Links for 9/14/10

Greg Mankiw

In the end, the goal of the rent control laws is thwarted (the low rents are enjoyed by well-paid tenured faculty rather than the needy), the income tax laws are thwarted (a sizable part of compensation is untaxed), and all this is done by a nonprofit institution (the university) whose ostensible purpose is to serve the public interest.

The Boston Globe

But there’s another, less honorable, explanation for the run-up in coach’s salaries: Athletic directors compete to see who has the best overall won-loss record, spanning all sports. Thus, they throw big money at the winningest coaches. That smacks not only of misplaced priorities, but financial irresponsibility. University presidents take note: Only managers operating with no sense of limits would make such decisions.

George Leef

There is a lesson here: We ought to have a separation of education and state.

The Wall Street Journal

State universities have become the favorite of companies recruiting new hires because their big student populations and focus on teaching practical skills gives the companies more bang for their recruiting buck. Big state schools Pennsylvania State University, Texas A&M University and University of Illinois at Urbana-Champaign were the top three picks among recruiters surveyed.

Eric Gorski

The number of college students who defaulted on their federal student loans climbed in the fiscal year that ended in September 2008, according to new government data released Monday.

And once again, those who attend for-profit colleges and universities were the most likely to default.

The grim numbers are no surprise, given that the timeframe roughly aligns with the start of the recession. But they come at a politically charged time, as for-profit colleges fight proposed regulations that would cut off federal aid to some programs if too many students default on loans or don't earn enough after graduation to repay them.