Jerry Falwell Jr. to lead higher education task force

"Last night I attended a tech networking event. I met a couple of young adults working on a startup having to do with computer chips optimized for artificial intelligence. They have some startup funding. One of them was born in Iran and has been here for 4 years as a grad student or postdoc. His wife had almost gotten a visa to join him–it was in process for 3 years. Poor guy. What can you say? “I’m sorry our country is so stupid.” "

The reality is that a lot of these start-ups can be done anywhere, geographically. Events of late might result in some of them deciding to do it outside of the borders of the USA for reasons like this. Places like Berlin and others attract a lot of international tech talent.

^^that would be an everyday event, as of late. (Post 45)

Not all for profit colleges are evil. I know of one that’s been around since the 1930s. It started as a women’s business college teaching secretarial skill. It still does that, accounting, cooking some health related stuff. It’s not what I’d call a traditional college education, but it does give students job skills that they may not have straight out of high school.

So many students who can’t afford the consequences have been conned by for-profit schools. D did a paper on this for one of her grad school classes and shared some of the research with me. One of the for-profit systems in our state was sued by our last attorney general and a number of campuses were closed because of fraud. They enrolled students in programs knowing they would never be employable upon completion. For example, convicted felons were allowed to major in criminal justice or some of the health care fields. Those schools require students to buy bundled instructional materials directly from them and use that as another revenue stream at the students’ expense. As well, they lure many veterans with GI benefits who then later find out they have no marketable skills and their educational benefits are gone or close to it.

Many are accredited, but not by one of the regional accrediting bodies and that means their credits don’t transfer to schools requiring regional accreditation for articulated credit. Loosening the regulations on for-profit schools is a direct hit to lower income students & their families as so many of them don’t understand the terms of the loans, the implications of non-transferable credit & dead end degree paths, etc.

It’s not just a matter of where the work can be done. Why are so many startups in SV? Besides the talent and being a place where people want to live, it’s where it’s easy to network with angel investors and VCs.

Plenty of action elsewhere. Silicon Valley is expensive. Angel investors and VC will give money to good ideas no matter where they are. And there are now reasons to be elsewhere if things.

We can differ in opinion on this but I bet at least some jobs will leave at this rate.

Also, much of the loan crisis is on account of for-profits–because they enroll unqualified students and usually have no other sources of aid. The “crisis” would look a lot less dire if the for-profit statistics were taken out–their default rates dwarf those of non-profit schools.

A historical accident where a California law dating from the 1870s prohibited employee non-compete agreements was probably a big factor in ensuring people the freedom to start their own businesses or switch jobs to someone other than their current employer.

http://origin-www.bloombergview.com/articles/2016-04-11/the-tyranny-of-the-noncompete-clause

@garland, you are exactly right. That is why the last administration implemented the use of gainful employment data so borrowers could enter the system forewarned about potential employment or lack thereof. It has been a pain to gather this data at my cc, but it is in the best interest of the students.

MODERATOR’S NOTE:
As easy as it is, let’s not drift into a political discussion. Factual statements are fine; speculation of what happens next, or what a gov’t official may/may not say is treading dangerously. Several posts deleted.

I wish that a new SV would start in a Canadian city. More affordable cost of living, etc.

Smaller versions of SV are popping up all throughout the country – I live in Denver, and the city’s trendy downtown areas house many a start-up. You hear similar stories about Austin TX; Raleigh, NC; Kansas City, Nashvilee, etc. Don’t forget, it took "the peninsula"a good half a century to become THE Silicon Valley. These things take time… and they’re partly related to – access to good universities that support entrepreneurship and creativity. (To get back to the original subject.) It would be interesting to hear what Mr. Falwell has to say about that!

Do they really? The Department of Education was found to have falsified the loan repayment data, overstating the repayment rates for not-for-profit institutions by 20 percent.

http://www.forbes.com/sites/tomlindsay/2017/01/31/__trashed/#15c74e323ccb

I saw a news report on 'the Silicon prairie '.
I don’t think Jerry Falwell 's concerns, as expressed in the article, focus on Silicon Valley and tech. He wants to 'unshackle ’ universities from federal regulations - those most suffering are universities that refuse to comply with Title IX and, recently, for-profits. So, logically, that’s who his commission will help.

