March 9, 2012
HIGHER EDUCATION BUBBLE UPDATE: Tuning In To Dropping Out.
In 2009 the United States graduated 89,140 students in the visual and performing arts, more than in computer science, math, and chemical engineering combined and more than double the number of visual-and-performing-arts graduates in 1985.
There is nothing wrong with the arts, psychology, and journalism, but graduates in these fields have lower wages and are less likely to find work in their fields than graduates in science and math. Moreover, more than half of all humanities graduates end up in jobs that don’t require college degrees, and those graduates don’t get a big income boost from having gone to college. . . .
The obsessive focus on a college degree has served neither taxpayers nor students well. Only 35 percent of students starting a four-year degree program will graduate within four years, and less than 60 percent will graduate within six years. Students who haven’t graduated within six years probably never will. The U.S. college dropout rate is about 40 percent, the highest college dropout rate in the industrialized world. That’s a lot of wasted resources. Students with two years of college education may get something for those two years, but it’s less than half of the wage gains from completing a four-year degree. No degree, few skills, and a lot of debt is not an ideal way to begin a career.
Nope. Under my proposal, of course, colleges would be on the hook for defaulted student loans, which would provide an incentive not to produce dropouts.
Plus this: “Our obsessive focus on college schooling has blinded us to basic truths. College is a place, not a magic formula. It matters what subjects students study, and subsidies should focus on the subjects that matter the most—not to the students but to everyone else.”
Related: Statistics on college completion.