Post Pandemic, College Students Need to be More Careful about Career Path

Since millions of people have been laid off and are looking for jobs, college students are petrified today about their future. They need meaningful guidance and counseling in choosing the right curriculum, leading to a labor force-friendly career path. 

Here are ten basic suggestions they should consider in deciding on a risk-managed college education that will eventually help them build a forward-looking career path.

#1 STEM Education: The current college students should avoid all cop-out business and humanities majors, concentrating on STEM education or healthcare sciences, which the job market demands. They should also negotiate free tuition, at least for the coursework involving the major. Those who are starting out with the right academic credentials but are ineligible for financial aid should ask colleges to buy down their student loan rates, which may involve some shopping around, but the effort could be rewarding. 

#2 GRE Score: Whether they plan on master's education or not, they should prepare and score well in GRE, which could be an excellent pre-marketing tool as their resumes will stand out, narrowing the competition down.

#3 Internships: College students should take advantage of all meaningful internships, even if they are unpaid, and pour hearts into their assignments while building good professional relations with internship supervisors and other managers they interact with. Smart internship work often leads to hiring after graduation. The internship manager could also be an excellent professional reference on the resume.

#4 Campus Interviewing: They must take campus interviewing extremely seriously as these jobs are usually geared towards recruiting new graduates, i.e., not in direct competition with those already in the labor force. While preparing for those interviews, they must pay special attention to three primary issues:

1. Possess sound knowledge of the company they are interviewing with.
2. Not fall into the trap of talking about their negatives.
3. Be ready with 3-4 brilliant questions that would wow the interviewers. 

#5 Resumes: While a one-page resume is ideal for applying for jobs, including campus interviews, the senior-year students should have their amplified resumes stored on personal websites, the links of which should be indicated on the one-pager. Additionally, to enhance their self-image, they should design and develop the websites themselves, using self-directed sites like Bubble, which will also help keep costs down. Do they need any before interviewing with their targeted companies? 

#6 Match Practice: Instead of ignoring the companies they are not interested in, they should accept and use those interviews as match practice to prepare for the targeted interviews. They must, therefore, take match practice very seriously to get the most out of the targeted interviews. The more match practice they get, the more prepared they would be for the targeted interviews.

#7 Social Media: As employers tend to investigate the candidates' social media accounts to find out more about them, they must know there is no room for a lack of judgment in social media. On the other hand, their social media postings should complement their resumes. They must not expose any political bias either. Companies want the best and brightest employees, not a bunch of political mouthpieces. 

#8 Part-time Jobs or Day-trading: If they need to supplement income, they should try to zero in on part-time jobs that also complement their career path; for instance, while pursuing a career in nursing, one should look for a job with an insurance company -- say a private workmen's compensation insurance -- which most mainstream nurses might not be interested in. It becomes a win-win situation. As far as day-trading is concerned, it should be a no-no, as it is very stressful.

#9 Healthy Lifestyle: College students should maintain a good diet and exercise regimen to stay healthy and boost energy. There is no room for smoking and drinking alcoholic beverages in student life. 

#10 Dating: Though controversial, all college students should try to refrain from dating during the first two years of college, preferably until they complete a college education. Relationships breed a lot of stress and tension, not conducive to top-line performance. Most aspiring students should take it seriously, at least in the first two years of college. 

Stay safe!

-Sid Som

homequant@gmail.com

Post Pandemic, Student Loans must be Labor-force Friendly

According to the recent PISA scores, which measure the necessary skills (reading, math, and science) of 15-year-olds, the US ranked 30th in Math among the 38 OECD countries – nothing to write home about, right? We need a sea change in the way our colleges work. In doing so, we need to rethink and reinvent the qualification criteria for student loans. Here are some suggestions: 

1. Interest Rates on Student Loans must be tied to SAT Scores and APs. Obtaining student loans should be no different than securing home loans. Let's face it: Two prospective homebuyers (mortgage applicants) with 600 and 800 FICO scores, respectively, will be offered vastly different mortgage interest rates, down payment requirements, and origination fees (points) by the same bank. Similarly, interest rates on student loans should be a function of the SAT and AP scores (these are comparative metrics while the general academic records aren't). Those scoring 1,580 (out of 1,600) on the SAT and complete six APs with all 5's must be eligible for a much lower interest rate than their counterparts scoring 1,300 on the SAT completes three APs with all 3's. This merit-based system will incentivize everyone to do well academically from the get-go, making the loan program a student loan scholarship program.

