Tag: thoughts

  • Thoughts on 20-Plus Years of Teaching Islam (opinion)

    Thoughts on 20-Plus Years of Teaching Islam (opinion)

    When I first began teaching Islam, there was no road map. In 2001, I was a visiting assistant professor of Islamic and Middle Eastern studies at the University of Iowa—the first full-time professor of Islam in the history of the state. I was in my 20s, still finishing my dissertation, when the attacks of Sept. 11 unfolded. Suddenly, I found myself trying to explain a 1,400-year-old religion to students who had watched the Twin Towers fall on live television.

    Teaching Islam in American universities has never been more widespread, more diverse or more embattled. That is the story of the past two decades: a field that has grown dramatically, transformed in terms of who teaches it, and now finds itself under intensifying political scrutiny.

    That experience in Iowa shaped everything that came after. I discovered that my task was not only to introduce students to the theological, historical and cultural breadth of Islam but also to help them unlearn the simplistic caricatures they had absorbed from media and politics. Islam was not a monolith. It was not synonymous with terror. It was, like Christianity or Judaism, a faith defined by argument, diversity and adaptation.

    Those class lectures eventually became the foundation for No god but God: The Origins, Evolution and Future of Islam, first published in 2005. I hoped the book would serve both general readers and university classrooms. To my surprise, it quickly became a popular text for teaching Islam in the United States and far beyond. It has been translated into dozens of languages, adopted in seminaries and world religion courses, and read in mosques, churches and synagogues.

    Two decades later, the landscape of Islamic studies in American universities looks profoundly different. In 2001, very few institutions offered dedicated courses on Islam outside of theology departments. Today, there are hundreds of such courses, spanning history, political science, gender studies and literature. The proliferation has been remarkable—though uneven. Some courses are rigorous, rooted in language and text, while others are more ad hoc, responding to student demand and global events.

    Another profound shift has been in who is teaching Islam. For most of the modern history of religious studies in America, Christian professors taught Christianity, Jewish professors taught Judaism—but it was rare to find Muslim professors teaching Islam. In nearly two decades of studying the subject, I had only one Muslim professor. That has changed dramatically. Today, Muslim scholars occupy faculty positions across the country, and new professional associations—such as the International Quranic Studies Association, of which I am a member—are fostering networks of Muslim academics who bring both scholarly expertise and lived experience into the classroom. This diversification has expanded the kinds of questions and perspectives that shape the field, though it has also forced universities to confront new debates over authority, representation and bias.

    Meanwhile, the teaching of Islam—like so many fields in the humanities—is now buffeted by unprecedented political pressure. Across the country, state governments have moved to limit what can and cannot be taught in universities and ban diversity, equity and inclusion programs. More recently, elite universities such as Columbia and Harvard have faced political scrutiny from the Trump administration and Congress into their Middle East studies programs, accused by some lawmakers of being biased. In today’s climate, teaching Islam can feel like an act of defiance. Professors often self-censor, conscious that a stray lecture note could trigger outside campaigns or even threats. The irony is that in a moment when greater understanding of Islam is needed more than ever, the very institutions best equipped to provide that education are being undermined.

    Yet this is precisely why teaching Islam in universities matters more than ever. At a time when Islam has faded from the headlines but remains entangled in the debates that define our era—from authoritarianism to surveillance to religious pluralism—the classroom is one of the few places where the faith can be encountered on its own terms. The role of professors is not to sanitize or defend Islam, but to present it in all its richness, contradictions and ongoing transformations.

    The fully updated 20th-anniversary edition of No god but God is my attempt to support that task for another generation of teachers and students. The new preface reflects on what has changed since 2005—the Arab Spring, the rise of digital Islam, the ebb of the “war on terror”—and what has not: Islam’s enduring struggle to reconcile tradition and modernity, authority and pluralism.

    More than two decades of teaching have convinced me that education about Islam cannot be episodic, tied only to moments of crisis or headlines of violence. It must be sustained, interdisciplinary and grounded in serious scholarship. It must expand beyond political science courses on terrorism and foreign policy, and beyond theology seminars comparing sacred texts, into the wider humanities and social sciences. And it must center the lived experiences of Muslims themselves.

