Financialization & Austerity in Higher Education

Michael Hudson (Research Professor, UKCM) discusses the financialization of education and its consequences on the RealNews Network:

“People had thought that getting a higher education was going to be the way into the middle class. But now it’s become a larger burden on them than the mortgage debt, and especially now that the lower fifth of Americans can’t get mortgage debts. Student loans can absorb 25 or 30 percent of their income, as much as housing used to do. So the problem is that education has been financialized. Just like roads are being turned into toll roads and sold off to Wall Street firms, you’ve had the school system basically become an appendage of the commercial banking system.”  Transcript at the RealNews.

Also, see: Hidden Victim of Austerity: State Universities That Educate Our Children (Alternet)

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2 responses to “Financialization & Austerity in Higher Education

  1. Professor Hala, after watching this video I am extremely disturbed to learn the amount of debt most college students will graduate with. I have many friends who go to top universities within the state such as Saint Johns, NYU, Poly-Tech, and SVA, who often make fun of me for attending a CUNY university. I don’t think they realize that while they are paying $30,000 and up a semester, I am only paying less than $3,000. One semester of their tuition would pay for four years of my college plus even some of my graduate school tuition. It’s truly disturbing to see how much debt these students are in and really does question if higher education at the university level is the key to changing social classes, for the better, or maybe now with all the accrued debt, for the worse?

  2. Professor Hala, unfortunately this video interprets the sad reality most college students face. What makes this worse is the fact that most of the graduates won’t find their dream job right away, and if they do, they will be stuck paying back threir student loans. I believe that it’s getting really hard to become somewhat successful in this time.

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