2. Sallie Mae must publish SAT/AP-based Student Loan Rates to provide Transparency. Sallie Mae, the largest student loan provider, and other large providers like Citi, Nelnet, Wells, etc. must develop and publish SAT/AP-based rates to educate students regarding high scores' advantages. If the high school students (starting in sophomore) are taught that high score equals low rates, they would be working harder, thus gradually bumping up the curve, making the system globally more competitive. Of course, unlike mortgage rates that change daily, the proposed SAT/AP-based student loan rates would be revised annually based on the new data trends (i.e., improving scores). Hopefully, the rate chart would be prominently displayed in all high school cafeterias as a constant reminder that a little extra push would go a long way. 

3. Interest Rates on Student Loans must be Significantly Higher for Lateral education (education for the sake of education). When students stay back in schools and continue to take unrelated courses aimlessly (e.g., 2nd/3rd major or 2nd Master's, etc.), lenders must discourage such loans by charging significantly higher interest rates related to those credits. If students plan on co-concentrating (e.g., finance and applied math), they must declare their intention right at the outset while applying for loans, thus locking in their preferred rates throughout the period, as well as to avoid having to pay a significantly higher rate down the road for the "co" in the form of a second major. Frequently, meaningful co-concentrations help job-seekers narrow down the competition. Likewise, many employers prefer those graduates as they bring in genuinely complementary knowledge.

4. Interest-free Student Loans must be provided to All STEM Candidates. Instead of enticing foreign STEM graduates with visa adjustments, we must learn to nurture our own. And, it must start with an awareness movement in the middle and high school. At the core of this movement lies the marketing of the female students' awareness in that they have "equal access" to this career domain. Until and unless our young ladies are convinced of equal access, we will have no choice but to depend on the foreign employees. In promoting STEM education, teachers and counselors must also explain to the students that 10's of thousands of STEM jobs remain unfilled and, as a result, our "volume" employers are forced to hire foreign employees to fill in those slots. Interest-free student loans could be a big incentive to entice more students to look into this colossal career domain. 

   

5. Ideally, a moratorium on student loans is needed for business and humanities majors. Due to the easy access to student loans, far too many students – relative to the aggregate market demand – continue to major in business and humanities, resulting in significant disguised unemployment all across the country, arguably reaching a point of moral hazard. To reduce the incidence of such disguised unemployment, we need a moratorium on such student loans for some time, at least 5 to 7 years, thus allowing enough time to get the excess market supply meaningfully absorbed while the wage level rises back up to the point of equilibrium. Absent student loans for business and humanities, only a small percentage of the future student population –- mostly from the well-to-do families and foreigners –- will opt for these majors. 

Last but not least, STEM Students in State Schools must qualify for Financial Aid ahead of all others. In addition to interest-free student loans, STEM students must receive financial aid ahead of their counterparts. Given the urgent need for STEM graduates in our economy, it does not make much sense to treat all economic needs equally. At this point, college education must be compared with and treated like government services, meaning essential education (like essential government services) must always receive higher weights and protections than the not-so-essential education (like non-essential government services). 

Simply put, STEM education must be declared, protected, and promoted as "essential" education. Ceteris paribus, the qualified STEM student population, must get the first shot at the pool of financial aid, and the residual will then be distributed to the other disciplines depending on the needs of the labor force. 

Again, it's high time that we make our student loan programs more labor-force friendly. Our students deserve better.

Stay safe!

-Sid Som

homequant@gmail.com 

Are You a Future Superstar? Take the Test!

Save the obvious: You aced the SAT and GMAT, graduated from Ivy, completed a top MBA program, and joined a Dow component. Despite these astounding achievements, you are not a superstar -- yet. Just being brilliant does not make you a superstar. Let's put it this way: It is necessary but isn't sufficient. Only a tiny percent of brilliant minds go on to be recognized as true superstars. To be a superstar, you must uniquely and spontaneously rise above the smart peers, with a higher persona and more humane qualities. So, what are those other qualities?