    The classroom is not a mosque. But it is one of the few spaces where young people can confront their assumptions, wrestle with complexity, and imagine new ways of understanding the role of religion in the world. That was my conviction in 2001, when I walked into a lecture hall in Iowa just days after Sept. 11. It remains my conviction today.

    The classroom may not be a mosque, but it remains one of the few places where Islam can be encountered in all its richness, contradictions and humanity.

    Reza Aslan is a writer and scholar of religion. His books include Zealot: The Life and Times of Jesus of Nazareth and No god but God: The Origins, Evolution, and Future of Islam, now available in an updated 20th-anniversary edition from Random House. He is a professor of creative writing at the University of California, Riverside.

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  • Thoughts on Education and Freedom as Fall Begins (opinion)

    Thoughts on Education and Freedom as Fall Begins (opinion)

    As our fall semester begins, college students are filled with excitement and nervous anticipation. By my lights, they are getting ready to practice freedom in the service of learning. Back in the 18th century, the great German philosopher Immanuel Kant wrote that enlightenment was freedom from self-imposed immaturity, describing how the process of education was the practice of freedom. When people learn—embarking on the journey of thinking for themselves in the company of others—they are experimenting with choice, autonomy, relationship and discipline.

    I (usually) find it thrilling to watch students experiment in these ways, and I occasionally get to join in. They are relinquishing—not completely, and certainly not all at once—their childish ways and trying on what it means to be an adult. They begin to experience that freedom from immaturity and figure out, provisionally, the kinds of lives they want to live. This normally includes, but is not limited to, the kind of work they are prepared to do. Facing this very practical issue is part of growing up, and colleges provide various opportunities for doing just that.

    Still, many in America have doubts about whether today’s college student is, in fact, learning to be a free adult. Some have been persuaded that college campuses no longer value the open exchange of ideas but instead demand allegiance only to ideas deemed progressive. Others see colleges as failing to practice what they preach. Children of alumni or wealthy donors have a much better chance of getting admitted to highly selective colleges than ordinary Americans; the paths to colleges believed to offer the best educations are paved with gold.

    The charge of unfair admissions—like the criticism of political groupthink or mindless grinding away to get grades and internships—attacks the integrity of learning as a path to freely thinking for oneself. If colleges are unfair or corrupt in choosing their students, then the value of the education offered is undermined. If one only learns to imitate the views of one’s professors in order to win their favor, then one is wallowing in immaturity and not practicing freedom.

    Unquestionably, there has been a loss of trust in higher education, and— while less dramatic, perhaps, than the loss of trust in the judiciary, the media or Congress—it undermines the ability of colleges to teach their students. No matter how much teachers emphasize critical thinking, learning requires trust. It requires that we open ourselves to ideas and people that might have an impact on how we live. This can, of course, sometimes be disturbing, even offensive, but the deepest learning often involves reconsidering our assumptions and deeply held beliefs.

    I see this regularly in the class I teach, Virtue and Vice. I see undergraduates willing to stress test their moral intuitions against thinkers as varied as Aristotle and Machiavelli, Friedrich Nietzsche and Danielle Allen. I see students considering how they want to live by thinking with some of the central texts of our traditions. Each week they practice one of the traditional virtues and discuss this with their fellow students. They read, think, practice, discuss. Reconsider and repeat.

    Critics prone to exaggeration have claimed that this kind of traditional humanistic work is no longer possible because today’s colleges have been captured ideologically by the woke left. Of course, there have been pernicious examples of close-mindedness from progressive purists, but the current attempt at ideological capture by the Trump administration is far more dangerous, as well as dishonest. Since President Trump’s inauguration, scores of colleges are being investigated for deliberately ignoring the harassment and intimidation of their Jewish students. These investigations, I have argued, are just vehicles for the White House to put pressure on higher education.

    As a Jewish teacher and university president, it pains me to see the fight against antisemitism used as a cudgel with which to attack centers of teaching and research. I’ve been very aware of antisemitism since I was a little boy, when a fellow fourth grader told me the only thing wrong with Hitler was that “he didn’t finish the job.” I reported this to my dad, and he told me to punch the kid at the next opportunity, which I did. I got in trouble at school, but my father was not displeased. I’ve never expected antisemitism to go away, and so its recent resurgence is concerning but not surprising.

