College Grads Often Jobless

Nothing new- just that the mainstream press is beginning to write on this. From author Barbara Ehrenreich's Blog: "[Jared] Bernstein [Economic Policy Institute] says, the wage gap between the college-educated and non-college-educated is beginning to narrow, and this not because the wages of the latter are rising." How many do you know who are under-employed or working at jobs that just pay crap? Not to mention being in the hole from college debt. Uh-oh, guess you're not related to anyone who counts. And this from an article in May of 06!


I'm not spreading this good news to my URI soph son. My mother didn't raise any fools. And him studying business to boot. Oh, well. No good trying to enter the job market now anyway.

Screwing URI

Projo has an article regarding an upcoming report by the Commission for Innovation and Research.


"Arguing the state university lags so far behind in its research capacity that drastic action must be taken, a commission today will recommend several steps to bolster research at the University of Rhode Island designed to make the university more competitive and the state’s economy more vibrant."


One of the three major recommendations is a $100-million bond referendum in 2010 to attract 20 to 30 top researchers to URI and upgrade research infrastructure. The other two concern the hiring of a new Pres. & "Create a sustainable financial model for URI that provides university leadership and the Board of Governors with the flexibility to make necessary investments in building research capacity." Whatever that means. I think it translates to not having to answer to the state at all.


"'For the past 10 years or so, URI has not done well, and in fact has missed a real wave of research effort nationally,” said Flanders, who also chairs the state Board of Regents for Elementary and Secondary Education. “We feel we must take bold steps at this point. Studies show that for every $1 million invested in research, 36 jobs are created, and these are good jobs, high-paying, cutting-edge, technology jobs — the kind of jobs we want to grow in Rhode Island.'”


URI, says Kaplan, needs to run “less like a government agency and more like a business.”

Ah, there's a chilling statement. We're reaping the rewards of all this bunk that gov't is your enemy now, aren't we? URI needs to operate as a public university which is what it's supposed to be.

"The report stops short of calling for the privatization of URI, but President Carothers has said publicly that if the trend of diminishing state support continues at its current pace, URI will receive no state money by 2013, and will be, in effect, an institution entirely funded by tuition, fees and grants.

This year, the state is contributing just 11 percent of URI’s operating budget. A decade ago, the state contributed 26 percent."

But, but, we gave all those rich residents tax breaks? Didn't that help URI? What are they talking about?

Let's see: parking fees for URI- $260. Books- $700. Fees, fees, fees. No room at the gym to actually work out. Long lines at the cafe. Soaring tuitions. Tax breaks for the wealthiest. Give them tax breaks & they will come. Doesn't mean they'll spend anything, but they'll come. And we're a Democratic state? Good thing that they post parties on the voting ballots; otherwise, you'd never know.

Yeah, URI a private university. Thanks for nothing.

To see a copy of the report, visit: http://stac.ri.gov/news/2008/10/07/uri-commission-report/
Thanks to Projo's jjordan

URI's Dirty Little Secret

Generally I only have good things to say about URI, home base to my youngest son who loves it there.

However, I do have one major complaint echoed by others- the % of out-of-state admissions. Currently, most of the students are NOT Rhode Island residents. Some programs are worse than others- notably the Pharmacy School. I was unable to find stats for the various university programs giving the % of residents versus non-residents. And I'm good at find out info (former librarian).

Why is this? Well, duh, it's money. Out-of-staters pay substantially more in tuition. URI is #6 in state-supported schools with the highest number of out-of-state students. Out-of-staters pay 3x more! Understand now?

The pharmacy program is one of the most competitive programs at URI. Each year, more than 1,000 applicants pursue 90 available spots in the six-year Pharm.D. program. Construction of a new building for this prestigious program has begun. And who is paying for this building- WE ARE through a state bond! And who will be using it? Not many of us, to be sure.

Here is the 2007 pharmacy tuition for a state resident: $6,376. For a non-resident: $21,230. And let's not forget substantial fees.

