Sunday, April 3, 2016

"Just as Wall Street bankers created a housing bubble using other people’s money, the senior administrators and the older regents at the U have created a higher-education bubble using student loan debt"

From Michael McNabb in the Strib.

In questioning the $7 million buyout provision for the University of Minnesota basketball coach, the two newest regents refer to “a university bubble where logic doesn’t quite look the same as it does for the rest of us.” (“Change is urged on big U coaching deals,” March 31). 

This should be just the beginning of such questions. The 2015 administrative cost report includes some astounding total amounts in several general categories, such as $80.3 million for “leadership,” $77.5 million for consulting and professional services for “mission,” and $66.1 million for consulting and professional services for “mission support.” 

The March 31 issue of the Star Tribune also includes a report on student loan debt (“Tales of student debt aired at Capitol,” March 31). There is a connection here. 

Just as Wall Street bankers created a housing bubble using other people’s money, the senior administrators and the older regents have created a higher-education bubble using student loan debt. 

When this budget balloon bursts, they will walk away unscathed, just as the investment bankers did. The students (and their parents) will suffer harm from the student loan debt that inflated the balloon. They will be shackled with that debt for many years. 

Michael W. McNabb, Lakeville

HT Bill Gleason 

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