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The FOGHORN
ROTARY CLUB OF HALF MOON BAY
September 20, 2018
THINKING WRONG - PAUL WRUBEL
Article by Joe Brennan
Photos by EJ Dieterle
Thinking Wrong about College Education Funding by President Paul Wrubel
The title "Thinking Wrong" was inspired by the presentation earlier this year "Think Wrong" by Greg Galle, son-in-law of former member Miller Golder. It is about unorthodox thinking to get other answers: ref - "What is half of 13?"
Paul has given workshops all over on how we pay for college and here is speaking up against the insanity of continuing as we currently do this. In the old system a student fills out a Financial Aid Form, 20 million of them do annually. This results in the federal methodology determining what the "expected family aid" or amount the system calculates the family's ability to pay for one year of college.
There are two standard financial forms the "FAFSA" for everyone in public schools and the "CSS profile" for private schools or 10%. (There is a website scandal because someone started FAFSA.com charging a fee while the official site is FAFSA.org which is free.)
How the formula works:
Public Private Elite
Cost of Attendance $16,000 $46,000 $74,000
Expected family contribution $10,000 $10,000 $10,000
Demonstrated Need $6,000 $36,000 $64,000
There are three forms of need-based financial aid to fill the demonstrated need:
- -Subsidized Student Loans (Self-Help)
- Work/Study (Self-Help)
- Grants and Scholarships (Free Money)
Student Loans to make up the unmet need for college has grown creating a toxic landscape.
The current arcane financial aid system was born in 1965, remaining in place for half a century. Its insidious financial depredations have resulted in the national student loan burden of $1.5 TRILLION; growing at $2,700 a second of $10 Million per hour. Americans age 25 to 34 with college degrees in 2016 had a median wealth of negative $1,900, a drop of $9,000 from 2013! Parents are raiding their home equity and retirement funds to pay for 4 to 6 years of college for their kids. This will have a huge down-the-road financial consequences for the nation's future as the longer living aging population finds itself financially strapped. There's an estimated shortfall of $6.5 TRILLION between what families need for retirement and what they actually have.
Much of this shortfall has resulted from unanticipated higher education costs for millions of American families at every income level. An estimated 500,000 mostly low-income, minority and college ready kids are foregoing college or the college of their dreams due to the financial challenge and daunting paperwork it poses. Only about 53% of college students graduate in SIX years and fewer than 43% graduate in FOUR years which results in billions of dollars needlessly lost in actual and "opportunity" costs.
The FIX for this problem is a fundamental rethinking of the way college Education is funded. Think Right: Simply change the formula or incrementally tweak the existing system...a process that has been going on for more then fifty years. Think Wrong: Do some zero-based thinking on the real causes of the system's failure. Then address those weaknesses in a new paradigm.
Thinking Wrong Overview
- Students contribute their share based upon the family's IRS AGI (assets are not counted.
- Colleges contribute to the shortfall based upon their demonstrated ability to do so.
- Colleges invoice the Department of Education for the remaining shortfall.
- Essentially the government funds the demonstrated needs of the COLLEGES not the families.
This bold new rethinking of higher education financing has been quietly test introduced to the halls of government and is currently being aired/vetted behind closed doors. Selling the plan to Congress and the American People:
Thinking Right - Mobilize the progressive population and move forward in support of the greatest governmental social program of the modern era.
Thinking Wrong - If you want to sell something, frame the issue in terms likely opponents understand and cherish. In this case in couching it in terms of Return On Investment in its role in the national economy. The greater the higher education community's involvement is in crafting the the new paradigm, the greater the likelihood of acceptance by the power brokers in our colleges and universities.
Estimated Time Line: Two years from initial project funding to passage by Congress...when Wrong becomes Right!
SEPTEMBER 20, 2018 CLUB MEETING
Article by Mary Rogren
Photos by EJ Dieterle
Greeters: Sargeant at Arms – Dwight Wilson
Pledge of Allegiance: President Paul Wrubel brought up the flag that Jackie Spear presented to the library and the pledge was led by Charise McHugh
Guests and Visiting Rotarians: A member, from the Santa Clara Club. Ayn Johnston, our beloved wife of Bill Johnston.
