Also in this playlist...
This transcript is automatically generated
Horrible economy is creeping like -- seems right on to the front door one of America's most prestigious universities.
Hollywood in Cambridge mass announcing its endowment has lost get this.
Eight billion dollars in just the last four months.
Of course it's on paper.
It's a 22% drop from the 37 billion the school had -- its portfolio at the end of June and -- the sharpest endowment drop in modern history.
The Ivy League institution that's taking a quote hard look at staff levels and compensation at Harvard.
And these days higher education.
Seems to mean higher cost according to a -- study 49 states got an F.
When it comes to make college affordable only California passed that it got to see.
The affordability grade based on how much of the family's income goes to paying for school.
Among those that failed Illinois where the average cost of attending a public four year university has jumped from nineteen present the family's income in 99 and 2000.
In 2007 and 2008.
It's up 29%.
-- this now from Washington the secretary of education Margaret spellings look good to see it.
Has Shepperd thank you for paying attention -- the sudden great important subject the only way to keep -- viable is to educate the future leaders of the place if we can't afford to educate them we are in big trouble.
Well that's right as she said just as we.
Aren't made higher education more than ever it's getting more and more on affordable sadly -- part of this that the states are contributing as much as they used to because the states don't have as much as they used to.
Well that's part of it yes but as says he said in the opening higher education in the cost of higher education really go -- year after year sort of despite how much aid that we put in at the federal level or even at the state level and so I think.
You know we need to look at more fundamental structural things and just how much do we spam out.
We need to start asking things like you know how are those money spell out what can kids expected.
No one be able to deal and what their post employment prospects after they leave college so that we can make sure that.
We're using our resource is really much more wisely.
Some of the hurdles to learning now caps on freshman enrollment and reductions in overall head counts.
Hefty tuition increases -- offset losses in the state funny as -- mentioned.
Some continued difficulties getting private student loans will get into that.
Plus higher admissions standards and tighter application deadlines all of this from our corporate cousins at The Wall Street Journal admissions standards going up sounds great.
If anyone can afford to get in there.
Well that those conditions really add up to come -- perfect storm.
Top cut and put all of those things on top of the job market that is demanding.
More and more skills.
All the time and we are losing ground in American higher education the moment and that that is bad for our country.
So what are we going to do about it I think we need to make sure that we have.
More affordable higher education in the way of community colleges and public institutions.
That we make sure that our kids are going to show up at the college store really ready to be successful.
Students and taxpayers today spend a lot of money.
On remedial work that should've been learned -- tougher skills that should have been learned in high school so we need to make sure our high school students are fully prepared.
When they get that college that'll save time and money right there.
From talking to some educators and a great American public university Elvis -- have been a pretty well that they're talking about how much their budgets are having to change now.
Because the future looks even more grim as the money from the states.
He's just not gonna be coming they're trying to we will reworked budgets trying to keep teachers in there trying not to route to increase tuition but it looks like it's about to get much much worse not better.
Well I think we as as citizens and taxpayers have to.
Start to expect those sorts of decisions to be made and in our big institutions is that realistic for us to have.
Every single higher -- institution offer every single program -- no -- of throwing not so we need the did you don't start getting good value at our local community colleges started in your higher education where you can get those basic skills courses here.
You know fundamentals before you don't want it to bigger institutions and specialized by discipline so.
Those are the sorts of things that are are gonna absolutely have to happen in these tight Financial Times.
Margaret spellings the US secretary of education I guess if you're planning your into the you're giving if it's something that you did you always look to your favorite institute of higher learning to drop a few dimes on right.
And I made it this year -- And so your own children obviously start saving for their college.
It as a -- if you count.
Yeah and there's some great programs out there for it for that too.
And then there's a lot of tax deferment goes along with -- -- -- give up 10000 dollars a year state to state to state your great great things look into.
The look at college dot gov are -- web site.
Explains all of those sorts of tools that are available for kids and families so they -- -- -- and maximize their federal financial play together as much support as -- -- college dot -- do your homework.
Good that's right thanks so much.
Thanks all right he did.
Filter by section