1. They Protect and Promote Staff and Peers – Superstars are some of the most selfless leaders, always putting the interests of staff members and peers ahead of their own. Protecting and promoting others is not only their second nature, but they also go the extra mile in doing so. Atop, they achieve all this quietly and consistently, without letting anyone know that they are so selfless in taking care of their immediate environment. As a kid, I was confused about something, so I sought my mom's advice. Her spontaneous reaction was, "Son, whatever you do, always think of others first. If you act that way, you will never have to worry about yourself; God will always take care of you." That's the universal mantra all superstars subscribe to.

2. They are Very Humble, Pleasant, and Soft-spoken – Superstars tend to be incredibly humble, delightfully pleasant, and esthetically soft-spoken. Though the departments or agencies they lead invariably outperform all others, it is beneath their dignity to ever brag about it or take any personal credit for their achievements. They generally give full credit to their staff, or a collective effort, at best. Of course, the evil folks around them interpret these great virtues as signs of weakness. It's always the average and overrated that tends to be a snob and arrogant. On the other hand, superstars are like saints and are uniquely qualified to smile away all evil stimuli. 

3. They are Least Confrontational, moving on when the environment becomes Intolerant – Superstars are usually the least aggressive and mostly the low-key kind. They never waste time and energy on meaningless or greed-filled confrontations and exercises. On the contrary, they are incredibly smooth operators, uplifting the environment with exceptional intellectual faculty and superior emotional stability. As they know their mission all too well, they rarely stick to one job for too long. Despite conventional wisdom, they move on for newer and more significant challenges when they realize they do not have much more to contribute to that environment. Alternatively, when they face intolerant environments (e.g., psycho boss, confrontational peers, unmanageable staff, hostile labor unions, etc.), they move on, knowing very well that there is a better home elsewhere. Money, power, and prominence do not entice them. Contributing to the highest level is the sole mission of their existence.

4. Steve Jobs' Manpower Plan is tailor-made for them -- Steve Jobs (RIP) used to say, "It does not make sense to hire smart people and then tell them what to do. We hire smart people to tell us what to do." In other words, great institutions hire the best and let them work on their choosing projects, thus allowing them to maximize contributions to the business objective. Superstars always look for such flexible environments, with adaptable supervisors. They do not enjoy environments where they have to take instructions from the second-rate supervisors frequently. As they get started, they quickly learn and understand the big picture, figuring out where they could be most productive and contribute optimally. A fantastic operations manager is a great employee, but not a superstar. A superstar is an original thinker, a consistent enterprise-level solutions provider, a selfless team player, and a passionate protector. They love what they do. 

5. They Prove their Vision in important Management Meetings – While superstars tend to be low-key, they take control of the critical management meetings, ensuring that their vision sets the agenda. This is not a selfish act; this is done to educate the attending senior management of the availability of the forward-looking plan that aligns more effectively with the corporate objective than the erstwhile program often promoted by the incompetent supervisors (in place due to political appointments, nepotism, favoritism, quotas, etc.) to maintain the status quo and control. When the unfit steals the limelight, the irrelevant agenda disparages the big picture, denigrating the greater good and weakening its power. Superstars' DNA forces them to fight tooth and nail to strengthen the institution and not undermine it. 

6. To them, quality is everything – Their lives revolve around quality, leaving the quantity to the great employees. So, they carefully research and join environments that continually emphasize and consistently promote quality ahead of quantity. Steve Jobs used to say, "One home run is much better than two doubles." Many brilliant minds dilute themselves by trying to strike a balance between quality and quantity. Fortunately, the budding superstars figure out from the get-go that they are mutually exclusive, so they learn to focus on quality, i.e., research and innovation. To entice and hire the superstars, the great visionary entrepreneurs offer disruptive opportunities leading to world-class creativity and innovations, coupled with an unrestricted domain of flexibility with the power of decision-making -- the two elements that helped fashion the great institutions like Apple, Google, and others.

