The Highly Selective College Myth And The Terrible Student Loan Crisis

For my 50th birthday, I gifted myself with a real doctor’s car, a Mercedes. When I pulled out of the dealer’s lot, I felt like I was the king of the world. After a month of driving my new car, I realized that it was just another box on wheels.
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The house lights dimmed and my eyes focused on the panel of experts sitting at a long table. The host introduced each member, starting with the representative from our local community college, and ending with a counselor from the University of Chicago. She represented all of the “highly selective colleges.” It appeared that the panel members were positioned in a classic good, better, and best order.

You may be wondering what a highly selective college is. A selective college is one that accepts less than half of its applicants, and a highly selective college is a college that accepts less than one-third of its applicants. I attempted to determine who coined the selective and highly selective terms, but I was unsuccessful. However, these names have the ring of a good advertising campaign slogan.

A school can become a selective or highly selective simply by refusing more applicants. The Washington Post in an October 2017 article listed some of the ways that colleges become selective and highly selective. One way is to buy the list of names of individuals who have taken the ACT and SAT college admission tests, and to then market your school directly to those students, even when your college has no intention of ever accepting them. This not only reduces the percentage of individuals accepted, but it also provides revenues to the college via application fees. A second technique is to use multiple applications cycles, like early decision.

As an example, Vanderbilt University filled 54% of its freshman positions via early decision rounds. In other words, only 46% of first-year slots were available for the majority of the applicants, thereby reducing the percentage of students accepted. It is unlikely that applicants accepted by early decision will be offered merit scholarships, as they have agreed to a binding commitment to attend. The college has them and doesn’t have to worry about the student getting a better offer elsewhere. This makes it more likely that a higher percentage of these students will come from affluent families who can afford to pay full tuition.

You may hear statistics that promote the benefits of attending a highly selective school. In a 2010 article, the New York Times cited a study from the RAND corporation that showed strong evidence that graduates from highly selective colleges did very well. The study looked at participants who had graduated ten years prior and found that individuals who attended highly selective colleges made 40% more income than individuals who graduated from the least selective colleges. On face value, it would seem that highly selective colleges possess some “secret sauce” for success. However, isolated statistics rarely tell the full story. Students from highly selective colleges are often very motivated and enter college as excellent scholars. In addition, they can be more affluent and thereby have greater social and business connections. Graduates for the least selective colleges can be at the opposite end of the success spectrum.

A 2017 Atlantic article revealed that when students with similar SAT scores were compared there wasn’t a significant difference in overall earning between highly selective and less selective colleges. Factors that have a more direct impact on someone’s earning potential include the type of degree (engineering vs. social work) and the individual’s drive, talent, social skills, and motivation.

You may also have heard that 30 of the top 100 CEOs from fortune 500 companies come from Ivy League schools. This sounds impressive, but note that 70 of the top 100 CEOs did not. And let’s not even talk about university dropouts like Microsoft founder Bill Gates, and Facebook founder Mark Zuckerberg.

Do graduates from highly selective colleges have higher job satisfaction? A Journal of Labor Research article states the opposite. Highly selective college graduates were less satisfied with their job than individuals from less selective schools.

The subgroups that did seem to show a positive financial benefit from attending a highly selective college included individuals whose parents did not have a college degree, as well as blacks and Hispanics. The article speculated that these students benefited from the networking and connections that they made at their universities.

Highly selective colleges are typically more costly than other schools. Harvard’s 2015 average annual cost for a student was $64,400.00, compared to $24.673.00 at the University of Wisconsin, Madison. Both schools offer excellent educations, but a year at Harvard is almost three times as expensive. Many universities offer some financial need aid, but highly selective colleges typically do not provide academic merit scholarships.

The pressure to get into a highly selective school can be enormous and can be both internally and externally generated. I have known students who felt that they would be a failure if they didn’t get into the highly selective school of their choice. Parents sometimes use their child’s college acceptance as a personal point of pride, as well as a license to brag. High schools loudly celebrate when one of their students is accepted into a highly selective school. Parents talk about giving their kids the “college experience” as if going to an institution of higher learning was akin to a ride at Disney World. All of these factors contribute to the myth that a degree from such an institution is magical, which it is not. In my work life, i have talked to parents plagued with guilt because they didn’t have the resources to send their child to the school of his/her choice. It should be noted that the student’s choice often had little to do with academic reasons and more to do with setting, and social life.

