From Bloomberg Business Week.
I have been wondering about this, in light of Occupy. (Occupy Wall Street is essentially now a group advocating for debtor’s rights and fundamental fairness.)
American students are being asked to take on extreme amounts of debt for an “education” that really is a financing scheme for an excessive amount of administrator paychecks. It’s like a surtax on young people, to support an education class that isn’t exactly in front of the students, teaching.
The extent of this varies by the campus, of course. As regular readers know, I have featured Pennsylvania’s Temple University’s “Friends and Family” hiring policies, and the money being diverted to pay real estate landlords in Tokyo, Japan. But I’m sure this sort of thing goes everywhere: Penn, etc.
It’s unfortunate that the taxpayer also loses, because many of these schools have huge endowments, that will never be fully spent, and with income being generated that is never taxed.
There should be a surtax on schools that hire too many administrators. Use that money to reduce tuition. Let the government directly pay the excess administrators, rather than suck it out of the kid studying.