Former Thunderbird suitor paid Bill Clinton $17.6M


#1

Before Arizona State University stepped in and bought the financially-struggling but prestigious Thunderbird School of Global Management, there was Laureate Education Inc.

The for-profit, Baltimore-based university system made a bid to acquire Glendale-based Thunderbird in 2013.

A university accreditation group rejected that bid in 2014 and then ASU ended up grabbing the international business school.

Now Laureate is part of the U.S. presidential campaign.

NBC News, New York Daily News and the Washington Post report Laureate paid former president Bill Clinton $17.6 million over five years to be honorary chancellor from 2010 to 2015.

He stepped down 12 days before Hillary Clinton announced her bid for president, according to NBC News.

bizjournals.com/phoenix/news/2016/09/06/former-thunderbird-suitor-paid-bill-clinton-17-6m.html?ana=RSS%26s%3Darticle_search&utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+bizj_phoenix+%28Phoenix+Business+Journal%29


#2

I think it is pretty clear that there is far too much money to be made in exploiting people who want an education. One would hope that a “chancelor” might have some influence over making education more accessible by lowering the costs. Given that Trump (as mentioned in the article) also did his best to also earn big money with his own “university”, it can be surmised that there are plenty of ills of capitalism to be found.

It can be shown that some for-profit companies involved in education are demonstrating the problems of capitalism that Pope Francis is brave enough to address, the problem of exploitation.


#3

But it’s not really a capitalism problem. Low interest student loans have made it possible for anyone to receive a ‘higher education’. It’s the same sort of principle that was responsible for the housing bubble; everyone gets a loan because all the loans were being secured by Fannie May and Freddie Mac, both government institutions.

With higher demand, prices go up. But wait, if the demand is inflated by the government involvement in the loan business, then how is that capitalism. It’s definitely not a free market when the federal government is responsible for the funds that support these schools.


#4

FNMA and FHLMC did not carry the full faith and credit of the U.S. They insured their securities themselves, unlike FHA and VA (and others) that actually are government guaranteed.

SLMA (Sallie Mae) which guaranteed student loans, was similar to FNMA and FHLMC. But this administration took over the whole program, so all student loans now do not come from private money like the SLMA loans did, they’re part of the federal budget now. So the government outlay is a lot greater.

Personally, if I could end student loans altogether, I would. It would be a severe hardship on the educational institutions who have gotten used to the enormous cash flow from the government. But in the long run, it would almost certainly bring the cost of education down to more affordable levels.

Back when I was college age, tuition at the local State U (Missouri State) was zero. Now it’s about $7,000.00/year. Still a pretty good deal as college tuition goes, but what accounts for the difference? Likely taxpayer reluctance to vote new taxes is part of it. (all tax increases here have to have a public vote) But a lot of it is very visible; massive sprawl, lavish activities center, much nicer dormitories, lots of activities that don’t make money, grants for all sorts of things that don’t self-fund, outreach facilities in every town anywhere nearby.


#5

The federal ownership stopped only because Congress wanted the debt out of the budget. FNMA was still manipulated by the Bush and Clinton administrations. The federal government ran FNMA in an irresponsible way. And who’s left holding the bag? FNMA is federally owned once again.


#6

So the Clintons are squeaky clean? :confused:


#7

Exploitation is definitely a problem with capitalism. Capitalism makes our interactions all about maximizing profits, with little concern about ethics and mercy.

While people are often in the hardest times of their lives, trying to make their lives better by getting an online degree, the programs make enough profit to pay B. Clinton several million a year to serve as a “chancellor”? Do you not agree with me that the money would have been better spent by lowering tuition? Giving it to a real charitable cause?

Student loan rates are not cheap (from what I have experienced with my kids), but they are accessible. The whole system stinks. I like Germany’s model. Kids who are capable and motivated get a free college education, others have to pay their own way or stay with a different track. Their whole education program structure makes much more sense, and it is much more efficient in terms of placing kids into professions.

As far as the Clintons go… I simply don’t trust them, but I think T is worse. Wouldn’t it be nice if the government would actually indict Hillary for something, and then the whole election could be thrown into disarray? People who won’t vote for Trump will still refuse to do so, but someone may actually come forth, like maybe Hillary’s VP pick, or Bernie could come back… Hey, none of them are perfect, but we can sure do alot better. Maybe the electorate could make a group pact, whoever gets elected, we all support an impeachment as soon as the need arises.


#8

I agree, greed is a potential problem in every form of government and institution. If the only thing a for-profit entity cares about is maximizing profits, unless they are a monopoly, they won’t be around very long. People will see the lack of quality in their service or product, and take their business elsewhere. Same thing with ethics. It doesn’t happen overnight, but it works.

Free, that’s the key here, free markets and free will.

Despite government involvement in higher education, the market is still free enough, especially online, that a person can find a place that they think does not squander their money.


#9

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