    I am genuinely startled, though, by the ways Christian nationalists in the American government use Jew hatred as a vehicle to advance their authoritarian agenda. That’s what we are witnessing today: the exploitation of anti-antisemitism by a White House determined to extort money and expressions of loyalty from higher education. Sensing opportunity, some universities see a marketing advantage in portraying themselves as “good for the Jews,” offering protest-free environments (all the while singing the praises of free speech).

    As academic leaders, of course we must support students of faith generally, and we have a particular obligation to acknowledge religious minorities who have traditionally been targets of abuse. This, of course, includes but is not limited to Jews. Not a few of my students are interested in the topic “virtue and vice” because of their religious beliefs, and I find they are at least as capable of thinking critically about their faith as secular students are when asked to reconsider their own values. They join in the process of reading, thinking, practicing, discussing. Reconsider and repeat. As we practice a virtue each week, all my students learn how moral ideas might play a role in their daily lives. How much of a role, of course, is up to them.

    When I write it’s “up to them,” I imagine their choices as part of the process of leaving behind self-imposed immaturity. Sometimes, unfortunately, parents contribute to a student remaining a child, especially when they try to run interference for cherished offspring whenever an obstacle arises. But most of the time I see undergraduates practicing freedom in a safe enough environment—not too safe that they aren’t pushed to reconsider their choices, but accommodating enough that they can explore possibilities without feeling in danger. 

    This environment is threatened by the enormous pressure the federal government is putting on higher education to “align its priorities” with those of the president. I am worried about the normalization of this authoritarian effort to reshape the ecosystem of higher education. Too many opportunists and collaborators have been responding by noisily preaching neutrality or just keeping their heads down.

    Some faculty, student and alumni groups, however, have begun to stand up and make their voices heard. Whether refusing to apologize for diversity efforts or simply standing up for the freedom of scientific inquiry, there is growing resistance to the administration’s attempt to control civil society in general and higher education in particular.

    The groups defending their campuses from governmental intrusion are not just shielding the status quo. They are resisting attempts to undermine education as the practice of freedom, safeguarding the various ways that learning can allow students and teachers to open their minds and their hearts to new ideas and ways of living.

    We don’t want the government thinking for us, telling us what the president’s priorities are so that we can imitate them. We want to learn to think for ourselves in the company of others, leaving behind a dependence on authority. Authoritarians would see us impose immaturity upon ourselves. As the new school year begins, we in higher education must redouble our efforts to model and defend the enlightenment ideals of education and freedom—while we still can.

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  • To ‘think like a lawyer’: some thoughts on the pedagogy of international law

    To ‘think like a lawyer’: some thoughts on the pedagogy of international law

    by Paolo Amorosa & Sebastián Machado

    Most law professors face a similar challenge when designing their courses: how to explain to students the enduring gap between what the law says and how it functions in reality. One of the foundational assumptions of legal education is that law is more than just the written rules found in statutes, bills, or constitutions. Without an understanding of how these rules influence a judge’s decision-making, they remain little more than pretty playthings: abstract ideas with no real-world impact. This realist approach in domestic legal education helps bridge the divide between legal theory and practice; the same arguments might apply in most disciplines and fields with a similar divide between theory and practice. If you can examine a rule and confidently predict how it will be applied, you are engaging in the most basic form of legal research. But consider a legal system without a centralised rule-making authority or a single, binding interpreter – no supreme legislature or final court to settle disputes definitively. This is the reality of international law. While there are many judicial and quasi-judicial bodies, there is no universal, mandatory forum for resolving disputes, and most conflicts never reach a formal judgment. Instead, states, international organizations, and individuals all contribute to shaping the rules by advocating for their preferred interpretations, hoping to sway the broader consensus. International lawyers refer to this evolving consensus as the ‘invisible college of international lawyers’, a term that captures the discipline’s informal, socially constructed boundaries. In essence, international law is what international lawyers do.

    Teaching international law, then, comes with an added layer of complexity: the lack of formal structures undermines legal certainty. Every international lawyer, to some degree, can influence the field. Through journal articles, blog posts, social media debates, or legal practice, they argue for their version of the correct interpretation of a rule. Academics may even challenge established meanings, making persuasive cases that defy the literal text of foundational documents like the UN Charter.

