Pluto and pentaquarks boost non-profit science 14 Jul 2015 NASA’s distant mission has gone viral, while European researchers have accidentally proven a 50-year-old theory about matter. Open-ended research at, say, Google is valuable, but government-funded basic science offers unmatched intellectual gains and unexpected practical benefits.
Prison break frees Columbia to make a difference 9 Jul 2015 Divesting from private jailers may actually boost the Ivy League school’s influence over a bloated U.S. penal system. Investments that pay off if inmate populations drop rather than rise can prompt fundamental change. The profit may be less, but the returns to society priceless.
Student loans flunk lessons of Wall Street crisis 9 Jun 2015 Uncle Sam may forgive up to $3.5 bln of debt for students who attended a now-defunct college network accused of fraud. That’s good for grads. But the government’s shoddy approach to lending to its students smacks of banks in the mortgage boom. Time to pay more attention in class.
May Paulson’s Harvard gift spark plutocrat rivalry 3 Jun 2015 The hedgie’s $400 mln donation could soon be surpassed as the university’s largest, if recent history is any guide. Others like Bill Gates give more creatively, but engineering education is hardly a bad choice. Inflation – and competition – are welcome in the charitable context.
Junk status complicates Windy City’s fiscal fix 15 May 2015 A Moody’s downgrade on over $8 bln of Chicago’s debt reflects years of mismanagement. But the move has a rare whiff of credit-agency activism that could spark a downward spiral. No wonder the city of big shoulders is angry. Luckily its mayor, Rahm Emanuel, knows how to brawl.
Harvard’s shareholder advocate drops the mic 11 May 2015 A push led by Lucian Bebchuk to subject all board directors to annual votes has ended. Critics including attorney Marty Lipton blasted the program as deceptive and maybe illegal. Even so, it helped persuade some 100 big companies to overhaul elections. That sounds like success.
LinkedIn adds mission creep to its bulging résumé 9 Apr 2015 The job-seekers’ social network is buying online learning company lynda.com for $1.5 bln. LinkedIn claims both companies share the same ambition: “help professionals be better at what they do.” That fuzzy goal may encourage the firm to take on jobs for which it’s not suited.
Review: If only U.S. elite education didn’t matter 27 Mar 2015 Many American parents and teenagers believe a top-flight university degree is a necessary ticket to success. A new book tries to calm them down. The sentiment is comforting, but the statistics don’t quite support the meritocratic message. The Ivy League still gives a big edge.
M&A world could teach niche U.S. colleges 13 Mar 2015 The collapse of liberal arts enclave Sweet Briar is bad news for cash-strapped schools across the country. Sagging enrollment has pushed some institutions to offer debt-shy students big discounts on tuition. But that risks a spiral. Merging may be one way to ease the pressure.
Harvard’s new fund boss needs a California lesson 26 Sep 2014 Stephen Blyth is taking over the university’s $36 bln endowment at a time when its investment strategy is faltering. Its 2014 performance was even bested by Ivy rival Yale. Calpers’ decision to ditch fee-heavy hedge funds may give Blyth a useful roadmap for reviving returns.
Value of college in U.S. is far from a no-brainer 16 Sep 2014 Despite higher university enrollment, wages are falling for young Americans. Research from the New York Fed shows higher education isn’t always a good investment. Some degree programs aren’t paying off. Loading up on debt to pay soaring tuition fees is riskier than it seems.
Edward Hadas: The stupidity of student debt 2 Jul 2014 Education loans keep growing in the U.S. and the UK. The new reliance on debt is financially dangerous and shows weak economic thinking. The sensible way to fund the social good of higher education is pay-as-you-go: with affordable tuition, donations and government money.
Harvard could get smarter about its endowment 11 Jun 2014 Jane Mendillo, who ran the Ivy League university’s $33 bln portfolio for six years, is leaving. Predecessor Mohamed El-Erian is partly to blame for crisis losses, but Harvard overpaid for mediocre returns. Less of both Yale model investing and Wall Street pay may be in order.
Obama student loan fix spares rod, spoils borrower 9 Jun 2014 Extending repayment caps and debt forgiveness to older graduates gives too many high earners a break. Making everyone pay a flat percentage of income would be simpler, fairer – and cheaper for taxpayers. It could also deliver a valuable lesson in financial responsibility.
Edward Hadas: Three Ms for economics re-education 21 May 2014 Students of the dismal science think their teachers are letting them down. The reproaches are just, but their reform agenda is insufficiently radical. The academic discipline of economics should reconsider the role of markets, pay less heed to money and allow for more morality.
American universities need lesson in capitalism 26 Dec 2013 Spiraling degree costs are an economic drag, with $1.2 trln of student debt and parents’ savings hit. Yet graduate income is falling. President Obama is pushing for better value for money. A few colleges are already showing how education can pay off for students and country.
Pearson makes a tidy turn in the merger market 29 Nov 2013 The UK publisher is selling Mergermarket to private equity at an enterprise value of 382 mln stg - far more than it paid for the news and data firm. Loyal subscribers, good cashflows, and potential bolt-on deals are probably bigger draws for the buyer than any M&A resurgence.
Will the real Michelle Bachelet please stand up? 18 Nov 2013 After navigating Chile through the 2008 crisis she now wants another shot as president. But on education, tax and the constitution she wants to reverse factors that have allowed Chile to stand out from its neighbors. Striking a balance between business and students will be key.
Trump gives for-profit education an even worse rap 26 Aug 2013 American schools looking to make a buck have been scrutinized recently for taking students’ money but providing lackluster results. The Donald’s foray into the industry did it no favors. New York’s $40 mln lawsuit underscores the need for institutions to make credentials clear.
Obama college cost-cutting plan gets gentleman’s C 23 Aug 2013 The president aims to hold down tuition and loans by rating schools according to the value they deliver. But a proposed cap on debt repayments could encourage even more student borrowing. That and similarly counterproductive details pull down an otherwise useful program’s grade.