Anyone know the % of in-state students in this program or any others? Most state schools offers preference admission to residents, but not all. We should be ashamed not only for the rising costs here, but the lack of residents. They are often just as well qualified, but not offering more tuition monies. Sad, especially considering that some of our industries are suffering from lack of qualified college grads. There seems to be a quota here of in-state admissions versus out-of-state admissions which we are not aware of and should be. Hello, Projo. You can look into this far better than I. Although, maybe not...

CCRI, RIC, & URI Hike Tuitions

When our State NEEDS more college grads, we raise tuitions. Around here, engineers of all sorts are hard-to-find. But tuitions are raised. Don't forget fees also. These can be surprisingly high & mount up fast when paying college costs. And then there is transportation...

RIC is up 10% & CCRI 8.6%. URI is up 6% for tuition AND fees. Pharmacy students (mostly out-of-state) will pay $500 more. RIC is %5,771 in tuition & fees with room & board appx. $8,000. CCRI is slight over $3,000. URI is $8,678 in tuition & fees with room & board at $10,000. These are all in-state costs. And the final kicker- "...the state scholarship program was cut by $2.6 million for the coming academic year."

Now let me delve into my memory banks- $2000 tuition, room & board at a private college for 3 yrs. One yr. at a state college with the $200 tuition waved for a state teachers' scholarship given to anyone who agree to teach in a public school for 2 yrs. 3.5% federally guaranteed loans, $500 in state scholarships, & a federal program to negate loans if you taught in a federally impacted area (like HERE). Jobs in the college, federal summer jobs for students, blah, blah. This was when I lived in Maryland. Yup, a tad different.

Over the past two years, lawmakers have cut state support to the three public colleges by $21.5 million, said Jack Warner, state commissioner of higher education.
Yesterday, he announced the colleges will have to cut another $6.1 million from their budgets, due to personnel cuts in the Department of Administration’s budget that recently came to light, bringing the total cuts to higher education closer to $27 million.

Not good. But why should we treat our state colleges and universities any different than we treat our local public school system?

Thanks to Projo reporter By Jennifer D. Jordan

How Much is URI Worth?

**Notice R.I. with the only minus number of -1.2%

"State-tax support for higher education climbed 7.5 percent in the 2007-8 budget year, to $77.5-billion, according to a national survey.... It was the highest annual increase since 1985."

Every year URI pleads for research funding with even the Economic Development Council throwing in. We have been at the bottom of the list for this funding for awhile. After 1970 the State reduced % funding, even while State revenues increased.

The following is from an 8 yr. old study published by URI's Dr. Logan. I'm also giving you some of his updated numbers here. If we're searching for economic engines for the present/future, seeking to attract good businesses here, and wanting the quality of life to improve for ALL out citizens- look no further.

The University of Rhode Island is the State’s only public Research University. It is also a Land Grant, a Sea Grant, and an Urban Grant institution. For each designation, URI has unique responsibilities as part of a system of national research universities.
The University is charged with conducting research for the public good and of educating the next generation of scientists, technicians, teachers, and leaders. URI differs from the other two Rhode Island public colleges in its commitment to offer advanced masters and doctoral degrees and by a commitment to sophisticated research and outreach. (link here)

....Research Universities conduct research in many applied fields neglected by industry or government. Examples of areas of investigation... include studies in health (other than pharmaceutical product development), alternative energy sources and energy conservation, and sustainable agricultural technologies which require lower use of fuels, fertilizers, and pesticides. Research Universities provide research and expertise needed for sophisticated environmental monitoring, ground water protection, land-use planning, and natural resource management and conservation

State funding currently accounts for 26 percent of the university's revenue (2008) while student tuition fees account for 62 percent. URI lost $5.5 million in state funding since last year, and more budget cuts are expected.