7. They Know the Importance of Time in Professional Life and how to Manage it Optimally – This is one area where the superstars beat the other brilliant minds. Superstars come to terms that time is the most precious thing in professional life, so they learn to utilize every moment of it efficiently. Their inherent aversion for arrogance teaches them to accept mistakes honestly, making it part and parcel of their professional learning and growth, which helps them grow into natural perfectionists. In a way, superstars' lives closely resemble those of the cake decorating champions who never fail to complete their masterpieces on time, every time. Whether they are decorating the next masterpiece or working on applying more intelligence to the Rover on Mars to seek out water under the surface, they are continually monitoring and managing time, with utmost precision and respect, considering how brief the human life span is and where time waits for none.

8. They believe that the Total is Greater than the Sum of the (Contributing) Parts – Superstars never waste time and energy looking at the glass as half full or as half empty; to them, it's always full. They know the sum-total of people's strengths far outweighs their weaknesses, so their management style is still strength-based. From their young life, they learn to figure out how to harness the power of an available resource pool to the max. As a result of their ever-positive attitude and outlook towards life and work, the departments or agencies they manage to perform incredibly efficiently, remaining consistently ahead of the competition. While the game evaluates each resource as a combination of strength and weakness, they look at resources as an all-strength event or a composite, which helps them deploy and utilize resources faster, more effectively, and often incredibly cheaply. 

9. They are Incredibly Efficient Budget Managers and Lead by Example – While the average and overrated perennially cry for an ever-expanding budget (that's the only thing they are good at!) to run from their incompetence, the superstars, on the other hand, continuously prove to the world the need for and the ultimate use of asset management. They are the living proof that when a group of ordinary people is placed under a great leader, it rocks -- just a matter of time. Of course, the flip side is equally valid. The reason some great institutions go down the tube is the poor leadership with bankrupt vision. On the way down, they keep pointing fingers at everyone and everything except themselves. Superstars never pass the buck. They also develop an excellent eye to seek out talent, putting them in charge of the key and strategic nodes to strengthen their departments or agencies, setting examples for others to follow. Setting and leading by example is inherent in them. But one will never hear them asking for a bigger budget or bragging about their performance. They are smooth and quiet operators.

The departure of a superstar often leaves behind a long-lasting vacuum that is rarely replaced. Evils drive them away. Fools rejoice after regaining their paradise. The smart ones share their fond memories for years, telling the world it was their once-in-a-lifetime privilege to have known and worked with a superstar.

Sid Som, MBA, MIM

homequant@gmail.com

Link to the Book

Post Pandemic, Student Loans must be Labor-force Friendly

According to the recent PISA scores, which measure the necessary skills (reading, math, and science) of 15-year-olds, the US ranked 30th in Math among the 38 OECD countries – nothing to write home about, right? We need a sea change in the way our colleges work. In doing so, we need to rethink and reinvent the qualification criteria for student loans. Here are some suggestions: 

1. Interest Rates on Student Loans must be tied to SAT Scores and APs. Obtaining student loans should be no different than securing home loans. Let's face it: Two prospective homebuyers (mortgage applicants) with 600 and 800 FICO scores, respectively, will be offered vastly different mortgage interest rates, down payment requirements, and origination fees (points) by the same bank. Similarly, interest rates on student loans should be a function of the SAT and AP scores (these are comparative metrics while the general academic records aren't). Those scoring 1,580 (out of 1,600) on the SAT and complete six APs with all 5's must be eligible for a much lower interest rate than their counterparts scoring 1,300 on the SAT completes three APs with all 3's. This merit-based system will incentivize everyone to do well academically from the get-go, making the loan program a student loan scholarship program.

2. Sallie Mae must publish SAT/AP-based Student Loan Rates to provide Transparency. Sallie Mae, the largest student loan provider, and other large providers like Citi, Nelnet, Wells, etc. must develop and publish SAT/AP-based rates to educate students regarding high scores' advantages. If the high school students (starting in sophomore) are taught that high score equals low rates, they would be working harder, thus gradually bumping up the curve, making the system globally more competitive. Of course, unlike mortgage rates that change daily, the proposed SAT/AP-based student loan rates would be revised annually based on the new data trends (i.e., improving scores). Hopefully, the rate chart would be prominently displayed in all high school cafeterias as a constant reminder that a little extra push would go a long way. 