Charise McHugh brought her guests from the Chamber of Commerce including:
- Krystlyn Giedt - Incoming President of the Chamber of Commerce
- Eric Piro
- Marilynn Johnson
- Roy Truitt
Liz Schuck welcomed Hal Bogner, a great friend of Rotary, our systems expert, chess master, and has assisted in getting grant funding for the City
Steve Goldberg who is from the Personnel Department at Cabrillo Unified School District, and another great friend to Rotary
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We also had staff from John Parsons’ office including John W Parsons and Carla Stirling.
Mary Rogren introduced Julie Mell, Lukas’ host parent who is a frequent guest!
Happy NewsPaul Wrubel commented on how great it is to be meeting in the amazing community room at the library. Note that we can use this room as a meeting place whenever we want (assuming that the room isn’t booked!)
Mary Rogren gave her voluntary birthday check donation to our Foundation, and also shared that Caroline Gossart, our exchange student from two years ago, was recently accepted to her medical school curriculum in Belgium!
Charise also gave her voluntary birthday donation.
Steve and Kathy Wilson are celebrating their 3rd anniversary . . .
Kevin O’Brien missed last week’s meeting as he was attending his niece’s wedding in Lake Tahoe. He shared his experience with encountering bears in the pool house.
Julie Mell shared that Lukas – our exchange student – had his picture in the newspaper last week highlighting his participation in his first cross country meet.
John Evans shared that he and many other friends and family shared a wonderful week visiting with Valentina – our exchange student from five years ago. (And many of us were able to meet her at last week’s meeting.) John, Larkin and Giada also connected with both Caroline Gossart (from two years ago), and Louise Chielens (from last year) --- in very long telephone conversations over the weekend.
Mary Corcoran shared that she has connected with Rafa (from Spain – last year’s student.) Mary and Bill plan to see Rafa next month in Madrid. Mary and Bill will be moving soon to Nevada, and they are going through many transitions, including the loss of Mary’s father. On a happier note, they will be celebrating the marriage of their daughter in the upcoming weeks.
Charise invited the club to celebrate and meet her replacement at the Chamber, Krystlyn Giedt , at an upcoming event.
Youth Exchange:
Giada, our student from Italy, shared that she discovered that Americans and Italians flirt differently --- when she was told by some girls that an American boy was flirting with her in class . . .
Lukas, from Germany, shared his week, including participating in cross-country, and enjoyed spending time with Julie Mell in creating a video for the upcoming Pacifica Fog Fest.
Announcements
Paul welcomed two new Organizational members to our club --- and presented pins and membership packages to the alternate members of the club – including:
Parsons Financial (John W. Parsons and Carla Stirling.)
Chamber of Commerce (Krystlyn Giedt, Eric Piro, Marilynn Johnson, Roy Truitt) WELCOME!
Paul Wrubel presented Warren Barmore with his much coveted “PAST – President” pin.
Wrubey Awards
Paul Wrubel also presented Steve Goldberg – with a Wruby award for his help with Relay for Life and the Beach Cleanup.
Paul also presented a Wruby to Warren Barmore for finding the best item in the beach cleanup – an unopened bottle of whisky (that was opened and tested by some of the beach cleanup crew.)
Liz Schuck thanked the twenty people that participated in the Beach cleanup --- including our Rotary members (and Youth Exchange and Interact students) and guests including members from the Table of Plenty and the Jewish Community Center. Our group won the most unusual item found on the beach -- an empty package of Chocolate Cannibis.
Please sign-up for Pumpkin Festival!
And Rose Serdy would greatly appreciate help at the Abundant Grace breakfast on the last Wednesday of the month.
REMINDERS
Our Monthly Rotary Day at the Community Free Breakfast (held at the Lutheran Church will be Wednesday, OCTOBER 31. Please sign up with ROSE SERDY for a shift for future days (last Wednesday of each month.)
PHOTO GALLERY