Financialization of Higher Education in the News

New Report Outlines Higher Education’s $2.7 Billion ‘Debt Bomb’ in TIME:

But it also has a real human cost – schools that are indebted and struggling to meet interest payments pass on those costs to students, which is one key reason that average per student debt has risen from $29,400 to $35,000 over the last three years.

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How the Financing of Colleges May Lead to Disaster! in New York Review of Books:

But the financialization of education and the debt bubble it has brewed raise a deeper question: Who, exactly, is higher education for? Who is it helping? While a four-year degree does ensure a job paying more than $15 an hour for most graduates, it is no longer a ticket to social mobility for the poorest.

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Harvard Borrows Big to Cut Cost of Crisis-Era Derivative Losses in Bloomberg:

The Cambridge, Massachusetts-based university used the derivatives to lock in borrowing costs for a planned campus expansion. When central banks worldwide slashed interest rates because of the crisis, the rates the university agreed to pay made the contracts increasingly valuable to the banks. To avoid posting millions in required collateral, Harvard canceled the deals instead.

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Study Finds MSU Lost Money in Bank Deals in State News:

‘Though we’re able to do this research and get to the bottom of these interest rate swaps and what has happened at Michigan State and across the country, that wasn’t necessarily the only financial product that had been sold and affected the mismanagement of money,’ Feather said. ‘This is just one product. … And maybe we need to start paying attention to it.’

Read the full piece here.