3. Interest Rates on Student Loans must be Significantly Higher for Lateral education (education for the sake of education). When students stay back in schools and continue to take unrelated courses aimlessly (e.g., 2nd/3rd major or 2nd Master's, etc.), lenders must discourage such loans by charging significantly higher interest rates related to those credits. If students plan on co-concentrating (e.g., finance and applied math), they must declare their intention right at the outset while applying for loans, thus locking in their preferred rates throughout the period, as well as to avoid having to pay a significantly higher rate down the road for the "co" in the form of a second major. Frequently, meaningful co-concentrations help job-seekers narrow down the competition. Likewise, many employers prefer those graduates as they bring in genuinely complementary knowledge.

4. Interest-free Student Loans must be provided to All STEM Candidates. Instead of enticing foreign STEM graduates with visa adjustments, we must learn to nurture our own. And, it must start with an awareness movement in the middle and high school. At the core of this movement lies the marketing of the female students' awareness in that they have "equal access" to this career domain. Until and unless our young ladies are convinced of equal access, we will have no choice but to depend on the foreign employees. In promoting STEM education, teachers and counselors must also explain to the students that 10's of thousands of STEM jobs remain unfilled and, as a result, our "volume" employers are forced to hire foreign employees to fill in those slots. Interest-free student loans could be a big incentive to entice more students to look into this colossal career domain. 

   

5. Ideally, a moratorium on student loans is needed for business and humanities majors. Due to the easy access to student loans, far too many students – relative to the aggregate market demand – continue to major in business and humanities, resulting in significant disguised unemployment all across the country, arguably reaching a point of moral hazard. To reduce the incidence of such disguised unemployment, we need a moratorium on such student loans for some time, at least 5 to 7 years, thus allowing enough time to get the excess market supply meaningfully absorbed while the wage level rises back up to the point of equilibrium. Absent student loans for business and humanities, only a small percentage of the future student population –- mostly from the well-to-do families and foreigners –- will opt for these majors. 

Last but not least, STEM Students in State Schools must qualify for Financial Aid ahead of all others. In addition to interest-free student loans, STEM students must receive financial aid ahead of their counterparts. Given the urgent need for STEM graduates in our economy, it does not make much sense to treat all economic needs equally. At this point, college education must be compared with and treated like government services, meaning essential education (like essential government services) must always receive higher weights and protections than the not-so-essential education (like non-essential government services). 

Simply put, STEM education must be declared, protected, and promoted as "essential" education. Ceteris paribus, the qualified STEM student population, must get the first shot at the pool of financial aid, and the residual will then be distributed to the other disciplines depending on the needs of the labor force. 

Again, it's high time that we make our student loan programs more labor-force friendly. Our students deserve better.

Stay safe!

-Sid Som

homequant@gmail.com 

Making US College Education more Labor-force friendly

According to the most recent (2015) PISA scores which measure the basic skills (reading, math and science) of 15-year-olds, the US ranked 30^th in Math among the 38 OECD countries – nothing to write home about, right? We need a sea change in the way our colleges work. Also, we need to rethink the qualification criteria for student loans. Here are some remedies: 

     1. College Accreditation must require Local and Regional Business Participation – One of the perennial complaints of the US college education is that it’s too theoretical. Despite the rising trend of internships, only a small percentage of the graduating students are blessed with this fortune, mostly in highly-sought-after disciplines like the STEM. College accreditation must require local and regional business participation (including representation on the board), allowing meaningful access to the business, science and technology community. Ideally, college charters must stipulate that at least 33% of all credit courses be taught by external experts so the students get to learn how the theories are actually being implemented in ‘live’ environments. Of course, it must be a simultaneous process, meaning teaching theories and practice must take place during the same quarter or semester. For example, students specializing in real estate finance must learn from the top mortgage professionals as to how the various mortgages are originated, including the full array of the paperwork involved (industry standard forms, etc.). Likewise, the STEM students who are considering a career in technical trading must learn from the renowned hedge fund managers and (program trading) algorithm scientists. Colleges and universities must therefore offer majors in line with the availability of the aforesaid local and regional industry experts. Needless to say, there will be no dearth of successful industry people who would be more than willing to teach such classes. This joint venture is a necessity today.

