Quick Takes: U. of Chicago's Darfur Investments Criticized, 'Donations' for Fla. Chancellor Questioned, Nudity Cover-Up at Malone, Donor's Name Will Disappear, Aid Officers' Group Urges Help for Lenders, Study Finds Gender Bias in UK
A panel of the City Council of Chicago voted Thursday to denounce the University of Chicago for refusing to bar investments in companies that do business in Sudan, the Chicago Tribune reported. The university's inaction, council members said, fails to recognize the evil of the genocide taking place in Darfur. Chicago officials cited traditions of academic freedom and noted that the university did not divest South Africa-related holdings during the divestment movement of the 1980s.
Legislators in Florida are questioning the practice of having public university foundations contribute funds to increase the salary and benefits of Mark Rosenberg, the university system's chancellor, The Palm Beach Post reported. System officials have said that the donations are voluntary and reflect a commitment to the system, but some legislators say universities feel pressure to contribute. One lawmaker described the situation to the newspaper as "soft extortion."
Malone College, in Ohio, wants its students clothed -- in the student newspaper and in dormitory hallways (among other places). The Canton Repository reported that the college removed hundreds of copies of The Aviso, the student newspaper, from campus because of a photograph of a group of naked male students in a dorm hallway. The photo -- apparently staged and with faces and certain other areas digitally blurred -- illustrated an article about a dorm director telling students it was inappropriate to go from one room to another in the dorm while naked, as some students had done. Malone this week made that an official policy, saying that students in dorm hallways must wear at least shorts, even while walking to the shower in a single-sex dormitory.
Dickie and Diane Scruggs, who have donated $25 million to the University of Mississippi, have asked that their names be removed from the music building, following his pleading guilty to charges of trying to bribe a judge, The Jackson Clarion-Ledger reported. The couple did not ask for the donations to be returned.
The new head of the National Association of Student Financial Aid Administrators urged Education Secretary Margaret Spellings in a letter Wednesday to consider using federal funds to ensure that lenders continue to have enough money to make student loans and provide benefits to borrowers this fall. In the letter, Philip R. Day Jr., who became NASFAA's president and CEO this winter, endorses calls by lawmakers and others for the department to push to ensure the viability of alternatives to the guaranteed loan program, including expanding access to the competing direct loan program and the government's "lender of last resort" initiative involving guarantee agencies. But because "these options are largely untested," Day also asked Spellings to consider bolstering the lender-based guaranteed loan program by "allowing non-bank student loan providers to use the loans that they have been unable to sell as collateral to borrow funds from the federal government so they can make loans this fall and to pursue other financial strategies in order to provide a backstop for this element of the marketplace." Some lenders and federal lawmakers have urged such actions as well, as a growing number of loan providers announce plans to stop originating student loans.
A new study finds that continued bias contributes to a gender gap in British science, The Guardian reported. In universities, the study found, women represent 54 percent of postdocs, 41 percent of lecturers, 31 percent of senior lecturers and 16 percent of professors.
Comments on
Quick Takes: U. of Chicago's Darfur Investments Criticized, 'Donations' for Fla. Chancellor Questioned, Nudity Cover-Up at Malone, Donor's Name Will Disappear, Aid Officers' Group Urges Help for Lenders, Study Finds Gender Bias in UK
Chicago and Darfur
Posted
by Jonathan Beecher Field
, Assistant Professor
at Clemson University
on March 21, 2008 at 9:45am EDT
As an alumnus, this is a pretty embarrassing way for Chicago to pop up in Inside Higher Ed. I can imagine making (if not personally endorsing) an argument along the lines that vetting university investments to make sure none of them are involved in ethically dubious businesses is not practical. However, the two defenses offered here are poppycock. That a university's investments are shielded from moral scrutiny because they are made by a university conflates the academic institution and the academic. A university might refuse to disclose crime statistics under the same rationale. And the "we didn't divest from South Africa during apartheid" argument conflates precedent and righteousness. It's disappointing to see the public face of the University of Chicago display the kind of sloppy thinking that is inimical to its heritage.
Calrification
Posted
by R.F.
on March 21, 2008 at 9:50am EDT
Scott and Doug;
Nasfaa has not asked for aid for lenders; they have asked for help for students, a small but important distinction for those of us who work in a financial aid office.
What evidence?
Posted
by T-bone
on March 21, 2008 at 9:50am EDT
From the article: "But between a quarter and a third [of the promotion gap] is unexplained, which leads us to conclude that there is strong evidence that women do experience different treatment and disadvantage in terms of career progression."
