The college bribery scandal vs. Lambda School

Many of you have seen the news, but, while the bribery scandal is sucking up all the attention in the media, Lambda School is offering a $2,000/month living stipend to some students and Western Governors University is continuing to quietly grow. The Lambda School story is a useful juxtaposition with the college-bribery scandal. Tyler Cowen has a good piece on the bribery scandal (although to me the scandal looks pretty much like business-as-usual among colleges, which are wrapped up in mimetic rivalry, rather than a scandal as such, unless the definition of a scandal is “when someone accidentally tells the truth”):

Many wealthy Americans perceive higher education to be an ethics-free, law-free zone where the only restraint on your behavior is whatever you can get away with.

This may be an overly cynical take, but to what extent do universities act like ethics-free, law-free zones? They accept students (and their student loan payments) who are unlikely to matriculate; they have no skin in the game regarding student loans; insiders understand the “paying for the party” phenomenon, while outsiders don’t; too frequently, universities don’t seem to defend free speech or inquiry. In short, many universities are exploiting information asymmetries between them and their students and those students’s parents—especially the weakest and worst-informed students. Discrimination against Asians in admissions is common at some schools and is another open secret, albeit less secret than it once was. When you realize what colleges are doing to students and their families, why is it a surprise when students and their families reciprocate?

To be sure, this is not true of all universities, not all the time, not all parts of all universities, so maybe I am just too close to the sausage factory. But I see a whole lot of bad behavior, even when most of the individual actors are well-meaning. Colleges have evolved in a curious set of directions, and no one attempting to design a system from scratch would choose what we have now. That is not a reason to imagine some kind of perfect world, but it is worth asking how we might evolve out of the current system, despite the many barriers to doing so. We’re also not seeing employers search for alternate credentialing sources, at least from what I can ascertain.

See also “I Was a College Admissions Officer. This Is What I Saw.” In a social media age, why are we not seeing more of these pieces? (EDIT: Maybe we are? This is another one, scalding and also congruent with my experiences.) Overall, I think colleges are really, really good at marketing, and arguably marketing is their core competency. A really good marketer, however, can convince you that marketing is not their core competency.

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