A 2018 Forbes article headlined that the price of college is increasing almost eight times faster than wages. A 2012 report from the Huffington Post cited that the cost of a college degree has increased 1120% over the last thirty years. These numbers apply to all colleges, but highly selective institutions (as stated above) are the tuition leaders. There are many factors for these outrageous increases. However, a significant factor has been the increase in “easy money.” Students can take out almost unlimited secured and unsecured student loans, as can their parents (Parent Plus loans). This surplus of cash has allowed colleges and universities to raise their tuition and fees to unprecedented levels.

College loans have become big business, and lending benefits both schools and loan institutions. Sallie Mae was under the control of the government, but in the 1990s a private lender bought the Sallie Mae name for five million dollars. The new private Sallie Mae has been reported for unethical practices, but many parents associate the name with secured government loans and assume that their child will be treated reasonably and fairly.

Student loan debt is currently at a staggering 1.5 TRILLION dollars and rising. There are countless stories of student and parents who signed for loans, later noting that they had no idea what they were doing at the time. Students get not only subsidized loans but also unsubsidized ones. If the borrower can’t pay back the loan due to hardship, it may temporarily go into forbearance. This may sound like a good idea to the student, but it isn’t.

If a loan is in forbearance, it continues to accrue interest. That interest can then be added to the principal of the of the loan in a process called capitalization. There are cases where a loan has almost doubled from its original value. Imagine that you borrowed $60,000.00 and later discovered that you now owe $100,000.00. For lenders, the more money you are in debt, the more money they make. The government guarantees many student loans, so if you don’t pay them back, they will get that money from the US treasury. There is little incentive for companies to work with borrowers.

Forbes in a 2018 article noted that student loans are now the 2nd highest consumer debt, behind mortgages. The average debt per student is a staggering $37,172.00, but this only tells part of the story. Over two million students owe over $100,000.00, four hundred and fifteen thousand students owe over $200,000.00, and there are currently one hundred students who owe over $1,000.00000 in student loans.

It is easy to blame students for the loan crisis, after all, they signed on the bottom line. However, the massive scope of the problem suggests that the blame also needs to be placed on lenders and colleges, as they did not inform students and their parents adequately. Many students approach college decisions emotionally. They sign for loans with the perceived idea that they will make good money after graduation, and that they will have no problem paying the loan back. Yes, students need to be responsible, but so does both the lender and the college.

Many college students study majors that do not provide a path to a high paying job. Also, many students who start college never obtain a degree. Both student and Parent Plus loans cannot be eliminated by bankruptcy. This law was enacted in the 1970s with the industry citing a 20% student loan default rate at that time. However, only a tiny fraction of that default rate was due to students filing bankruptcy. A student loan debt is yours for life and it will impact everything from your credit score to your ability to get hired.

When a person stops paying a loan, it continues to grow with little chance of forgiveness. Search, “Dave Ramsey, student loans” on YouTube, and you will find the story of a teacher who owes $160,000.00, and dentist who owes over $1,000.000.00 in student loans. Couples that marry enter that union with their combined student loan debt, sometimes making it impossible for them to live independently.

We have a generation of graduates who are often underemployed and hopelessly in debt. They can’t buy a new car or purchase a home. They wonder if they can ever afford to have children. These are the young adults who did the right thing, they delayed their lives and got an education. Now they feel betrayed. Their financial insecurity impacts all of us and has a negative impact on the US economy.

Colleges are run as big businesses and employ those same marketing techniques as fortune 500 companies. It is essential to approach higher education as a consumer, rather than a student. It is crucial to squarely examine the cost to benefit ratio when making any college decision.

It is ridiculous to think that everyone should go to college; there are other paths to being successful in life. I know of many individuals who are skilled tradesmen. These people do very well financially. As bonuses, their earnings started after high school, and they have zero school loan debt.

When a college degree was less expensive, it made sense for some individuals to obtain less marketable degrees. Students were encouraged to pursue their passion and to broaden their horizons. However, college is becoming a trade school; a place where you gain a marketable skill. It makes no sense to saddle yourself with $100K of student loan debt for a profession where you will only be making $30K a year. Passion for an area of study can run cold when you can’t afford to put food on the table.