    This is why international lawyers often say that the law is made, not found. Unlike domestic legal systems, where rules are either codified (as in civil law) or derived from judicial precedent (as in common law), international law is fundamentally discursive. This creates a twofold problem. First, without an authoritative interpreter, there is no clear way to separate theory from practice. A legal advisor in a Foreign Ministry might frame a state’s actions as part of a new trend that modifies a rule (such as pre-emptive self-defense), while others denounce it as a violation (like Article 51 of the UN Charter). In this environment, the line between legal theory and practice dissolves. Second, with no objective boundaries to the discipline, the distinction between mainstream international law and critical approaches collapses. What remains is the professor’s choice: which version of the law to teach.

    Yet teaching international law does not require taking a stance on the theory-practice divide, because that divide is not inherent to the discipline. Law professors are not bound by the same rigid distinctions as, say, natural scientists, who must separate theoretical models from empirical observation. Instead, legal education can bypass this dichotomy entirely by focusing on the deeper conditions that shape how we understand both theory and practice. Rather than treating practice as a constraint on theory, students can learn to apply theoretical insights pragmatically. This approach allows law schools to teach practical skills without forcing an artificial separation between legal thought and legal action, following larger trends in pedagogical training outside legal academia.

    Still, many international law professors struggle with curriculum design because of these perceived divides. On one hand, students must master a baseline of doctrinal knowledge to enter legal practice. On the other, mere knowledge acquisition is not enough – students must also develop the ability to analyse, synthesise, and critically evaluate legal arguments. A well-rounded legal education should cultivate these higher-order skills, enabling students to engage in meta-cognitive reflection about the law they are learning.

    Moreover, there is no strong evidence that ‘thinking like a lawyer’ is a unique cognitive skill. Legal reasoning shares much with other forms of reasoning, meaning that better teaching methods alone will not necessarily produce better lawyers. Instead, what matters is equipping students with evaluative tools to interpret and refine legal arguments. By treating core legal knowledge as a foundation rather than a rigid boundary, and critical thinking as a method for engaging with that knowledge, the supposed divide between mainstream and critical approaches begins to fade.

    The same logic applies to the theory-practice debate. The tension between these approaches persists only if we assume they are mutually exclusive. Law schools often face criticism from practitioners who argue that graduates lack practical skills, while academics defend the importance of theoretical training. But must these roles be in conflict?

    Perhaps the real issue in international law is not the existence of these divides, but our insistence on treating them as inevitable. If there is little evidence that ‘thinking like a lawyer’ is a distinct cognitive skill, there is even less reason to impose it as a rigid framework for international legal education. Instead, we might focus on cultivating adaptable, reflective practitioners who can navigate both theory and practice – not as opposing forces, but as complementary dimensions of the same discipline. This is a lesson relevant for many if not all professional disciplines.

    Sebastian Machado Ramírez is Postdoctoral Researcher at the University of Helsinki, where he works on the PRIVIGO project examining private governance and international law. He holds a PhD from the University of Melbourne, where his dissertation analyzed interpretive approaches in the law governing the use of force.

    Paolo Amorosa is University Lecturer in International Law at the University of Helsinki. He holds a PhD from the same institution and specializes in the history and theory of international law and human rights. His monograph Rewriting the History of the Law of Nations (OUP 2019) critically re-examines the ideological foundations of international law’s canon.

    Author: SRHE News Blog

    An international learned society, concerned with supporting research and researchers into Higher Education

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  • Modest Thoughts From a Minor Donor to Harvard (opinion)

    Modest Thoughts From a Minor Donor to Harvard (opinion)

    Responding to Harvard University’s defiance of the coercive and illegal demands from the Trump administration, some major donors have recently urged the university to make accommodations rather than fight. A few have withheld large gifts over the last year and a half.

    Holding degrees from two of Harvard’s least wealthy schools (Divinity and Education), I have made small annual donations to my relatively impecunious alma maters for 45 years, and I offer these considerations to weigh against those of the big donors who have generally graduated from Harvard’s wealthiest, so-called major schools.

    Harvard’s resistance to authoritarian overreach bolsters the entire system of U.S. higher education, which came to be regarded as the best in the world only in the 1970s, after a century of slow development. Harvard’s defiance of unlawful authoritarianism inspires universities throughout the world.

