Colleges Got Your $, Then Played Games

Colleges are spending Mom & Dad’s rising tuition money “like there’s no tomorrow” for buildings, progressive administrator salaries, sports & woke programs with hardly a peep in protest. Sink hole has any end in sight?

As the WSJ article noted, “The nation’s best-known public universities have been on an unfettered spending spree. Over the past two decades, they erected new skylines comprising snazzy academic buildings & dorms. They poured money into-big-time sprots programs & hired layers of administrators. Then they passed the bill along to students.”

Wanna know the kicker? The federal government, and especially since the Obama Administration took over most of the student loan programs, the colleges were incentivized with the endless federal money made available to raise tuitions until FAMILIES dropped, then, spent that “revenue” until THEY dropped (or, should have dropped). Now, the WSJ says, “the nation’s $1.6 trillion federal student debt crisis is having an impact on the colleges’ financial well-being as well. Penn State, e.g., “now has a budget crisis even though it’s among the most expensive public universities in the US.” After examining the financial statements of 50 “flagship” universities, in fact, the newspaper found the average spending by those institutions rose a whopping 38% between 2002 & 2022. In short, “the schools paid for it in part by pulling in tuition dollars” that were rising as fast as Uncle Sam could print the paper money needed to underwrite its loans, whether they could be repaid or not. “These places are just devouring money,” said Holden Thorp, who was chancellor at the University of North Carolina at Chapel Hill from 2008 to 2013. He warned the spending spree is unsustainable. You think?

Davd Soul