     2. New Professors must have at least 3-5 years of Verifiable Business Experience – Colleges must look for qualified professors (US PhD) with actual hands-on business experience. They will rise above the “canned” case studies as they are often antiquated and out of sync with the marketplace. These new crop of professors will also make better liaison with the industry experts, thus vetting and selecting the most fitting ones (with outstanding technical expertise) to teach applications. These technical experts will be able to explain and demonstrate the pieces that comprise the black box. In other words, these professors would know how to avoid walking into the old trap – inviting generalists. Exposing the young students to such generalists tends to be futile as the missing link becomes more elusive. On the other hand, all professors – new and existing – must be allowed and encouraged to work as consultants so they remain thoroughly conversant with the ever-changing industry standards and practices.

     3. Interest Rates on Student Loans must be tied to SAT Scores and APs – Obtaining student loans should be no different than obtaining home loans. Let’s face it: Two prospective homebuyers (mortgage applicants) with 600 and 800 FICO scores, respectively, will be offered vastly different mortgage interest rates, down payment requirements and origination fees (points) by the same bank. Similarly, interest rates on student loans (to pay for college education) should be a function of the SAT and AP scores (these are comparative metrics while the general academic records aren’t). For example, the student who scores 1,580 (out of 1,600) in SAT and completes six APs with all 5’s must be eligible for a much lower interest rate than his/her counterpart who scores 1,300 in SAT and completes three APs with all 3’s. This merit-based system will incentivize everyone to do well academically from the get-go. By the same token, those who fail to do well in SAT and AP may consider other avenues: community colleges, vocational schools, etc. Simply put, we need an incentive-based school system where performers are greatly rewarded. The current system is backward-bending and requires significant overhaul.   

    4. Sallie Mae must publish SAT/AP-based Student Loan Rates to provide Transparency – Sallie Mae, the largest student loan provider, and other large providers like Citi, Nelnet, Wells, etc. must develop and publish SAT/AP-based rates to educate and entice students of the advantages of the high scores. If the high school students (starting in sophomore) are taught that high score equals low rates, they would be working harder, thus gradually bumping up the curve making the system globally more competitive.

     Of course, unlike mortgage rates that change daily, the proposed SAT/AP-based student loan rates would be revised annually on the basis of the new data trends (i.e., changing scores). Hopefully, the rate chart would be prominently displayed in all high school cafeterias as a constant reminder that a little extra push would go a long way. Here is an example. Actual rates must be derived from the recent loan data from Sallie Mae and other major lenders in the field. 

 

(Click on the image to enlarge)

     5. Interest Rates on Student Loans must be Significantly Higher for Lateral education (education for the sake of education) – When students stay back in schools and continue to take unrelated courses aimlessly (e.g., 2^nd/3^rd major or 2^nd Master’s, etc.), lenders must discourage such loans by charging significantly higher interest rates related to those credits. If students plan on co-concentrating (e.g., business and economics; social science and statistics; applied economics and math; finance and applied math, etc.), they must declare their intention right at the outset while applying for loans, thus locking in their preferred rates throughout the period, as well as to avoid having to pay a significantly higher rate down the road for the “co” in the form of a second major. Oftentimes, the meaningful co-concentrations help job-seekers narrow the competition down. Likewise, many employers prefer those graduates as they bring in truly complementary knowledge.

     6. Interest-free Student Loans must be provided to All STEM Candidates – Instead of enticing foreign STEM graduates with visa adjustments, we must learn to nurture our own. And, it must start with an awareness movement at the middle and high school. At the core of this movement lies the marketing of the awareness to the female students in that they have “equal access” to this career domain. Until and unless our young ladies are convinced of the equal access, we will have no choice but to depend on the foreign employees. In promoting STEM education, teachers and counselors must also explain to the students that 10’s of thousands of STEM jobs remain unfilled and, as a result, our “volume” employers are forced to hire foreign employees to fill in those slots. Interest-free student loans could be a big incentive to entice more students to look into this colossal and unrestricted career domain. Obviously, once accepted, the qualified yet economically disadvantaged students, irrespective of ethnicity, must continue to receive (full) free STEM education, at both public and private institutions. 

