Tag Archives: New York Times

Student loan debt outweighs credit card debt

Today the New York Times reported that last year, for the first time ever, student loan debt outweighed credit card debt among Americans. And since college admissions seem to be getting more competitive while tuition costs continue to rise, that number is expected to grow past 1 trillion dollars this year.

But economists don’t seem to be worried. According to Susan Dynarski, a professor of education and public policy at the University of Michigan:

When you think about what’s good debt and what’s bad debt, student loans fall into the realm of good debt, like mortgages. It’s an investment that pays off over the whole life cycle.”

Many parents and students embrace this view, too, thinking that, when it comes to college, price=quality.

But some argue the opposite, claiming that student loan debt is just like any other debt and can threaten a person’s financial stability–even before they’ve started working. We’ve talked about Portfolio author Zac Bissonnette’s views on this subject before. His book Debt-Free U, released last year, argues that prospective college students should shirk the fancy private college labels in favor of a cheaper, but equally valuable, education. In a recent post on AOL’s Daily Finance blog, Bissonnette cited a study comparing the average incomes of those who attend elite colleges with those of less-selective schools. The study, conducted by economists Stacy Dale and Alan Krueger, reports that:

When we adjust for unobserved student ability by controlling for the average SAT score of the colleges that students applied to, our estimates of the return to college selectivity fall substantially and are generally indistinguishable from zero.

Of course some elite colleges are relatively affordable (e.g. public schools like the University of California and the University of Michigan), and well-endowed universities often offer scholarships and grants to low-income students who get accepted, but if you’re looking to send your kid to school (or trying to figure out how to afford your own tuition), it never hurts to consider all your options.

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Wrinkle-free exercise

Sometimes, usually in the middle of the afternoon when my eyes have started to glaze over from staring at my computer screen and my wrists start to feel stiff from typing, I feel like running around the office, doing a few quick push-ups, or holding a plank pose for a minute to get my blood flowing. Unfortunately, I have a cubicle, and I don’t think my coworkers would appreciate my spontaneous bouts of vigorous exercise in the middle of the floor.

Fortunately, fellow publisher Universe has resurrected a book originally published in 1908 that offers simple, office-friendly exercises (for men, though I guess us ladies could also participate) such as the “Going Up” and the “Stair Master.” I think I might try some of these out this afternoon, though I probably won’t look as suave as the guy in this New York Times photo shoot inspired by the book.

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Good news for business students

The New York Times reported this morning that the job outlook for this year’s B-school grads is looking up. Although jobs are still scare and competition for those that remain is fierce, banks have become more optimistic about the market turnaround and have started to approve more new hires and are spending more time recruiting on campuses than they did last year.

“There’s reason for students to be optimistic,” said Tracy Handler, a spokeswoman for the M.B.A. Career Services Council, an association of business school career advisers. “Any signs of recovery are modest. But business schools are looking ahead and seeing a light at the end of what is now a pretty short tunnel.”

There is still a bit of a stigma that some aspiring bankers may have to face. One Duke student told the paper that he and his classmates joke about calling themselves “bank tellers” instead of “investment bankers” to avoid any potential dirty looks. Most MBAs however, don’t believe that the industry has lost any of its prestige or importance and have not been deterred from entering their chosen field.

Upcoming Portfolio authors Max Anderson and Peter Escher felt the same way upon their graduation from Harvard Business School last Spring. Both had chosen a career in business but were uncomfortable with the prevailing notions of what makes a successful banker. They decided to take matters into their own hands to try to reform business for the better and, with the help of their peers, created The MBA Oath, an ethical code of conduct for business grads and leaders that they pledge to follow throughout their careers. Hopefully, all of these new hires will take it to heart when they land their dream jobs.

The New York Times: Job Market Stabilizes for Business Students

The MBA Oath by Max Anderson and Peter Escher

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Innovation in India

Interesting article in today’s New York Times about how, despite the popularity of outsourced jobs there, many in India worry that the country is still behind other large nations in innovation. As the Times says:

Even as the rest of the world has come to admire, envy and fear India’s outsourcing business and its technological prowess, many Indians are disappointed that the country has not quickly moved up to more ambitious and lucrative work from answering phones or writing software. Why, they worry, hasn’t India produced a Google or an Apple?

India’s advantage in the global marketplace seems to be its large population, and therefore its labor potential. But its risk-averse financial system along with a culture that looks down on unconventional career decisions, has kept it from catching up to the rest of the world in new ideas.

The New York Times: In India, Anxiety over the Slow Pace of Innovation

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Is This the Time to Chase a Career Dream?

dreamingPortfolio author Pam Slim wrote this great article for yesterday’s New York Times about chasing your career dreams.

Slim says times of economic turmoil offer a great opportunity to reinvent your career.  Because if you’re going to live with uncertainty (and still work like crazy to secure your livlihood) you might as well pursue something you care about deeply.

Pam’s Twitter followers (@pamslim) offered valuable feedback when she was writing this – everyone from surgeons who long to be musicians to entrepreneurs who would rather drive a UPS truck.

Pam’s book Escape From Cubicle Nation: From Corporate Prisoner to Thriving Entrepreneur is being published later this month, and is a must-read for anyone dreaming to get out of their day job.  Publishers Weekly called it “the perfect balance between emotional encouragement and practical advice” and “a standout in the start-your-own business genre.”

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