Education Funding

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  • The WSJ's Editorial Board Celebrates Arne Duncan's Resignation By Promoting Anti-Public Education Myths

    ››› ››› PAM VOGEL

    An October 5 editorial by the Wall Street Journal used anti-union rhetoric and pro-privatization arguments to celebrate Secretary of Education Arne Duncan's resignation and replacement by Acting Deputy Education Secretary John King. The editorial perpetuated several well-worn education policy myths, and mischaracterized the economic outcomes of for-profit colleges and the effects of voucher programs for low-income students of color. 

  • Myths And Facts About The College Debt Crisis

    ››› ››› PAM VOGEL

    As the nation's student loan debt burden continues to grow and voters look to 2016 presidential candidates for solutions, right-wing media continue to perpetuate debunked myths about college costs, financial aid, and student loans. Here are the facts that conservative media outlets ignore.

  • Fox Cites One-Sided Study To Claim Michelle Obama's Healthy Lunch Program Costs School District Jobs

    Blog ››› ››› PAM VOGEL

    Fox News tried to blame First Lady Michelle Obama's healthy school lunch program for reports of financial woes and layoffs at school districts, but it failed to disclose that the study it cited comes from a group supported in part by food industry companies that sell their product to schools, including PepsiCo, General Mills, and Domino's.

    On the August 26 edition of Fox News' Special Report, host Bret Baier highlighted the findings of a new study from the School Nutrition Association (SNA) that claims implementation of the National School Lunch Program's healthier nutritional standards has led to school district worker layoffs and financial struggles. The standards were established after Congress passed the Healthy Hunger-free Kids Act of 2010, the centerpiece of First Lady Michelle Obama's "Let's Move" initiative.

    Baier told viewers, "School is back, or soon will be, and healthy school lunches are resulting in unhealthy school finances." He went on to cite the SNA study's claim that "56 percent of districts have lost lunch participants because of the new healthy standards championed by the first lady" and that "seven of 10 [school districts that responded] say the standards have hurt the financial situation of the local meals programs, with almost half choosing to reduce staffing."

    But Baier failed to disclose that the School Nutrition Association, which describes itself as "a national, nonprofit professional organization representing more than 55,000 members who provide high-quality, low-cost meals to students across the country," has deep ties to the industry that sells food products to school districts. As Media Matters has previously written, the SNA lists Schwan's Food Service, a company that specializes in providing pizza to schools and restaurants, as a "major" donor. The association has also accepted funding from PepsiCo, General Mills, ConAgra, and Domino's Pizza. Schwan and PepsiCo also hold seats on the SNA's board of directors.

    Schwan, ConAgra, and General Mills were also among major members of the food industry behind successful lobbying efforts to preserve pizza's classification as a vegetable for the purpose of school nutritional standards in 2011.


    Fox Ignores Food Industry Ties In Attack Against Healthy School Lunches

    Fox News Host Suggests Healthy School Nutrition Initiatives Cause Mental Problems

    Ben Stein On Fox: Michelle Obama's Healthy School Lunch Initiative Is Orwellian

  • WSJ Editorial Blames Progressives For Student Debt, Claims Government Loans Send "Deadbeats" To College

    Blog ››› ››› PAM VOGEL

    Wall Street Journal editorial on student debt takes aim at Democratic presidential candidate Hillary Clinton's New College Compact college affordability plan, arguing that Democrats have "encouraged student debt" in order to win over young voters with debt relief proposals. In addition to favoring fewer opportunities for low-income students, the board's argument ignores the flawed and sometimes corrupt private lending system that led the government to reform the student loan process, and the recession-driven policies supported by both parties that have sent higher-ed costs skyrocketing.

    The August 21 WSJ editorial characterized Clinton's recently-announced student debt relief proposal as part of a larger "arc of progressive politics" that first causes problems, and then presents voters with solutions. The short editorial - which is also short on facts - is worth quoting in its entirety (emphasis added):

    The arc of progressive politics these days seems to be hoping to benefit from proposing policies to solve the problems their previous policies have created--and hoping nobody notices the cause and effect.

    Hillary Clinton and the other Democratic presidential candidates have been proposing new ways for college students to reduce or write-off their student loans. The goal is to win over millennial voters with more taxpayer largesse, while slowly turning higher education into one more universal federal entitlement. Mrs. Clinton's proposal would cost a hefty $350 billion over 10 years, by her own no doubt conservative estimate.

    What Democrats don't say is that such taxpayer generosity wouldn't be necessary if they hadn't done so much to encourage students to load up on taxpayer-guaranteed debt. The Education Department reported this week that some 6.9 million Americans with student loans hadn't made a single payment in at least 360 days. That's up 6%, or 400,000 borrowers, in a year.

