Is College a Scam?



We live in a country where the student debt is the second largest debt after mortgages. U.S is one of the nations where the education cost is outrageous and almost impossible to cover without taking any loans.  The cost is so high, because it is purposely set up that way. Students are being offered loan programs, which allow the schools to increase the tuition each year. The higher the tuition, the better the school’s reputation – and we all know it. According to the article the “average student loan balance for a 25-year-old is $20,326.” For most of the young adults, it takes until middle age to pay off the student loans. But is it all worth it? A huge number of students have difficulties finding a job after graduation or are being terminated after a short period of time. Bennett looked at the 3500 colleges and universities in the U.S and calculated the return on investment. The results were a bit shocking. Only 150 institutions had a positive return. The top 10 (ranked by Bennett) are listed below:


  1. Harvey Mudd College
  2. California Institute of Technology
  3. Massachusetts Institute of Technology (MIT)
  4. Stanford University
  5. Princeton University
  6. Harvard University
  7. Dartmouth College
  8. Duke University
  9. University of Pennsylvania
  10. University of Notre Dame

Bennett said “college is worth it if you get into a top tier university like Stanford, or study an in-demand field like nuclear engineering at even a lower tier school.” Not everyone can afford to go to Stanford.

I somewhat agree with Bennett’s point of view, since the top companies only retain talent from the ivy league schools. Some organizations will not consider inviting you for an interview, if you didn’t go to a top university. I believe everyone deserves a chance, and school should not be the only factor that impacts your future. However, we live in a society where the “brand name” matters the most. Universities compete with each other by establishing a good reputation. In result, students pick the schools that will guarantee a job in the future. The vicious circle closes. In order to create some equilibrium, universities that are less expensive should implement a breakthrough improvement. As we learned in class, innovation and creative thinking is crucial. Also, such schools should use the benchmarking method. By researching the industry and following the footsteps of the successful colleges it will lead to a superior performance. It will give them a chance to become more popular, and hopefully, a positive return on investment ratio for the students. I think more students are willing to go to a more affordable college, where the future outcome is bright.

Unfortunately, this is not the case. As I mentioned before, the more you pay for your tuition the higher chances of getting a job. The question remains – is this fair?

Links where I found the article and the pictures used for this blog:×480/

Costco vs. Sams club: what is the advantage of whole sellers?

Is buying in bulk really more cost efficient? Yes and no. Whole sellers like Costco and Sam’s club sell their products in bulks to their customers.  Both Costco and Sam’s club give out the idea to the public that if they buy in bulk, they are saving money. This is not necessarily true. It depends on what you are buying.

For example, Produce is a “do not buy”  in bulks for obvious reasons of course.  How long would it last you? It would go bad and end up in the trash if you don’t use it up quick.  But frozen foods and meats are products that you should buy in bulks.  It is more cost efficient to buy them in large quantities and it will last you long.  The disadvantages of buying in bulk and being apart of the wholesale clubs is the annual membership fees. It also easy to get carried away and go over your budget when you are buying in bulk. Expired shelf life can also be a disadvantage. But despite the disadvantages, whole sellers manage to attract people to them. This is because of the savings in buying in large quantities and having to make less shopping trips, which overall saves you time and transportation costs. The savings are the main reason as to why Costco and Sam’s club are so successful.

Now whether Sam’s club is a better whole seller or Costco is the question. Each of them have different management techniques.

One of the critical decisions in Operations management is the location. Sam’s club is located in areas where people have to budget shop while Costco tends to be located in the wealthier suburbs. In terms of managing quality is concerned, Costco provides better quality   and less selection in their management techniques while Sam’s club offers more selection in their products but with lower quality.  Hence, why Sam’s club is a better place for most everyday necessities such as toilet paper and water bottles in which brand name does not matter. But, Costco is better for those looking for better brand names such as in clothing.  It is also proven that Sam’s club membership fee is cheaper than Costco’s. Costco pays their employees more and that actually effects the environment in the store. If the employees are getting paid well, they will have a better work environment with less stress; therefore providing better customer service.

Overall, I prefer Costco over Sam’s club. This is because of the excellent customer service they provide. Management is excellent at choosing their employees and providing a good environment. The greeting workers that provide samples of products during the shopping experience is a plus point for Costco. Although the membership may be a little more pricey then Sam’s club, the products at Costco are much better in quality which is more important to me.

Would you prefer to have a membership at Costco or Sams club and why? Overall, is it better to buy in bulks?