The Tribune, Chandigarh, India

	Business of education It has become a big industry Sunit Dhawan ON a nostalgic visit to a Delhi school at which he had studied, a veteran politician recorded his feelings on the visitors’ book thus: “Whatever I am today, it is due to this school.” On seeing the remarks, his political opponent, who was also present there, promptly wrote down a counter comment: “Why blame the school?” Apart from appreciating the wit of the commenter, one might also be driven to find the answer to a deeper question: What effect does our school—or, for that matter, any educational institution where we have studied—really have on ourselves? The question assumes a greater relevance in today’s era, when education seems to be everybody’s focus and the parents are desperate to ensure that their wards get good education. However, in the pursuit to provide “quality education” to their children, most parents go by the economics’ famous thumb rule: “Costlier is better”. They are ready to pay through their nose to send their children to a good educational institution. Now that the school of children has become a status symbol for their parents even in small towns, the owners of schools, coaching centres and other educational institutions are minting money. In fact, education has become a big industry which thrives on the hard-earned money of the parents. Given the mad rat race for a handful of professional courses among the students as well as their parents, this industry holds a promising future. But the primary question remains unanswered: What are the educational institutions providing to our children? Are they inculcating good moral values, shaping an upright character or teaching the virtues of policies like honesty, integrity, truthfulness, tolerance and patience? Sadly, the answer—in most cases—is a big ‘NO’. Ideally, good education should help us in becoming better human beings. This philosophy was well understood and implemented by our ancestors. Our country had a glorious tradition of gurukuls, where wards of people from all sections of society used to study together. The students were taught the tenets of simple living and high thinking. Irrespective of their parents’ position in society, the students had to lead a simple and self-disciplined life at the gurukuls. They were subjected to lots of hardships and multi-dimensional tests to enable them to face the tough challenges of life. The teachers never “sold” their knowledge, but passed it on to the desirous and deserving members of the next generation. The students also held their teachers in high esteem and were ready to sacrifice even their life on their command. In sharp contrast, the education sector has been completely commercialised today. Most school owners fleece the parents of their students and exploit the teachers serving at their institutions. As if to justify the exorbitant fees and other charges extracted from the parents, these schools provide air-conditioned classrooms, hostels and buses; hobby and activity classes and other such facilities to the students. However, such abundance of facilities at school as well as home seldom helps the students in knowing or achieving the real goal of their life. What these institutions produce is a bunch of half-baked, arrogant or confused youths whose vision is restricted to the pay package they aim to get in the job market. Even after completing the studies at school, the students find themselves in the midst of an even more confusing world of coaching centres, professional educational institutes and foreign universities promising them a bright future. The students undergoing coaching may or may not get selected in the course/institute of their choice, but they invariably end up filling up the coffers of their coaching institutes/teachers. The most intriguing aspect in the entire scenario is that more often than not, the students are made to choose a career from a closed set of options, mostly comprising professional study programmes. Seldom is an attempt made to understand the real aptitude of a child before pushing him/her into a given discipline; as the parents as well as children are driven by social and peer pressure. In the entire process, the educational/coaching institutes remain the biggest gainers from the mad rush for the few privileged seats. Instead of considering their responsibility over by getting their child admitted to a “prestigious” school, it is high time that the “aware” parents should wake up and reconsider their approach before it is too late.
	Financial crisis hits US colleges HIGHER education has been a growth industry in the US, evidenced by swelling enrollments, expanding campuses and growing endowments. But the global economic crisis has caught colleges and universities in a vice. With their endowments shrinking along with stock markets, some schools may raise tuition more than usual, even as students complain it is already too expensive and struggle to get loans. “This will definitely test many schools,” said Ronald Watts, the finance chief of Oberlin College, an elite private school in Ohio whose endowment of nearly $750 million has shrunk by about 15 per cent in the past four months. To be sure, schools have proven resilient in past recessions, helped by rising student enrollment as people seek a leg-up in a bleak job market. “It’s not going to be as drastic as what corporations are doing,” Watts said. “You don’t just eliminate people and lay off faculty and expect not to destroy your academic program.” Nevertheless, a few schools have already announced fresh tuition hikes, and school officials said they were keeping a close eye on their finances. And, with schools under financial pressure, local economies all over the country are likely to suffer. Tuition increases have outpaced inflation for years. Tuition and fees at public universities have risen 175 per cent since 1992, while the consumer price index rose 48 per cent. At the University of Wisconsin in Madison, the school’s $1.8 billion endowment has shrunk by 18 per cent since the start of the year, Sandy Wilcox of the University of Wisconsin Foundation said. Dipping into the endowment to make a promised contribution to the school’s budget only shrinks it further. Wisconsin, like many schools with substantial endowments—400 have