    This controversy is therefore not just about Harvard, but all of higher education everywhere. If Harvard caves, then no university will dare to defy governmental overreach. If Harvard resists, then others will be inspired to do so and shamed if they do not.

    The urging by major donors to strike a deal with the Trump administration may result from feeling that Harvard’s small and secretive governing board, the Corporation, has, in recent months, not listened to them and ignored “the rightward shift of the country” that prompted Trump’s demands. (Although Harvard’s “major” and wealthiest professional schools—business, law and medicine—still graduate leading financiers on Wall Street and conservative justices of the Supreme Court, notwithstanding claims about the university’s “sins” of left-wing radicalism.)

    In any case, the implied threat of major donors to withhold donations is transactional, just like the demands of the Trump administration. Thus, Harvard is caught between two transactional parties. Is the defiance of coercive and illegal overreach worth the possible loss in large gifts?

    And the loss could be considerable. Over the last century, the rule in higher education fundraising is that 90 percent of gifts come from the top 10 percent of donors. Big donors count. Little ones scarcely, it seems.

    But there are financial counterpoints.

    By adjusting the spending rule for its endowment income and by floating bonds and loans, Harvard does have the resources to supplant lost federal income until its legal challenges are litigated, notwithstanding the prospect of further demands by the Trump administration.

    Indeed, the annual investment income of large endowments vastly exceeds annual fundraising. As a result, wealthy universities were already shifting their focus from “gifts to growth” of investment yield by the beginning of the 21st century. Fundraising became less important than investing endowment.

    Furthermore, major alumni donors, who might fear alienating the Trump administration by donating to Harvard, could easily make donations anonymously, which has long been a tradition in higher education.

    Finally, and most importantly, Harvard’s defiance has already inspired support from many alumni who may now do more, counterbalancing the support of transactional big donors who withdraw.

    I know that some little donors, like me, have not included Harvard in their estate plans precisely because Harvard has seemed so rich and invulnerable. As former president Drew Gilpin Faust once observed, Harvard’s commitment to its endowment could make the university “as close to immortal as any earthly institution might be.”

    Now we see that Harvard needs the support of all of its alumni in these perilous times, not only for the sake of alma mater, but all of higher education.

    Bruce A. Kimball, emeritus professor at the Ohio State University, is a former Guggenheim Fellow and co-author with Sarah M. Iler of Wealth, Price and Cost in American Higher Education: A Brief History (Johns Hopkins, 2023) and co-author with Daniel R. Coquillette of the two-volume history of Harvard Law School (Harvard 2015, 2020).

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  • Thoughts on 20 years of college teaching (opinion)

    Thoughts on 20 years of college teaching (opinion)

    I have now been teaching at Duke University for 20 years. I have been through all kinds of teaching fads—active learning, team-based learning, alternative grading, service learning, etc. You might assume that I have become a better teacher over these many years. Yet I am noticing a curious trend in my course evaluations: Some of my students like me and my courses less and less.

    As a teaching faculty member, this matters greatly to my own career trajectory, and so I’ve wondered and worried about what to do. Why am I struggling to teach well and why are my students struggling to learn?

    Looking back on the past two decades of my teaching and reaching further back into my own college experience, I see six clear differences between now and then.

    Difference No. 1: Access to Information

    When I took my first college environmental science class, way back in 1992, I was mesmerized. This was before the days of Advanced Placement Environmental Science, so I came into the class knowing almost nothing about the topic, motivated by my naïve idea to be part of “saving the world.” To learn, I had a textbook (that I still have, all highlighted and marked up) and the lectures (for which I still have my notes). Sure, I could go to the library and find books and articles to learn more, but mostly I stuck to my textbook and my notes. I showed up to the lecture-based class to learn, to listen, to ask questions.

    Today, my students show up in my course often having taken AP Environmental Science, with access to unlimited information about the course topics, and with AI assistants that will help them organize their notes, write their essays and prepare for exams. I have had to shift from expert to curator, spending hours sifting through online articles, podcasts (SO many podcasts) and videos, instead of relying on a single textbook. I look for content that will engage students, knowing that some may also spend their class period fact-checking my lectures, which brings me to …

    Difference No. 2: Attention

    When I lecture, I look out to a sea of stickered laptops, with students shifting their attention between me, my slides and their screens. I remind them that I can tell when they are watching TikTok or texting, because the class material probably isn’t causing their amused facial expressions.