Well, if Falwell is successful in deregulating for-profits and other questionable institutions, College Confidential will have an even more important role in warning people about the pitfalls.

The reason silicon valley became a haven for startups in the first place, going back to the dark ages of the 1950’s, was because of the research universities in the area, especially Stanford and Berkeley. Shockley semiconductor, HP, Fairchield semiconductor, any number of firms came out of that, later on this led to the revolution of personal computers (a ton of the computer revolution came out of Xerox’s Palo Alto research center, which given its location near Stanford says a lot…). Plus the Bay Area is an attractive place to live for a number of reasons, which helps attract talented people.

And no, Silicon valley is not unique, but any place that hopes to recreate it has to have certain things to make it work. Research universities are one of the factors, the other is being attractive to live in. Denver is a relatively big city that has cultural offerings and especially things to attract young people, Austin Texas is a college town with a thriving music and arts scene that is very different than much of the surrounding state, Nashville has the same kind of vibe because it again has things to offer the young, Atlanta has big corporations but there are also startups there as well, again because of what the city is in attracting people. Other places have failed, Provo Utah tried back in the 1980’s to become another Silicon valley and failed, they had both telecom and networking startups there that ultimately failed to create a new silicon valley, it was attractive to people who liked to ski, but it lacked the research university and also the diversity to attract young people. Other towns in more rural areas have tried this, arguing about the quality of life, lower costs, but they fail because startups are a young person’s game, and young people are not attracted to places selling themselves as Normal Rockwell land, not to mention again such places don’t have the research base or the education in the area to support such things.

@mathmom:
The for profit schools you are talking about, like ITT tech, Katherine Gibbs, and the like were trade schools, they offered associate degrees or certificates, and were decent at what they did because they sold themselves as what they were (much like today places like Lincoln tech in my area, or DeVry, are honest with what they offer). Problem is many of these trade schools started calling themselves “colleges” or “universities” when the level of training was not at that level.ITT tech has been cited for that by the government, overselling what they are doing, because employers basically don’t see this as college level education

To be honest, I am a lot less concerned about Falwell then I am about federal funding in research, you could potentially see things like research grants pulled from climate science or alternate energy research, or given to research something like ‘Creation science’, or simply gut basic research. Basic research is still primarily the domain of government grants, and I am afraid that the mentality will be 'if it is worth researching, business will do it", which is quite honestly historically bogus. Falwell could potentially try and steer education aid from mainstream universities to places like Bob Jones University, they could end up sending federal aid money and student loans to make for profit schools make a lot of money, but his reach would be pretty limited, on the other hand federal grants for research scare me more than a bit, given the current wind in politics.

I think this is important, but it’s not the major reason, as otherwise Boston’s 50+ colleges, including MIT and Harvard, would create a much more vibrant tech environment than exists now.

I feel a major reason is that non-competes are enforceable in Massachusetts but not in California. This makes a big difference in that workers in California can freely take the knowledge in their head to start or join a related business, whereas workers in MA ca and have been sued for doing the same thing. This significantly depresses risk taking, a key ingredient required for a vibrant startup culture. Having worked in tech startups in both CA and MA, I found MA workers much more risk-averse than their CA counterparts.

I recall (barely) a story from the 1990s where a Long Island man in his 70s who did not speak English was, much to his surprise, enrolled in seven different for-profit colleges. Each college was receiving federal money for his education.

I read that around 80% of University of Phoenix payments come from Pell Grants and federal student loans. Cut off the funnel and their whole business model fails.

They to do a better job helping students understand their future earning power vs how much their monthly student loan payment. for example
English starting salary $42000 and you take $31,000 in student loans your monthly payment will be $356.00 for 10 years…

Of course there will probably be a lot of people will still think “oh well I’m not average I’ll make more it will be no big deal.”

“I think this is important, but it’s not the major reason, as otherwise Boston’s 50+ colleges, including MIT and Harvard, would create a much more vibrant tech environment than exists now.”

I don’t know what you are reading, but the Boston area still has a lot of tech companies, small startups and the like, and while it isn’t on the scale it once was (when you had the silicon alley/route 128 corridor that had companies like DEC and Data General), the nature of it has changed, as silicon valley has, you don’t have the hardware centered world that made those companies (now all pretty much defunct), but there is a lot of tech in the Boston area still, in various forms, and MIT especially is driving more than a bit of it.