College is supposed to prepare you for life. However, massive debt cripples you. To circumvent the debt problem students and their parents need to be creative and think outside the box. Applying to a college because you liked the look of the campus, its sports complex, or its location makes little sense in today’s market.

  • Consider a community college for your first two years. English 101 and Math 101 are pretty much the same wherever you go. You may get more personalized attention at your local school.
  • Explore any scholarship options. Merit scholarships can be given by outstanding schools who want to attract the best and brightest to their institution. If you are a top student, it is nice to be the big fish in a little pond.
  • Strongly consider the cost-benefit ratio of your chosen major.
    If you choose a low paying major, think carefully why you are doing this, and have a clear idea on how you plan to make a living that includes paying off your student loan debt.
  • For-profit online schools often have high tuition and a low graduation rate.
  • Your community college may offer the same certificate program that a private school provides at significant savings.
  • Realize that many interesting sounding careers have few job openings. You may want to become a music recording engineer, but good luck in finding a job in that field. Check job availability before you start a degree or certificate program.
  • Choose the best school THAT YOU CAN AFFORD, rather than the best school that accepts you.
  • Consider attending a commuter school to save thousands on room and board fees.
  • It is likely that you will need to take out a loan. Stick with government subsidized loans, and set a limit to the total amount that you will borrow throughout your degree. Don’t use loans for everyday expenses.
  • Use online calculators to understand what your monthly payments will be.
  • Understand loan terms, such as forbearance, un-subsidized/subsidized loans, and capitalization, and know how these terms impact your loan.
  • Schools and loan companies are looking out for their interest, not yours. Accept this fact and approach any offers accordingly.
  • Consider a certificate program instead of a baccalaureate degree, if appropriate. Community colleges offer many such programs.
  • Consider a trade. A practical skill combined with ambition and a little business sense can make for an excellent life.

I currently have two daughters in college. The oldest of the two attended IMSA, which is considered the top math and science high school in Illinois. Also, she was a National Merit Scholar. This latter fact granted her free college tuition at some colleges and universities. When we met with her guidance counselor, we were surprised when the counselor informed us that the majority of the school’s National Merit winners did not take advantage of free tuition, opting to set their sites on selective universities. I am thankful that my daughter bucked this trend and she is now completing her degree in Chemistry and Russian at an excellent state school.

My other college student was accepted at Vanderbilt and Washington University, both selective schools. She is also an accomplished student, but neither school offered her any merit-based money. However, many other colleges and universities did offer her money based on her academic performance. She is currently attending a wonderful Midwest university, majoring in Public Health. I am so grateful that they will not have the burden of tremendous debt that many students face. My graduating daughter is strongly considering applying to the Peace Corps. She would not have this option if she were facing the repayment of massive student loan debt.

Dear readers, it is essential for all of us to explore our dreams. However, the wise person makes this discovery sensibly and thoughtfully. Happy school hunting, and please share this post as I believe that the information it contains can help many parents and students who are facing the challenge of college.

Sleeping In My Driveway

If I were a car, I would probably be a minivan. Sensibly designed with just enough flash to make me interesting. Ferrari’s are exciting, but if you need to get the job done you hop into a reliable and roomy Honda Odyssey.

Are you a person who likes to fly by the seat of your pants? I don’t fit into that category, I’m a planner and a tester.

A few months back my friend Tom and I installed a mains power port on the side of my campervan, and in the weeks afterward I created a simple power distribution system for the vehicle. However, I never operated it.

Dear readers, a Midwest October is upon me; perfect to do a little van exploration. With nighttime temperatures in the high 20s (-2C) it was time to test several different camper systems.

Early yesterday I pulled out the 30 Amp extension cord from the camper’s storage bin and attempted to connect it to the van’s receptacle. Crap! It wouldn’t go in. The pins on this type of plug are circular, and with some study, I was able to determine that they were slightly out of alignment. A little bending with my multi-tool and the plug slid in and mounted.

I went back into my van’s storage and located the $16 Walmart electric heater that I had purchased a few weeks earlier. I plugged it in, turned it on and… it worked! I was then off to the basement to find my 25-year-old sleeping bag. It is old and flattened, but it is also extra-long and thereby perfect for my 6’3” frame.