"We are one of the poorest-funded states in the country," Weygand [V.P] said. Carothers said URI receives $75 million from the state. According to the 2008 R.I. state budget appropriations, Rhode Island College receives $45 million, and the Community College of Rhode Island receives $49 million from the state.

Carothers [Pres.] said educating each student at URI costs an average of $19,000 per semester. In-state students are paying $8,000 in tuition and fees, and out-of-state students are paying $23,000 in tuition and fees. (Tyler Wills in The Good 5 Cent Cigar)

From the Projo:

The governor’s new budget plan will all but guarantee “a serious double-digit” increase in tuition at the state’s three public colleges....," said Higher Education Commissioner Jack R. Warner.
Further, the governor told the state’s Higher Education Assistance Authority to cut more than $1 million in need-based scholarships administered through the Rhode Island State Grant Program.

So what is the right amout for students to pay? How much is a public university worth to we the people? Our economic engine is right under our noses.

URI- R.I.'s Most Undervalued Resource

Recent news:

New School of Communcation being formed. "Major donors have expressed considerable interest in the school," said Brownell [Dean], noting that the naming of the school as well as endowments for the directorship, professorships, programs, undergraduate scholarships and graduate fellowships are being discussed. This new school will be formed (within different bldgs. for the present) in the Dept. of Arts & Sciences. The units are the College Writing Program, Department of Communication Studies, Department of Journalism, Graduate School of Library and Information Studies, and the Program in Film Media.

The School will continue to offer two graduate degrees: a master of library science (my degree) and a master of arts in communication studies—and five bachelor of arts undergraduate degrees: in communication studies, film media, journalism, public relations, and writing and rhetoric.. Currently there are about 1,200 undergraduate and about 300 graduate students majoring in the programs.

Keykavous Parang, an associate professor of biomedical and pharmaceutical sciences in the College of Pharmacy, has been awarded more than $1.2 million during the last year for his promising cell- and chemistry-based research on two of the world’s major killers---cancer and HIV, the virus that causes AIDS. The American Cancer Society has awarded Parang a four-year, $627,000 grant to continue his studies on Src, a cell protein linked closely to the development of breast, colon, lung, ovarian, gastric and pancreatic cancers. Gongqin Sun, an associate professor in the Department of Cell and Molecular Biology, is the co-principal investigator for both grants.

Today, URI joins more than 1,550 universities and other institutions on Jan. 31 in the nation’s largest teach-in in history. The event, called Focus the Nation, is a non-partisan educational initiative designed to engage educators and the public in developing solutions to global warming.

URI's Making A Difference Campaign seeks $100 million to recruit and retain outstanding faculty, enhance the student-centered campus experience, provide undergraduate scholarships and graduate fellowships, and fund cutting-edge academic and research initiatives. “... URI students will have a chance to participate in teaching, research, and outreach programs that work toward achieving peace in the world. With our nation engaged in war and facing violence every day in our cities and countryside, now is the most critical time to invest in peace and nonviolence. We can make a difference here and throughout the world.”

The Champlin Foundations has awarded the University of Rhode Island $560,860 for six advanced technology projects in the areas of film studies, journalism and film media, underwater and coastal archaeology, environment and life sciences, physical therapy, and the honors program. The 2007 grant awards mark the 25th consecutive year that URI and its students have benefited from The Champlin Foundations’ generosity.

Thanks to the grant writers, including Ignacio Perez-Ibanez of Newport, senior information technologist in Information and Instructional Technology Services.

URI- a better investment than film tax credits!

URI one of 290 Best in World

I head this on WADK one morning. The College of Business Admin. of URI is on the list of 290 Best in the World compiled by the Princeton Review. I think that is pretty neat.
My son is entrolled in this program & it is quite competitive with a long waiting list of applicants. My hubby think that Econ. would be a better major, but who knows. My son is happy with his choice.
I think that this is quite a coup & am surprised it did not make it to more local news sources. It's nice to hear good news & is a real credit to the State. The link has more details on the program.

