Is a coming student loan crisis the next to burst?

From the Blaze:

First the dot.coms popped, then mortgages. Are student loans and higher education the next bubble, the latest investment craze inflating on borrowed money and misplaced faith it can never go bad?

Some experts have raised the possibility. Last summer, Moody’s Analytics pronounced fears of an education spending bubble “not without merit.” Last spring, investor and PayPal founder Peter Thiel called attention to his claims of an education bubble by awarding two dozen young entrepreneurs $100,000 each NOT to attend college.

Recent weeks have seen another spate of “bubble” headlines — student loan defaults up, tuition rising another 8.3 percent this year and finally, out Thursday, a new report estimating that average student debt for borrowers from the college class of 2010 has passed $25,000. And all that on top of a multi-year slump in the job-market for new college graduates.

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No Education without Representation: how special interests are robbing our students’ futures

The U.S. Education Department’s National Center for Educational Statistics on Tuesday released what it calls the Nation’s Report Card. The compilation of student test scores nationwide reflected a 1 percent improvement by fourth- and eighth-graders in mathematics but essentially no improvement in reading proficiency.

While the tiny improvement in math marks the highest scores in the history of the test, what makes the results troubling is that only 40 percent of fourth-graders and barely 35 percent of eighth-graders tested proficient in math and roughly one-third proficient in reading.

Shortly after the release of the Nation’s Report Card, Michelle Rhee, an education reformer and former head of the public schools in the District of Columbia, called me to discuss the state of education in the United States and what ought to be done to improve public schools. Rhee made headlines for her tough, data-driven approaches to education reform and battles against teachers unions in D.C. which eventually led to her resignation after unions spent significant resources to unseat Mayor Adrian Fenty, who hired Rhee. Rhee also was featured in the acclaimed education reform documentary “Waiting for ‘Superman.'”

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(Brian Calle is an Opinion Columnist and Blogger for the Orange County Register. His blog is called Uncommon Ground.)

Liberal Oakland outfit wants more taxes; “Do it for the Kids” angle, yet again


From the Silicon Valley Education Foundation:

A partnership of education, parent, and business groups is aiming to put on the November 2012 ballot an initiative combining sweeping education reforms with a tax increase dedicated to preschool to twelfth grade, called The 2012 Kids Education Plan.

In a short statement (see below), the dozen groups used the code words for fundamental changes in school funding and personnel laws like teacher tenure without yet citing specifics: “a student centered finance system, true transparency, significant workforce reforms, and new investments in education through a statewide broad based revenue source and lowering the voter threshold on local revenue” (a reference to the current two-thirds majority needed to pass a parcel tax).

Ted Lempert, president of Oakland-based Children Now, said the groups were considering a tax that would raise $6 billion to $8 billion annually for education – the equivalent of roughly an additional $1,000 to $1,330 per student – an amount that would recover much of the state funding that has been cut over the past three years. While a big ask in a recession, it would still fall shy of raising California’s per-student funding to the national average.

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