This seems to be a big jump in logic to me - from "unexplained" to "it is due to gender." What evidence do the authors have to support this jump in logic?
I would be interested in seeing what percentage of male and female post-docs are interested and actively pursue professor positions and promotions. Then, if these numbers are similar, an investigation into hiring and promotion practices and the role of gender in these events would be helpful in understanding the role of gender.
Just because there are "falling levels of female employment as seniority rises" does not mean that it is due to systematic gender discrimination.
In any case, I think it is the men in the U.S. who are most at-risk and in need of the most help - just take a look at the prison population (1,309 inmates per 100,000 for men and only 113 per 100,000 for women, http://usgovinfo.about.com/cs/censusstatistic/a/aaprisonpop.htm) !
Florida Chancellor
Posted
by don mclean
, Principal
on March 21, 2008 at 9:55am EDT
Universities and their supporting foundations are joined at the hip. As foundations grow, the importance of enforcing independence is critical. Universities often react to the growing independence of their foundations as parents do to their teenagers growing up.
For a foundation to truly support the university and be a partner in mission execution, the governance practices of each must have transparency and accountability to build trust among the donors and other stakeholders. Foundation payments to support a university president may be in the category also inhabited by "agency accounts", certain special events support activities, as well as many development related expenses. Most of these activities have logical origins. With a history of these types of fuzzy activities, it becomes hard to finally put a stop to the trend. Uncomfortable as it may be, creating true separation of activities that can be independently audited on both sides is a requirement of good governance. It's the job of the foundation management and board to map the path forward.
NASFAA Letter
Posted
by Public Administration Prof
on March 21, 2008 at 11:55am EDT
Re: Injecting liquidity into the student loan system. One thing the Secretary of Education could do right now is buy soon-to-be-consolidated FFEL loans at a negotiated price from non-profit lenders and service them through the Direct Loan system. This would pump liquidity into the FFEL system and save taxpayer money at the same time.
Many FFEL loans issued prior to July, 2006, have variable rates. Borrowers will be consolidating them to take advantage of the upcoming July reset, in order to lock in lower rates over the life of the loan. These loans also carry the pre-CCRAA, higher Special Allowance Payment (SAP) to lenders, but lenders will lose it once the loans are consolidated. That means lenders holding such loans are going to be in for another hit soon, just as loan demand for 2008-09 starts to peak.
OMB and CBO will score such purchases by the Secretary as savings. The Secretary could negotiate the price of the loans up to revenue-neutrality without having to incur new budget authority. The Secretary has broad powers under Sec. 432 of the Higher Education Act to take actions to assure that the purposes of the FFEL program will be achieved, and such an action would be consistent with previous broad interpretations of this section. A lot of these loans are going to move into the Direct Loan system anyway in a few short months through consolidation, at a greater loss to lenders than they would be able to negotiate now.
Some -- including the followers of Milton Friedman, who advocated the Direct Loan system -- might advise letting the non-profit state agencies fail, especially those that got themselves into trouble by injudiciously putting too much of their debt into auction rate securities, or by flying too high and beyond oversight in the days of anything-goes. If only FFEL were at stake, that is one thing. But many of these entities also offer non-predatory and reasonably priced private loans, and their disappearance from this market could be calamitous for gullible borrowers, as there is no assurance that Congress is going to pass legislation that effectively cleans up the sleazier corners of the private loan industry.
This action by the Secretary would give state and non-profit loan entities a better chance to restructure their capital needs and remain a positive influence in student loans.
Chicago and Darfur
Posted
by bob
on March 21, 2008 at 12:00pm EDT
As another alumnus of Chicago, I am also embarrassed by their bogus use of the Kalven Report to justify decisions. The Kalven Report is used as an excuse to do whatever they have already decided to do; in other instances, such as the City of Chicago's bid for the Olympics, they freely take stands on public issues and ignore the Kalven Report.
NASFAA walking in lockstep with the lenders
Posted
by Alan Collinge
, Founder
at StudentLoanJustice.Org
on March 24, 2008 at 7:20am EDT
Again, NASFAA, who are supposed to be looking out for the interests of the students, are carrying the lender's water.
Forget about the astonishing lack of consumer protections for student loans. Forget about the students whose lives are ruined by high interest, bankruptcy-free debt.
As long as the money train keeps rolling (making its final so at the colleges, of course), that's all that matters. Nice work, NASFAA. Glad to see that you are in the same collusive position with the lenders as always, and are pulling all the same strings as before.
Ridiculous organization, NASFAA. Congress should be ashamed that they even listen to these jokers.