    

     7. STEM Students in State Schools must qualify for Financial Aids ahead of all others – In addition to interest-free student loans, STEM students must receive financial aids ahead of their counterparts. Given the urgent need for STEM graduates in our economy, it does not make much sense anymore to treat all economic needs equally. At this point, college education must be compared with and treated like government services, meaning essential education (like essential government services) must always receive higher weights and protections than the not-so-essential education (like non-essential government services). Simply put, STEM education must be declared, protected and promoted as essential education. Ceteris paribus, the qualified STEM student population must get the first shot at the pool of financial aids and the residual will then be distributed to the other disciplines depending on the needs of the labor force. Of course, it has been assumed that the health and mental care education – another market area with critical shortages here – is part and parcel of the STEM, specifically part of ‘S.’   

     8. Ideally, a Moratorium on Student Loans is needed for Business and Humanities Majors – Due to the easy access to student loans, far too many students – relative to the aggregate market demand – continue to major in business and humanities, resulting in significant disguised unemployment all across the country, arguably reaching a point of moral hazard. In order to reduce the incidence of such disguised unemployment, we need a moratorium on such student loans for a period of time, at least 5 to 7 years, thus allowing enough time to get the excess market supply meaningfully absorbed while the wage level rises back up to the point of equilibrium. This pause will allow Sallie Mae to re-evaluate its existing debt load, meaning if they could use a meaningful stress test to evaluate if they might be approaching the "too big to fail" threshold. Meanwhile, a good chunk of the potential fallout population (business and humanities majors) would be redirected to the STEM universe. Sadly, if this decline is not arrested, the possibility of a bailout would be on the horizon in not too distant future (considering the student loan portfolio in the US has recently eclipsed $1.5T). Absent student loans for business and humanities, only a small percentage of the future student population – mostly from the well-to-do families and foreigners – will opt for these over-subscribed majors. Obviously, neither group would pose any renewed threat to the US labor force or contribute to the accentuation of the aforesaid bailout scenario.     

     9. Encourage Ivy League and other Renowned Schools to Eradicate "Legacy" Admission – The legacy admission system is nothing but a "privileged" quota system. Any quota system is detrimental to the overall growth and equality. Yes, applicants from the poorer families must not be discriminated against, but that financial hand-holding must come in the form of added financial aids. Therefore, the better way to handle that event is to increase the family income limit from $60K to $100K for full free-ships. Even a geo-indexed multiplier could be experimented with (Case in point: The purchasing power of $100K family income in NYC is significantly lower than that of Wichita, KS, so to say). In a free society, merit must never be compromised. For instance, if a particular ethnic group qualifies for 60% of all admissions at Harvard, they must be admitted as such, unconditionally. Of course, to promote STEM education, Ivys and other major schools should offer financial aids to qualified STEM applicants ahead of the other disciplines, for a period of time, until the home-grown STEMs are well-represented on the labor force. 

     10. Last but not least, Professors must be Apolitical in classrooms, leaving their ideology, affiliations and agendas outside (the classrooms) – Most American students take on huge loans for college education so they deserve the highest quality education in preparation for successful careers. Unfortunately, too many professors bring their political rhetoric and viewpoints to the classroom, in an effort to brainwash and indoctrinate students to their personal political agenda. This is totally unacceptable. We must keep our great educational institutions free from such partisan politics. Yes, the professors are entitled to their political viewpoints, without commingling with the education inside the classrooms. Going forward, all new hires must be independently vetted (including all of their social media accounts, going back at least ten years) and any political bias must be seriously investigated. Our labor force needs future industry leaders, not political activists. When our institutions become nonaligned and professors’ non-partisans, our labor force will regain its old glory, becoming the envy of the world, again! Of course, in order to weed out politics from our colleges, we must consider one final option: All professors, including the departmental chairpersons, should be hired and placed on 4-year contracts, instead of career tracks. Competition is the cure-all medicine!   

Again, it’s high time that we make our college education and student loans more labor-force friendly. Our students deserve better.

- Sid Som, MBA, MIM

President, Homequant, Inc.

homequant@gmail.com

Link to the Book