Student Loans - Beware!

Fianlly the mainstream press has caught up with me! Today Projo has an article "Student debt viewed as brake on U.S. economy." I'm giving you another link as I can't locate theirs. I wrote about this last Sunday after they did an article on a new Newporter who has much bucks.
Firstly, the problems could be decreased by the fed'l government making more loans available in greater amounts. Colleges/univertsities could stop offering some of the perks & get their prices realistic. Parents could also begin refusing to pay the outrageous prices.
When students don't have enough bucks they can get quickie online loans & are often encouraged to do so by frequent mailings & colleges themselves (thank you Salve & P.C.)
Students would be wise to shop around but aren't the most astute borrowers. Why would we expect them to be? Colleges often push high-interest loans. The down side is payback time. And forget bankruptcy. The new laws prevent that on these loans.
Students who may or may not have parents co-signers (themselves besieged with debt) are no longer able to use the home equity market to pay for college. With promises of big bucks after attending colleges, students are willing to take the chance & borrow.
Trouble is that most of the time those jobs do not exist. Students can be stuck with these high interest loans for a long time with these businesses involved (often middlemen who originate the loan only) making big bucks off of these kids' high hopes.
Another problem with these loans goes back to the investors in these businesses & banks. There are no numbers yet from no-pays, but these loans promise to go bust fast than the snowbirds head south & harder than a day-off bagel. This market fall could hit harder than the sub-prime as these students have borrowed more money and with NO collateral.
This ain't good for any of us. These kids are out future and we want them fat, happy, and sucessful. Otherwise, who's going to support us, buy the goods - cars & houses, pay taxes.
These kids often end up taking nowhere jobs just to pay off their loans. More low-paid workers we don't need. It's the twenty-first neo-con Republican indentured servitude with a new twist - well-educated and often not from a poor background.
Be Aware, students! Ask questions! Check the full-time employment rate & salaries of recent grads of these expensive colleges, otherwise walk without a satisfactory financial aid package.
I graduated owing federal loans of $3000 at 3 1/2%. I thought I'd never walk away from it. I was lucky, though. I found a job in a federally impacted area teaching. Most of the loan was forgiven after ten years of work. At one point when I had no work, the bank was driving me crazy with phone calls. My Dad called them & they agreed to stop & I could pay them back when I started working again. Friendly neighbhood banks are usually parts of mega-conglomerates & don't work like that anymore (too bad).
But you & my son ain't gonna be so lucky, so you'd better be smart! The feds are some states are finally taking a look at this wild west of the lending business. N.Y. fined Salve & P.C. for accepting illegal "kickbacks" (shame on them for steering students to these expensive loans). Students need protection with these loans just like any other consumer. They need all the paperwork & info. They need to be given 30 days to shop around.
Theconservative rightneeds to step aside and start showing exactly where their family values are. Cheating kids so that a few can become quite wealthy doesn't cut it.

Robber Barons Still Alive and Well in Newport

"First Marblehead" of Mass. is under investigation by the State of N.Y. regarding its student loan practices. Congress is also planning on holding investigative hearings. Sen. Kennedy's proposed Student Loan Sunshine Act is an attempt to reign in large profits at students' expense. Lest you are not up-to-date, the 20 billion dollar student loan industry is quite lucrative. These loans are easily obtained (95% approval rate) and can be done on-line with no co-signers. They are also more appealing because of the low cap on fed'l loans and the downturn of the housing market. Parents are no longer able to borrow on appreciated housing values.

'"Last year private loans amounted to some $17 billion of the $85 billion in total new student loans; government-backed loans, which First Marblehead doesn't handle, made up the rest."'
First Marblehead does not loan money itself. It acts as a middleman for those needing loans and those giving loans with as much as a 13% advisory fee up front. These loans are packaged and sold. First Marblehead does not service accounts.