    The Obama Administration took over the student loan market in 2010, easing terms and expanding benefits. Now that the bills are coming due in (sic) more deadbeats, Democrats hope to benefit again by handing the tab to taxpayers. They nail you coming and going. [Wall Street Journal8/21/15]

    The editorial lays the blame for the national student debt crisis at the feet of the Obama Administration, which it says "took over the student loan market" in 2010. That's a reference to The Health Care and Education Reconciliation Act of 2010, which eliminated the Federal Family Education Loan (FFEL) program, a lending system that dates back to 1965 and offered government-guaranteed student loans through private and nonprofit lenders. In its place, the government created the present-day Direct Loan program, which cuts out private lenders and issues loans directly to students (private lending continued without the government's backing).

    Among other things, the 2010 education loan overhaul lowered interest rates for certain borrowers, upped maximum award amounts for Pell grants, expanded access to both income-based repayment and the Public Service Loan Forgiveness plan by allowing borrowers to consolidate into loans eligible for these programs, and made income-based repayment significantly more affordable. The Congressional Budget Office projected that the new, simplified loan program would save the government $68 billion over 11 years.

    The WSJ editorial made no mention of the 2010 law's cost savings for the government or students, or the circumstances that laid the groundwork for the reform. Before 2010, the government was paying millions to private lenders to subsidize interest rates on federally-backed loans. In 2004, it was discovered that private lenders were exploiting a legal loophole and overcharging the government for those subsidies. In 2007, several lenders also admitted to engaging in illegal deals with colleges to encourage students to borrow from them.

    Those revelations shook public and policymakers' confidence in the whole system of privately-issued, taxpayer-backed student loans and helped set the stage for the 2010 reforms.

    In August, 2012 -- two years after the Direct Loan program began -- the Consumer Financial Protection Bureau issued a report that showed how private student loans, which often come with variable interest rates and limited repayment options, expose borrowers to greater credit risk and higher costs. Despite that damning finding, the Republican Party's 2012 party platform called for an end to direct lending and a return to the FFEL-style lending system that had allowed private lenders to overcharge taxpayers and exposed student borrowers to higher debt costs.

    Another of The Journal's claims -- that progressive policies have created a cycle of "entitlement" -- is undermined by the fact that bipartisan measures have increased pressure on students to borrow ever-higher amounts of money to pay for college. State-level budget cuts to higher education in the wake of the 2007 recession, for example, have been a proven cause of higher college costs across the board, especially at community colleges. An in-depth analysis of state higher education disinvestment from 2007-2012 by the Center for American Progress found that 29 of 50 states had lowered their direct funding of public institutions. By Media Matters' count,  legislative leadership in those 29 states was almost evenly divided between Democrats and Republicans, proving the fallacy of the Journal's claim that progressive policies are responsible for driving up higher-ed costs.

    Finally, the Journal's claim that expanding access to student loans leads to more "deadbeats" looking to taxpayers to foot their loan bills echoes a common conservative talking point that says expanding access to higher education through accessible student loan programs results in unqualified (read: undeserving) students going off to college.

    That argument ignores the reality that taking on some measure of student debt is inevitable for most Americans, regardless of what kind of school they attend. In 2013, the most recent year for which data is available, nearly 70 percent of graduates of public or private nonprofit schools had loan debt. Tuition costs are rising quickly at every type of higher education institution, according to figures from the National Center for Education Statistics: private colleges, state universities, vocational schools, community colleges, even professional certification programs. And the growing debt burden is shouldered disproportionately by low-income, black and Hispanic borrowers, many of whom lack the adequate financial resources to avoid borrowing.

    The bottom line is that any argument against the loan simplification measures and expanded student aid established in 2010 is an argument to limit college opportunities, which will inevitably hit low-income, minority students hardest. The Wall Street Journal's elitist dismissal of the serious problem of student debt, and its partisan argument against worthwhile policy solutions, reinforces a stratified system of higher education that limits opportunities for deserving Americans.

  • WSJ Defends Shuttered For-Profit College Despite Evidence Of Fraud

    Blog ››› ››› HILARY TONE

    Everest CollegeThe Wall Street Journal editorial board falsely blamed the Obama administration for the closing of for-profit college company Corinthian Colleges, ignoring mountains of evidence that the company engaged in exploitative practices against its students.

    Corinthian Colleges Inc. announced on April 26 that it would immediately shut down its 28 remaining campuses, following reports that it has been "teetering on the brink of collapse for months." About 16,000 students in five states are affected by the move, which called "the final act of a slow-motion disintegration."

    On April 27, The Wall Street Journal editorial board defended Corinthian, claiming that the "feds and [California Attorney General] Kamala Harris put 16,000 students on the street." The editorial alleged that the Department of Education (ED) "began to drive Corinthian out of business by choking off federal student aid," that Corinthian was held at "government gunpoint," and that an ED "penalty scared away prospective buyers." The editorial concluded:

    Though Corinthian has established an escrow account for refunds, the reserve likely won't be sufficiently capitalized to cover 16,000 students. Maybe there would be more money for students if Corinthian didn't have to spend so much defending itself from the government. But for the Obama Administration, protecting students has always been second to its mission of doing whatever it takes to put for-profit schools out of business.