    Honestly, I am finding myself more distracted, too. While lecturing I am not only thinking about the lecture material and what’s on the next slide—I am also wondering how I can get my students’ attention. I often default to telling a personal anecdote, but even as they briefly look up to laugh, they just as quickly return their eyes to their screens.

    The obvious advice would be to have more engaging activities than lecturing but …

    Difference No. 3: More Lectures, Please

    After 2020, one comment showed up over and over on my course evaluations: lecture more. My students seemed not to see the value of small-group activities, gallery walks, interactive data exercises and discussions. They felt that they were not learning as much, and some of them assumed that meant that I didn’t know as much, which leads me to …

    Difference No. 4: Sense of Entitlement

    While I teach at a private elite university, my colleagues across a range of institutions have backed this up: Some students seem to not have much respect for faculty. The most common way this shows up is at the end of the semester, when students send me emails about why my course policies resulted in a grade they think is unfair, or after an exam, when they argue that I did not grade them fairly, which leads me to …

    Difference No. 5: Assessment Confusion

    When I was in college, I took midterms and finals. I rewrote my notes, made flash cards, created potential exam questions, asked friends for old exams and studied a lot. I took multiple-choice exams and essay exams, in-class exams and take-home exams. When I first started teaching my lecture-based class, I assigned two midterms and a final. I took the business of writing exams seriously, often using short-answer and essay exams that took a whole lot of time to grade. I wanted the experience of taking the exam to help students feel like they had learned something, and the experience of studying to actually entice them to learn.

    Then, two things happened. We faculty got all excited about alternative assessments, trying to make our classes more inclusive for more learning styles. And the students started rebelling about their exam grades, nitpicking our grading for a point here and there, angry that, as one student put it, I was “ruthless” in my grading. Students didn’t show up at my office hours eager to understand the concepts—they wanted more points.

    So, I threw out exams in favor of shorter papers, discussions and activities. In fall 2024, I had 74 students and I gave a whopping 67 of them A’s. To do well in my class now, you don’t really have to learn anything. You just need to show up. Except the problem with grading for attendance is …

    Difference No. 6: Our Students Are Struggling

    We all know that our students are struggling with more mental and emotional health issues, perhaps due to COVID-related learning loss, the state of the world and so many other things. Many of us include mental health resources in our syllabus, but we know that’s not enough. Students are much more open about their struggles with us, but we aren’t trained therapists and often don’t know the right thing to say. Who am I to determine whether or not one student’s excuse for missing a class is valid while another’s is not? How can I keep extending the deadlines for a struggling student while keeping the deadline firm for the rest? Sure, there are suggestions for this (e.g., offer everyone a “late assignment” ticket to use), but I still spend a lot of time sifting through student email requests for extensions and understanding. How can we be fair to all of our students while maintaining the rhythm of course expectations?

    Usually, one acknowledges the differences between students now and “back then” at retirement, reflecting on the long arc of a teaching career. But I am not at the end—I have a long way to go (hopefully). I am expected to be good at this in order to get reappointed to my teaching faculty position.

    Teaching requires much more agility now as we attempt to adapt to the ever-expanding information sphere, our students’ needs, and the state of the community and world beyond our classrooms. Instead of jumping to solutions (more active learning!), I think it’s reasonable to step back and acknowledge that there is no one change we need to make to be more effective educators in 2025. We also can acknowledge that some of the strategies we are using to make our classes more engaging and inclusive might backfire, and that there still is a time and place for really good, engaging lectures and really hard, useful exams.

    There are fads in teaching, and over the past 20 years, I have seen and tried plenty of them. We prize teaching innovation, highlighting new techniques as smashing successes. But sometimes we learn that our best-laid plans don’t work out, that what students really want is to hear from an expert, someone who can help them sort through the overwhelming crush of information to find a narrative that is relevant and meaningful.

    The students in our classrooms are not the same students we were, but maybe there is still a way to spark their enthusiasm for our subjects by simply asking them to be present. As debates about the value of higher education swirl around us, maybe caring about our students and their learning means asking them to put away their screens, take out a notebook and be present for our lectures, discussions and occasional gallery walk. For my part, I’m reminding myself that some students aren’t all that different than I was—curious, excited, eager to learn—and that I owe it to them to keep showing up committed to their learning and, maybe, prepared with a few more light-on-text lecture slides.