With heater and bag in place, I was ready to do a test run. The wilds of a National Park, you may ask?  No, my driveway, of course! When I told Julie about my plans to sleep in the driveway, she nodded in acknowledgment. After 25 years of marriage, she didn’t feel it necessary to comment on the absurdity of my vision. My more adventurous friend Tom thought that I should try to sleep in the cold with the heater turned off. Likely, as some sort of manly exercise. It should be noted that Tom possesses an ultra high quality and very warm REI sleeping bag, as opposed to my 25-year-old “pancake.”

As bedtime approached, I gathered my camping essentials:  water bottle, laptop, and iPhone. I traversed the 30 feet from my front door to the camper and entered with anticipation. It was cold! On went the electric heater powered by my garage’s outlet. I reached down and powered up the van’s 12V power system, and then flipped on its interior lights.

The heater seemed anemic, and I thought I would be spending the night freezing. But, in short order the van warmed up. I settled in my sleeping bag, fully dressed including a stocking cap. Like any other wilderness he-man, I opened up my laptop and checked Facebook, braving a weaker wifi signal from my house.

I worried that I wouldn’t fall asleep, as I fell asleep. Comfortable, warm, sleeping in a van parked in my driveway Silly for Dr. Mike, a 65-year-old physician, exciting for the 9-year-old Michael inside of me.

The outside temperature dropped to 29 degrees, but my little heater plugged on. In fact, I had to turn it to low in the middle of the night because I was getting too hot.

I write this the next morning after following my tradition of walking to Starbucks. Here I sit at my usual table, typing and sipping coffee. Mission accomplished.

My adventure may seem childish to you, or it may not. However, it was fun and informative for me. I tested out several of my camper’s systems and felt the security of reassurance. I had a “backyard” camping adventure. I had a good time.

Dear reader, so often we get locked into doing only “appropriate” behaviors. We don’t allow ourselves simple pleasures because we have deemed them childish. We criticize our children, “You are too old to do that.”

I am here to tell you that it is OK to explore the child in you because that is the part of you that still possesses wonderment. I challenge you to rediscover that aspect of you. I believe that you will grow just a little bit more in the process.

My $16 Walmart heater, and 25-year-old sleeping bag.
View of my front door from my sleeping quarters.
Plugged into the house’s AC power.

September Song

Oh, it’s a long, long while
From May to December
But the days grow short,
When you reach September.
When the autumn weather
Turn leaves to flame
One hasn’t got time
For the waiting game.
September Song
M. Anderson-1938

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We sit around the kitchen table. Julie, my wife. William, my 17-year-old son. Diana, my 3-year-old granddaughter. Sebastion, my 9-year-old grandson. Me.

In front of Sebie is a large stack of conversational cards. He pulls one and reads it. “If you could always live in your favorite season, would you?” We go around the table, and all participants answer, “No.” We agree that each season possesses its own magic. As we tire of one season, we are given the gift of a new one.

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I pick up my sister Carol from her apartment and drive to Arrowhead Country Club to celebrate her 80th birthday with a Saturday lunch. We talk, nibble, sip, and talk some more. “I have never been happier. This is the best time of my life,” Carol says in earnest.

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I walk to Starbucks in the pre-dawn. I pass by a tree, its leaves turning a golden orange.

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The fall of my life is upon me, the days are growing shorter. Time is accelerating.

Would I want to go back to any other time in my life? Childhood? Early adulthood? Middle age? I don’t think so. Each phase of my life had its advantages and its disadvantages. Each stage of my life added to my wisdom and to my appreciation of the gift of life. I don’t want to give up the present to live in the past.

There are disadvantages to being 65. I have more wrinkles on my face than hairs on my head. My stamina is a percentage of what it was when I was 30. My short-term memory is less acute than in the past. I am more inclined to take naps.

There are advantages to being 65. I care less what others think of me. I am less concerned with what I don’t have and more satisfied with what I do have. I realize that most happiness lies in small things: dinner with my family, coffee with a friend, learning new things, giving back.

In January I left my private practice of 30 years and gained perpetual 4 day weekends. As a person who likes to move forward, I had developed a productivity plan in anticipation of this change. That initial plan has been only partially realized. Frankly, I’m OK with my partial compliance.

