Khan Academy

The Tech-Driven Teacher - Slate

When you hear Salman Khan’s story, it sounds like an Internet-age fairy tale, one that goes something like this. Once upon a time, a brainy MIT graduate working as a hedge-fund analyst started tutoring his cousin in math and science online. He decided to make YouTube videos of his tutorials. The videos racked up millions of views and reached audiences around the world, and appreciative students offered stirring testimonials. After three years, the hedge-fund analyst quit his day job to set up an educational nonprofit called The Khan Academy. The mission: provide a world-class education to anyone, anywhere for free.

College and Debt

Higher Education Bubble Update - Glenn Reynolds

Here’s what [Florida Gov. Rick] Scott said:

You know, we don’t need a lot more anthropologists in the state. It’s a great degree if people want to get it, but we don’t need them here. I want to spend our dollars giving people science, technology, engineering, math degrees. That’s what our kids need to focus all their time and attention on. Those type of degrees. So when they get out of school, they can get a job.

Even at Mother Jones we hear: “Scott’s reasoning could attract a lot of Floridians.” Ya think? But there’s this, too: “Is a degree’s intrinsic value really reducible to its marketability?”

After decades of selling college as an “investment” — and pricing it accordingly — it’s going to be hard for the higher education establishment to pivot to a college-as-personal-fulfillment argument. If it’s the latter, it’s a consumption good, priced on a par with a Porsche or Ferrari. Those shouldn’t be financed by debt, or bought by 18-year-olds. If college liberal-arts degrees, on the other hand, are to be sold as a public good, benefiting society so much that society should pay the freight, then (1) Society should have a much bigger say in what’s being taught; and (2) It might be nice to see some actual, you know, evidence of that. Also, students should be warned up front that they’ll be spending 4 years (or 5, or 6) of their lifespan doing something that’s good for society. The trust-funders may be okay with that, but that’s not a lot.

More Trouble in Paradise

SCOTUS Makes It Official: California A Failed State - Walter Russell Mead

Let there be no mistake: when you produce so many criminals that you can’t afford to lock them up, you are a failed state. Virtually every important civil institution in society has to fail to get you to this point. Your homes and houses of worship are failing to build law abiding citizens, much less responsible and informed voters. Your schools aren’t educating enough of your kids to make an honest living. Your taxes and policies are so bad that you are driving thousands of businesses away. Your management systems must be fouled and confused to the max for you to create something so dysfunctional, so wildly beyond your means, that the Supreme Court of the United States (wisely or foolishly is another question) starts to micromanage your jails.

California used to be the glory of this country, the dream by the sea, the magic state. Now it produces so many criminals it can’t pay to keep them locked up.

College Costs

Raymund Paredes: $10,000 Degrees "Entirely Feasible" - Reeve Hamilton

At a board meeting of the Texas Higher Education Coordinating Board on Wednesday, Higher Education Commissioner Raymund Paredes said that $10,000 bachelor's degrees — books included — as proposed by Gov. Rick Perry are "entirely feasible."

He hopes to have concrete proposals and coursework in place to meet the challenge before the start of the next legislative session in 2013.

A repeated theme in the board's discussion about the governor's cost-cutting proposal was that they were not seeking to replace existing degrees or artificially push the costs of those down, but were rather seeking to provide alternative options for low-income students. "We're not talking about every field," Paredes said. "We're not talking about every baccalaureate degree. We're not talking about every student."

Van Davis, special projects director for the coordinating board said that all low-cost degree programs would have to share certain characteristics. They would have to be rigorous, highly structured, allow for advancement based on proven competency levels, leverage technology, and have buy-in from faculty members. "Low cost does not equate to low rigor or even low value," Davis said.

A key to reaching the goal will be leveraging existing resources, such as online degree programs and open source textbooks. "Our institutions are already doing so many pieces of this," Davis said, noting that it was largely a matter of putting those pieces together in the right way.

College Education Trends

A Perfect Storm in Undergraduate Education, Part I - Thomas H. Benton

Unsurprisingly, Academically Adrift: Limited Learning on College Campuses (University of Chicago Press, 2011), by Richard Arum and Josipa Roksa, reveals that at least 45 percent of undergraduates demonstrated "no improvement in critical thinking, complex reasoning, and writing skills in the first two years of college, and 36 percent showed no progress in four years." And that's just the beginning of the bad news.

Spiraling College Costs

Universities On The Brink - Louis E. Lataif

Higher education in America, historically the envy of the world, is rapidly growing out of reach. For the past quarter-century, the cost of higher education has grown 440%, according to the National Center for Public Policy and Education, nearly four times the rate of inflation and double the rate of health care cost increases. The cost increases have occurred at both public and private colleges.

