Economic Woes and PhD Programs

[zenny23]

Has anyone worried that the current economic crisis may have a trickle down effect and screw us out of our graduate education

Comments

[chasbrown]

I think what will be hardest hit is private loans, since banks don't have the capital for lending the money. That's why this whole fiasco is so serious... without money to loan, banks can't give credit, which means even if you have a nice job, "good credit", and want to buy a house, there may not be any money floating around for a bank to lend to you.

As for funding, nothing in life is guaranteed, be it from your institution, or from the government. I had a number of frineds have their EPA Star money dry up on them when Bush cut funding to the program. People who had been guarenteed three yours of funding only got one or two years. Pretty lame.

[crankyasanoldma]

Generally speaking, bad economic times are good for colleges and universities, because people out of work seek further education. But it's not as if institutions will be untouched. Families with declining incomes and investments will be less able to pay for college. And institutions may see significantly lower returns on their endowment, which cuts into the budget.

As for meeting payroll, it's hard for me to imagine an institution being caught short, but I suppose I could happen.

You are thinking too small

[elorie]

You're assuming that "real jobs" will be available, which is not a good assumption to make.

I think if it gets that bad that people will be starving in the street and not being able to stay in grad school will be the least of our worries.

Re: You are thinking too small

[journalismgirl]

I agree. If this truly is going to be the next Great Depression, there are a lot bigger things to worry about than a lack of funding.

Re: You are thinking too small

[fountaingirl]

I have a Ph.D., drive 3.5 hours EACH WAY to a tt job, started looking for a job in my now-hometown LAST JANUARY, and am still looking. AND I have been looking both in and out of academia.

It is scary as hell now to be on any kind of job market.

[interinvention]

it's true that individual accounts are insured up to 100k. But the bulk of a given institution's assets should be spread out in many investments and types of investments.

[interinvention]

My comment addresses the situation wherein your funding is coming from an institutional fellowship. As others have said, bank loans and credit are more at risk, from what I understand.

[sensaes]

Buy gold.

And Ramen noodles.

[umlautless]

Back in the 70s my grandfather bought silver as a Good.Safe.Investment (at the time he had about 10 rental properties he was renting out. Sold them to buy silver.) The thing was, he bought it at something like $26/ounce; and then the economy got all good for rentals and bad for precious metal, because silver dropped down to something like $5/ounce. But now it's on the climb again, and my mom and I are both thinking of robbing Grandpa the minute it hits $27/ounce.

[sensaes]

If it's possible to salute both your grandfather's long-term prudence and your outstandingly cold-hearted opportunism without it looking like some kind of surrender gesture, then I'm.doing.that.

[tx_cronopio]

mmmmm, Ramen! Good thing I like it :)