I am writing, taking pictures, and converting a van into a camper for future adventures. I have made a weak effort to organize a basement storage room. I’m not practicing the guitar, and I have not started the process of learning a foreign language. I think that this latter objective may be on a permanent hold.

I am spending a lot more time socializing with people who I care about. I am stretching my introverted boundaries. I am learning about construction and power tools. I know that this last fact may seem odd for an old retired doctor, but I assure you that it is not. I come from a blue-collar background, but I was never mentored in the art of the Sawzall. One of the reasons that I gravitated to science was that it was an entirely novel discipline in my family, and somehow that fact made it OK for me to teach the subject to myself.

There is a joy in learning those things that I was so curious about as a child. I see the similarities between medicine and construction. Each discipline requires training and practice. Each discipline follows a specific methodology and is protocol driven. However, with building the fruit of your efforts is immediate and tangible.

I have spent much of my life goal-directed; focused on practical knowledge. However, I appreciate learning something that serves no personal purpose in my life. Learning for the sake of learning is my cocaine.

At 65 my world isn’t shrinking, it is expanding. I wake at 4 AM anticipating what that day will bring. What will I see on my walk? What will I write? What new thing will I learn? What projects will I tackle? What adventures will I have with those people that I care about?

The days may grow short in the September my life, but they are still days to be celebrated. Today I know more than I knew yesterday. I have connected with others more. I have done more. Each day is a gift, never to repeat.

Dear reader, celebrate today!

Change Your Life With A Gratitude List

Why is it that I can focus on a single negative in my life while ignoring so many positives? How can I change this waste of energy?

I think my thinking pattern is similar to many others. I can let a single worry dominate me. Typically, I find that this stance is a waste of my time and energy. Yet, I continue to do it.

I have made attempts to change my behavior, and some of my efforts have been more successful than others.

I have gotten better at letting go of trivial slights. The driver that cuts me off no longer spoils the rest of my morning.

I also employ cognitive techniques to correct my perceptual distortions. When I get upset about something, I will pull back and logically explore the problem and reframe the information at hand in a more realistic way and less catastrophic way.

Also, I work hard to let go of situations that I have no control over. I’ll, “Let go and let God.”

The above techniques all fall into what I would call a pathology model. In other words, they focus on lessening my current worries. The problem already exists, and so I actively treat it.

Good doctors not only treat problems they also practice preventive medicine. I would like to think of myself as a good doctor and what I advise my patients can also apply to me. So how do I prevent worry? There are many ways, but the one that I would like to share with you today is called a gratitude list. This technique is simple, but it does require some practice and thought.

The positives in my life far exceed the negatives. However, I can take my blessings as expectations and thereby ignore their significance. A gratitude list is one way to acknowledge these good things, and when I do this, I automatically have a more positive outlook of my life.

Here are the steps I use.

-Once a day I think of 3-5 things that I’m grateful for. They can be significant things or minor things. For instance, I might be thankful for my health (major thing), and I also may be grateful for having coffee with a friend (minor thing).
-I make an effort to vary the things that I’m grateful for. In other words, I don’t repeat the same list every day.
-Sometimes I’ll write down my gratitude list, sometimes I’ll only make a mental note.
-I don’t just write down a list, I also think about each example on that list. I may recall that I’m no longer on any medication and that I’m able to walk long distances once again. I might think about a walk that I took and how much I enjoyed it. For my second example, I may be grateful for having people in my life who want to spend time with me. I might remember the conversation that I had during my coffee klatsch, or how much I enjoyed the taste of the coffee.
-If possible, I recall my gratitude list during the day, repeating the above technique.

When I first started this daily exercise I had trouble coming up with unique things to be grateful for. However, over time, it became easy. The trick is to limit your list to a manageable number. I find that 5 examples works for me. I want to have time to think about my list, I don’t want to write down a lot of meaningless examples.

By doing this exercise regularly, it has become evident that I have much to be grateful for. When I think about my life in positives terms I feel more positive about myself, I attract more positive people, and many of my problems feel more trivial. All of these benefits for the cost of a little time!

I would encourage you to make a gratitude list every day for the next 30 days. Let me know if it makes a positive difference in your life. If the answer is yes, it is easy to incorporate a gratitude list into your daily routine.

Dr. Mike