    The WSJ's attempt to blame the ED for Corinthian's collapse is misguided given that the for-profit company has been under investigation for years for "exploitative practices," including "predatory lending, deception in performance data and job placement rates, and bogus career services." Last summer, the ED cut Corinthian off from receiving federal aid, and penalized them with a $30 million fine earlier this month for 947 confirmed cases of "misrepresentation of job placement rates." California Attorney General Kamala Harris filed a lawsuit against Corinthian in 2013, alleging that the company "targeted some of our state's most particularly vulnerable people -- including low income, single mothers and veterans returning from combat."

    A group of former Corinthian students also announced earlier this year that they would "not repay any federal student loans they took out to attend Corinthian's schools," calling it a "debt strike." Officials from the ED, Consumer Financial Protection Bureau, and Department of the Treasury met with those former students last month and listened to claims that "they were either lured into taking out loans with bogus promises of future job prospects or were simply signed up for loans by their school's staff without their consent." Think Progress further noted in its "inside story" on Corinthian:

    The company's bait-and-switch approach to recruiting students -- or making sales to customers -- lured many ambitious people who thought they were investing in future economic security, workplace dignity, or job satisfaction. But ultimately, many of them were just buying a meaningless degree at a very high price.

    This isn't the first time the WSJ has used faulty arguments to defend for-profit colleges, or even its first foray into deceptive reporting on higher education and student debt. This editorial echoes a larger trend within conservative media to ignore the realities of America's student debt crisis.

    Image at top via Flickr user Jeramey Jannene using a Creative Commons license.

  • WSJ Uses Bad Numbers To Wipe Away Downside Of For-Profit Colleges


    The Wall Street Journal editorial board used a misleading comparison of graduation rates to attack community colleges as "inferior" to for-profit schools. In reality, for-profit schools have significantly higher costs and employ questionable business practices that translate to lower employment and earnings for their graduates.

  • North Carolina Newspapers Mostly Silent As ALEC And Koch Brothers Rewrite History

    Blog ››› ››› DANIEL ANGSTER

    North Carolina newspapers have largely missed the connection between a Koch-funded education non-profit organization contracted to help shape new statewide history curriculum materials, and the American Legislative Exchange Council (ALEC), the conservative model legislation mill that wrote the bill mandating the new course work.

    In 2011, the North Carolina legislature passed a bill known as the "Founding Principles Act," which would require high school students to pass a course on "Founding Philosophy and the Founding Principles of government for a free people." The bill was generated as a piece of model legislation by ALEC, a conservative group that brings corporations and politicians together to vote on and construct bills to be used in multiple states. According to the Huffington Post, North Carolina's Department of Public Instruction, which has been tasked with drawing up the curriculum required by the Founding Principles Act, proposed on December 3 to "'highly recommend' social studies material from the Bill of Rights Institute," an organization which "receives funding from the billionaire Koch brothers."

    Of the four largest papers in North Carolina (by circulation), The Charlotte Observer, the News & Record, The News and Observer, and the Winston-Salem Journal, only the Raleigh-based News and Observer produced an original report on the connection between the Koch brothers and the new history curriculum. Its story was reprinted by The Charlotte Observer  and the Winston Salem-Journalthe latter of which added quotes from local teachers. The News & Record only ran a short Associated Press story that referenced the original News & Observer article.

    As the News and Observer reported, the Bill of Rights Institute (BRI) was contracted to help create course material. What all of the state papers missed, however, was the BRI's own connection with ALEC. According the Center for Media and Democracy, BRI was an ALEC member and part of ALEC's Education Task Force. Documents obtained by The Guardian show that BRI's ALEC membership lapsed in April 2013, though the institute was listed as providing research materials for the new curriculum in February of the same year.

  • Fox's Sunny Sesame Street Celebration Tries To Sweep The Clouds Of Past Attacks Away

    Blog ››› ››› BRIAN POWELL

    Fox & Friends celebrated Sesame Street's 45th birthday by hosting Muppet characters Grover and Abby Cadabby for a light-hearted appearance congratulating them on their longevity. But if the network had gotten its way in 2012, Grover wouldn't have made it past the age of 44 with his show's funding intact.

    The Sesame Street program is celebrating the kickoff of its 45th season on PBS, and two iconic Sesame Street characters -- Grover and Abby Cadabby -- visited the set of Fox & Friends on September 17 to answer trivia questions and play and sing with the hosts. Co-host Steve Doocy congratulated the Muppets on their show's durability, and Fox's Heather Childers noted how she "loved Sesame Street as a kid." An on-screen graphic promoted upcoming episodes with the words "More Sunny Days Ahead."

    But not long ago, Fox News went all-in attacking Sesame Street and PBS. After then-presidential candidate Mitt Romney called for an end to public funding for Sesame Street and other public broadcasting in 2012, Fox began lobbing personal attacks at the program's most iconic figure -- Big Bird -- in an effort to demonize the show's reception of federal money.