Former CEO & Chairman Daniel M. Meyer (a former member of that much-beleaguered class), a major stockholder, is a prominent new Newporter who specializes in purchasing large estates, golfing, and yachting. He does this with monies realized from packaging loans offered to students, often with college logos affixed to them inviting students to believe that these are cheap loans offered through colleges' benefices. Presently he is demolishing a ten million dollar 45 acre estate on Ocean Drive, "Avalon" and is thinking of purchasing the next-door estate. Good place for a new-age robber baron. Ah, but don't forget, he's also contributing money to Lucy's Heath while doing so. Not many of us can turn a building project into a charitable contribution (donating salvaged materials' income) to help with our taxes (sigh).

Meyers (age 42) was forced to (voluntarily) resign after giving gifts of over $30,000 value to a loan officer - one of his companies biggest clients. '"Meyers, known in the investment community as Jabba the Hutt because of his girth and cantankerous disposition, was forced to step down from his executive post, though he remains a major shareholder of the company."' These are verbotten as they tend to look a lot like bribes or kickbacks. Hey, he's just a generous guy.

Students now graduate with an average of $20,000 in loans, and as I learned last summer in knocking on doors, MANY in New England with its pricey colleges owe a lot more, many of them private loans. The average indebteness of college students has more than doubled in the past decade.

A high percentage of these students apply for private loans without ever filling out the forms (estimated 20%) for the much lower priced federal loans. I would attribute this to the LENGTHY and complex form the gov't in its great wisdom provides. They then turn to the private market, not realizing the extra monies (inc. fees) involved. These loans charge up to 4 pts. more than a gov't loan plus fees. '"Today, the average rate in the First Marblehead pool is nearly 11 percent. Interest rates on federal loans, by contrast, are capped at 6.8 percent. "' And these loans, unlike federal ones, are NOT wiped out by bankruptcy. Hey, someone has to pay for the Bentley.

While it is not legal for colleges to accept incentives for government loans, not so with private ones. Salve Regina just paid a fine $26,000 fine for listing some of these loan originators as "preferred" loans while not revealing that they rec'd inventive for doing so. Students and parents often do not realize that they would be better off shopping around.

'"The student loan industry could be in for more jolts. Policy makers and regulators say that there are dangerous parallels between the private student loan and subprime mortgage markets. In both, there have been phenomenal profits, aggressive marketing and, until the recent credit market turmoil, a healthy appetite from Wall Street investors."' These are bottom feeders who hungrily sucked in huge amounts of monies while Congress & regulators slept. They made plenty of monies for themselves while others are/were left holding the bag.

"First Marblehead" is now forced to submit documents regarding to this former CEO and its lending practices going back six years. Did I mention that it's stock which had been doing phenomenally well is no longer doing so?

Two district beneficiaries of Mr. Meyer's largess were Newport Councilors Charles Duncan and Steve Waluk who each rec'd maximum $1000 contributions from him in the last election - guess he's a Republican (go figure). Wonder if they'll return them?

'“There have been populations of students who have been overleveraged for 40 years,” he says. “The bigger problem is that we have students who have been underleveraged.”' Students? Underleveredged? That means your college education gives you a learning potential. You should leverage this with loans. As earnings for potential grads declines, you are being encouraged to incur greater debt that ever. '"Please note carefully that Fleece U degree cannot guarantee you a future income that will allow you to pay off your debts. Many of our most promising graduates are now, three or four years later, working for $8-12 an hour serving up lattés, counseling disturbed youth or creating business computer networks. They are set for a lifetime of debt, and we are proud that they first began to accrue it right here, on our lovely mock Oxfordian campus."'

So the next time you stand on the shore watching him sail by in his 60 ft. yacht, "Numbers" (he has two smaller yachts) give him a wave. And thank him for the recent donation of 20 mil to the Univ. of Va. After all, some of that college debt you're paying off may well have helped obtain his share of the American dream. And if you can't yet afford it (and you many never be able to), know that at the very least, you are "well leveraged."