Monday, October 20, 2008

Penny to the Wise



My roommate can't afford to attend the University of Wyoming, but she's here. The last deadline for payment for this semester was last Friday, October 17th. And she hasn't paid the full bill.

Because she can't afford it, does that mean she doesn't deserve to be here? She has merit enough to be accepted by enrollment and get a music scholarship, but don't buy what you can't afford?

It makes sense in the domestic world when one is exchange money for goods and then immediately using those goods. But when we talk about education, we're talking about investing. We are getting our degrees not necessarily for the fun and prestige of it, but we know down the the road it will help us get a better job and live comfortably. That's why those that can't afford it are more willing to take out loans---the likelihood of them obtaining a better job with a college degree increases dramatically, just as finishing high school makes a difference. NPR's personal finance expert, Chris Ferrell, considers student loans "good loans," loans you want. Not only that, but a nation wants educated people (what economists term "human capital) because they will be the ones who pioneer new technology, or will be able to lead, or teach next generations, etc.

The value of education is priceless...but also very expensive. This goes beyond attending the luxury private school, but even more reasonably priced public universities. I claimed earlier that race is a poor reason for someone to be given help in the admissions process, so why should income be treated any differently and be given concessions?

1. Economists David Ellwood and Thomas Kane discovered that the role of family background in influencing post-secondary “training choices” has been increasing overtime. Meaning, it may be harder for those in "bad neighborhoods" to get the proper encouragement and guidance they need in planning their future. A college education can make a unparalleled difference in the outcome of someone's life. A study by the College Board backed this up when they found that only 54% of those from families in the bottom quartile enrolled in college, compared to the 82% from those in the top quartile. If they can't afford it, why should they even bother?

2. The child’s expectations are shaped by their environment, and Michael McPherson and Morton Schapiro, co-authors on a book about financing college, concluded that the lower the income, the less likely a student was to apply to a prestigious college, the less likely that they would be admitted, and the less likely they would enroll if accepted; despite their qualifications.

3. And unlike minorities, and in some cases athletes who are admitted more carelessly, low income students who are admitted are more likely to succeed.


Having a low income is more disadvantageous that being a minority. There are some districts where over 75% of the students have free or reduced lunch. Schools like this are simply unable to afford the same services that other schools can offer. The book Equity and Excellence described situations in low-income neighborhoods where 36% of the teachers left midyear. These students are struggling with an incomplete education, no matter how much they work and they shouldn't suffer for it. A study compared the average cost of of money spend on students, about $7000 being the average, found that in low-income neighborhoods (the study used Detroit) only about $4000 was spent per child, and in high-income neighborhoods about $11000-12000 dollars were spent.

These are circumstances that are brought upon students but which can be improved Unlike race, income hampers the quality of education a child receives and therefore the ability of them to properly demonstrate their abilities. And coming from a poor environment may hamper their success as well. I believe there is a false assumption that minorities need more help because minorities are 10 times more likely to attend a poorly funded school. But a minority shouldn't be favored over a white child who attend lived through the same situation as they had.


Sure, it would be great if we could have an admissions process based solely on merit and talent. And the solution could be leveling the school systems (NOT by No Child Left Behind) and putting more funding into struggling schools, etc. But we don't live in a fantasy world where solutions can be quickly solved by doling out money we really don't have.

Give a penny to the wise, and the penniless.

4 comments:

Corey said...

Yay, you addressed my contentions. And very well, I might add. It's just so upsetting to think that institutions are telling students (through their actions), sure you've got the credentials, but where's the money? It's always about the money. Yes, they need money to operate just like any other organization in the world. However, you can't tell me that Harvard, which boasts the largest financial endowment in the world (the WORLD) still has to charge above $40,000 a year for tuition. And if you're at Harvard, you're qualified.

What about the government? Oh, no, that would be too extreme. What with spending $700 billion to bail out lenders who made poor business choices, and the $400 billion we've spent in Iraq (note that this is only for traceable, direct costs), I just suppose we can't afford it.

What does this tell you? I suppose if you want money from the government, you have to either be a country in need of democracy or a really bad businessperson. Well guess what, if we limit our, say business institutions to only the financially-blessed, the poor businesspersons will keep being cranked out.

J Ham said...

I'm glad I could make a difference in a young man's life...
I know what you mean, but there are people who can afford the $40k a year though. And I think they help those who can't afford it..but maybe harvard's not the best example of that.

I think UW does a good job helping people especially if they are instate though. Out of state though, kind of lame.

I would hate to think that the only solution is to have the government pay for us. I think the solutions would be either raising the tuition for those that can pay, which almost seems unfair, or a radical change like Standford's system, or something I can't think of.

Corey said...

Obviously if this issue were one with an easy solution, we would already have it.

J Ham said...

Exactly.