    Rebecca Vidra is a senior lecturer at the Nicholas School of the Environment at Duke University.

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  • Some thoughts on fairness and student loans

    Some thoughts on fairness and student loans

    With the Comprehensive Spending Review due next Wednesday, I thought it might be worth making some general points about student loans (in anticipation of potential changes to repayment thresholds and other parameters).

    I do not think student loans are a good vehicle for redistributive measures.

    As I told a couple of parliamentary committees in 2017, the current redistributive aspects are an accidental function of the decision to lower the financial reporting discount rate for student loans from RPI plus 2.2 percent to RPI plus 0.7. Such a downwards revision elevates the value of future cash repayments and in this case it meant that the payments projected to be received from higher earners began to exceed the value of the initial cash outlay.

    The caveat here: in the eyes of government. That is the government’s discount rate, not necessarily yours. One of the reasons I favour zero real interest rates over other options is that it simplifies considerations of the future value of payments made from the individual borrower’s perspective.

    Originally, student loans were proposed as a way to eliminate a middle class subsidy – free tuition – and have now become embedded as a way to fund mass, but not universal, provision.

    I believe that if you are concerned about redistribution, then it is best to concentrate on the broader tax system, rather than focusing solely on the progressivity or otherwise of student loans. You can see from the original designs for the 2012 changes that the idea of the higher interest rates were meant to make the loan scheme mimic a proportionate graduate tax and eliminate the interest rate subsidy enjoyed by higher earners on older loans. The original choice of “post-2012” student loan interest rates of RPI + 0 to 3 percentage points was meant to match roughly the old discount rate of RPI plus 2.2%. Again, see my submission to the Treasury select committee for more detail.

    I will just set out a few illustrative examples here as to why some of the debates about fairness in relation to repayment terms need a broader lens.

    It is often observed that two graduates on the same salaries are left with different disposable incomes, if one has benefited from their parents, say, paying their tuition fees and costs of living during study so that they don’t lose 9 per cent of their salary over the repayment threshold (just under £20,000 per year for pre-2012 loans; just over £27,000 for post-2012 loans).

    That’s clearly the case.

    But the parents had to pay c. £50,000 upfront to gain that benefit for their child. And it is by no means certain that option is the best use of such available money. Only a minority of borrowers go on to repay the equivalent of what they borrowed using the government’s discount rate, and as an individual you should probably have a higher discount rate than the government. You also forego the built-in death and disability insurance in student loans.

    Payment upfront is therefore a gamble, one where the odds differ markedly for men and women. (See analyses by London Economics and Institute for Fiscal Affairs for the breakdowns on the different percentages of men and women who do pay the equivalent of more than they borrowed.)

    If a family has the £50,000 spare (certainly don’t borrow it from elsewhere), then the following options are likely more sensible:

    • pledge to cover your child’s rent until the £50,000 runs out: this allows student to avoid taking on excessive paid work during study and will boost their disposable income afterwards;
    • provide the £50,000 as a deposit towards a house purchase;
    • even put the £50,000 in a pot to cover the student loan repayments as they arise;
    • etc.

    In two of those cases, you’ll have a useful contingency fund too.

    All strike me as better options than eschewing the government-subsidised loan scheme.

    Moreover, those three options remain in the event of a graduate tax or the abolition of tuition fees.

    That fundamental unfairness – family wealth – isn’t addressed by changing the HE funding system. (I write as someone who helped craft the HE pledges in Labour’s 2015 and 2017 manifestos).

    In many ways, the government prefers people to pay upfront because it reduces the immediate cash demand.  From that perspective, upfront payment works as a form of voluntary wealth taxation (at least in the short-run). Arguably, those who pay upfront have been taxed at the beginning and are gambling on outcomes that mean that future “rebates” exceed the original payment for their children.

    Perhaps this line of reasoning opens up debates about means-testing fees and emphasises the need to restore maintenance grants … but really it points to harder problems regarding the taxation of intergenerational transfers and disposable wealth.

    I am not a certified financial advisor so comments above are simply my opinions. You should not base investment decisions on them.

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