endowments over $100 million and 76 above $1 billion—use a three-year averaging system to smooth out how much they pay out from earnings. The wealthiest schools have come to rely on endowments and there has been growing pressure from the Congress to boost payouts, threatening to take away their nonprofit, tax-free status if they don’t comply. For most other schools, small endowments serve as a “rainy day fund” that can disappear quickly in tough times,” said John Griswold of Commonfund, which manages money for nonprofits. “Schools we’re most concerned about are smaller, less well-endowed private colleges,” said Roger Goodman, vice-president at Moody’s Investors Service, which assigns credit ratings to 500 schools. He said endowment balances have likely plummeted by 30 per cent or more. “You still need a college degree to be a full participant in the work force,” he said. “What we may see is a shifting (of applicants) from the higher-priced, small, private colleges, to a lower-priced four-year university, and from the four-year universities to community colleges for a couple of years.” A survey of 2,500 prospective students by MeritAid.com found 57 percent were now considering less-expensive colleges due to the economic downturn. Many prospective students encounter sticker shock when confronted by the $50,000 price tag at schools like Oberlin, Boston University and Bennington College in Vermont. But financial aid and federal loans remain available, and families whose assets have declined qualify for more aid. Boosting access to college is one plank of Democratic presidential hopeful Barack Obama’s platform. This may add pressure on publicly-funded universities to boost enrollment, which has already climbed 10 per cent since 2002. Sticker prices at private colleges are usually much higher than pubic schools, but students rarely pay full price. “Sometimes a small, liberal arts college will actually be better for a student and more affordable than in-state (public schools),” said Ken Himmelman, Bennington’s Dean of Admissions. Public universities, which educate roughly 75 per cent of the 17.5 million US students, are anticipating cuts in state appropriations, which cover a substantial chunk of their costs. State tax receipts have declined due to the economic slowdown and the bursting of the housing bubble. “They’ll look to the university to cut. They don’t want to cut prisons, or roads,” Wisconsin’s Wilcox said. Massachusetts’ public universities have cut budgets by 5 per cent as their part in covering a statewide shortfall. Some public and private schools have declared hiring freezes and made efforts to reduce expenses because of shrunken endowments, and actual or expected declines in gifts and government support. The state of Arizona cut its contribution to the state university system by 4 per cent this year and 5 per cent next year—with another mid-year cut possible, its more than 118,000 university students may have to absorb a tuition hike next year of 10 per cent or more. Hawaii lowered its contribution 2 per cent, though enrollment rose 6 per cent. Pennsylvania’s public universities will raise tuition 4 per cent next year ahead of state cuts. California sliced 1 per cent off its $3 billion contribution to universities but more cuts are expected as tax revenues lag projections. This spring, New York reduced its contribution and warned another 30 per cent cut may be in the offing. The bursting of the housing bubble has dried up home equity loans many families have used to pay tuition. And the stock market drop has shrunk some families’ savings for education. Often, much of the media’s focus is on wealthy private schools with multibillion-dollar endowments like Harvard and Yale, which have promised to cover costs for many of those fortunate enough to gain admission. But at less well-heeled private schools, which make up most of the US’ unrivaled roster of 4,300 nonprofit institutions of higher learning, significant tuition increases may be unavoidable. “If history repeats itself, you’re going to have falling state support on a per-student basis, rising enrollments, and probably rises in tuition,” said Paul Lingenfelter, president of State Higher Education Executive Officers. Some schools may try to wring more out of their campuses. Professors may have to teach more courses, schools may rent out underutilised campus buildings, or even sell dormitories to hoteliers and lease them back, suggested Richard Vedder, who heads the Center for College Affordability and Productivity. “Schools normally rely on tuition increases” to offset falls in government and donor support, Vedder said. “But as economic conditions worsen, students are going to be resistant, plus there is political pressure not to raise tuition. In dollar terms, budgets may be equal to last year, and some may be forced into some sort of austerity mode.” — Reuters
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	PU News Accidental insurance cover for students Smriti Sharma SOON, the students of Panjab University, Chandigarh, would come under the accidental insurance cover of Rs 2 lakh, as the university officials have decided to implement the long-pending proposal. A committee had been formed earlier to look into the proposal and its viability. After many meetings, a final meeting was held on October 7 to finalise the details. Each student will approximately contribute Rs 100-125 per year. Talks are already on with New India Insurance for the same. Professor Naval Kishore, Dean Students Welfare, said, “The committee will soon table the recommendations after finalising the details.” Authorities further maintained that newly elected students council would also be involved in taking the decision to avoid any later issues. A final decision would be taken in this regard very soon. According to sources, various student bodies had come up with the demand and were pressing it since long that like other universities that provide medical insurance to the students, Panjab University should also implement the same. “We welcome the move as it was our long-pending demand. An insurance cover to students is really very important. In other universities, it is a rule and it’s appreciable that the university has decided to provide accidental insurance cover to its students,” said a student leader.