sky high, even in a historical economic downturn The student loan problem cuts across all schools, for profit and nonprofit
Selection bias. The problem is that she has average abilities and in that case companies prefer younger, out_of_college candidates. In USA a 49 year-old is considered a burnout. Let us be honest about it, this is the culture. Most employers believe it is more likely to have problems from people in that age rather than benefits. The same more or less holds in Europe. I do not know what the case is in Asia and I would be interested to know. The fact is there is a certain degree of age racism in Western countries, often justifiable on the grounds I mentioned above. It is a problem though.
I saw nothing in the article to elicit pity. She is bitter. She dropped out because of stress. If the 99ers had an extension, they would just become the 151ers or the 203ers. Sorry you might have to sell the SUV or stop the vacationing in the Caribbean. Sorry that MBA did not work out...
Have been short APOL & DV for a while now but looks like after recent Department of Education watered down proposals these guys might actually get away with it. You need to see Kathleen Tighe's statement for a Senate Committee in last week of June this year. Real eye opener, more than what my research had dug up. Maybe watchout for GAO report on for profit education sector thats coming out tomorrow 1400hrs EST ? But this trade kind reminds me of my NYSE:GES (GUESS ?) short some time back. They used to copy Gucci designs kinda 6-9 months down the line, anyway just when l was about to double my shorts they settled out of court Sometimes when you are too confident on a trade, something silly happens..... Cygnus Atratus P.S. I am not an American taxpayer so quite frankly if your Govt wants to bleed money on institutions giving Mickey Mouse degrees thats McEducation for you. Am a proud Briton. GOD SAVE THE QUEEN
We should do something such as Carousel. I bet the economy would improve if such a system existed. <object width="480" height="385"><param name="movie" value="http://www.youtube.com/v/xSnLU9nyFSA&hl=en_US&fs=1"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/xSnLU9nyFSA&hl=en_US&fs=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="385"></embed></object>
Exactly however no one believes that side of the story, everyone is pushed to go to college, and that if you don't go to college you wont get that great paying job with that huge house with $100k car and all the other great perks that come with it. College is a business. Anyone thinking the more they pay for an education that the better they will be within the career path they take will be proven wrong in today's economy.
Sorry, the lady is a loser who got sold a bill of goods. I wouldn't employ her... if she's 49, with 3 adult sons, and she still can't get her sh*t together, how can I even have her making routine, mundane decisions for my business? She's only qualified for non-thinker jobs, and as such, she should be applying to be a coffee-jerk at Starbucks. What the hell is an unemployed woman, aged 49, doing driving around up and down the Eastern US looking for a job? She was "studying" for her MBA in New Rochelle, New York... why the hell didn't she take one or two minimum wage jobs there? The Taco Bell on Boston Post Road is hiring, as is the U-Haul facility. Heck, if I was her, I would take one minimum wage job, and one off-the-books job like doing housekeeping for cash for wealthy people one town over in Larchmont or Rye. And yeah, being a recent grad at 49 puts you at a serious disadvantage. Old people get sick more, they use the health insurance more which raises premiums for the whole company, and they tend to be more demanding and less likely to roll-up-the-shirt-sleeves-and-get-the-job-done. Employers want to hire the kind of people who will crawl under the desk and check connections if your mouse stops responding... they don't want the old lady who needs IT to show her how to click on a link. She sucks, and she really needs to go get a friggin minimum wage job already. An MBA isn't going to fix stupid.