Like many situations too good to be true--like the dot-com boom, the Enron bubble, the housing boom or the health care cost explosion--the ever-increasing cost of university education is not sustainable.

Just 10 years ago the cost of a four-year public college education amounted to 18% of the annual income of middle-income families. Ten years later, it amounted to 25% of that family's average annual income.

...

We're seeing articles with headlines like: "The End of Higher Education Enrollment as we Know It"; "Is College Worth the Investment?"; "Will Higher Education be the Next Bubble to Burst?"; and "Drowning in Debt: The Emerging Student Loan Crisis."

...

All this happened while total federal student aid more than doubled, in constant dollars, from $60 billion ten years ago to $120 billion today. Sadly, more federal student aid simply fuels the rising costs. The cost of education tracks with the growth in federal aid; the transaction cost for students is not lowered. The federal money effectively flows directly to the operating expenses of the Universities-which seem to rise in direct proportion to the flow of federal funds.

Because all universities offer some kind of financial assistance, the nominal tuitions are not the amounts universities actually take in. Discounting, often in the range of 25% to 35% of tuition, is offered as financial aid. But even after the discounting the average realized tuition revenue at universities continues to grow.

Perry proposes $10,000 bachelor degrees - Erin Cargile

During his state of the state address Tuesday, Gov. Rick Perry said it is time for colleges and universities to lay out a low-cost path to a degree.

"It's time for a bold, Texas-style solution to their challenge that I'm sure the brightest minds in their universities can devise," said Perry. "Today I'm challenging our institutions of higher education to develop bachelors degrees that cost not more than $10,000 including textbooks."

It is a goal Perry said could be reached with online courses and "innovative teaching techniques." Patrick said offering a packaged price for what a college education will cost is a good idea. Democrats blasted the governor said it would dumb down Texans.

HIGHER EDUCATION BUBBLE - Steve Schroeder via instapundit.com

While visiting with old college friends on New Years’ Eve we did a back of the envelope calculation on the cost and value of our BA degrees in Accounting from 1981. We attended a small well regarded Midwestern liberal arts college from 1977 to 1981. Tuition, room and board was between $3,000 and $4000 per year so around $16000 for our BA. As entry level accountants in public CPA firms we earned a salary of around $17,000 per year. So we earned in salary an amount equal to the cost of a BA degree in our first year of employment. Now that same college, which my youngest daughter is looking at attending costs $42,000 per year. If she earned her BA in Accounting it would cost her $168,000. Her possible first year salary as a CPA? Not even close to $168,000. Maybe around $45,000. What a change in 30 years in the value of that BA in Accounting.

HIGHER ED BUBBLE UPDATE - Glenn Reynolds

Administrative Bloat at American Universities: The Real Reason for High Costs in Higher Education. “Between 1993 and 2007, the number of full-time administrators per 100 students at America’s leading universities grew by 39 percent, while the number of employees engaged in teaching, research or service only grew by 18 percent. Inflation-adjusted spending on administration per student increased by 61 percent during the same period, while instructional spending per student rose 39 percent. Arizona State University, for example, increased the number of administrators per 100 students by 94 percent during this period while actually reducing the number of employees engaged in instruction, research and service by 2 percent. Nearly half of all full-time employees at Arizona State University are administrators.”

UPDATE: Related: Is The College Business Model Broken?

Public Education Costs

Futility - John Hinderaker

It is no secret that education in America has lagged, by international standards, for quite a few years. The liberals' answer is always the same: spend more money. I would argue that we have carried out a laboratory experiment, and have conclusively proved that more money is not the cure for whatever ails the education system. This chart, just produced by the Cato Institute, makes the point with beautiful simplicity.

Follow links to see charts.

Runaway College Costs

Administrative Bloat at American Universities: The Real Reason for High Costs in Higher Education - Jay P. Greene

Between 1993 and 2007, the number of full-time administrators per 100 students at America’s leading universities grew by 39 percent, while the number of employees engaged in teaching, research or service only grew by 18 percent. Inflation-adjusted spending on administration per student increased by 61 percent during the same period, while instructional spending per student rose 39 percent.

Why Does College Cost So Much? - Stephen Spruiell

The authors don’t bother to mention the argument, even for the purpose of dismissing it, that the primary factor driving college-tuition inflation is actually ballooning federal tuition support: Tuition keeps going up because the federal government ensures that students can afford to pay it.