Advice to solution of College Crisis plaguing our nations students, parents and grandparents, a trillion dollars in college debt across the country, average graduate starting their life with 25,000 in debt, you see this every day. For picking the right school to finding best aid package, well have answers this week. Advice from expert on cutting cost, and well debate new alternatives. But first we tackle the question nobody asks and everyone should. Is College Really Worth it . Joining me now, richard vetter, professor of economics at ohio university, and richard professor at new york university, author of the book, academically a drift, limited learning on college campuses, i am going to start with i will call you both richard. That is you are both professor, and richard, lets start with you. You know i was asking the question is collect worth it, the aim of money that people pay, are they getting what shea should for their when they should for their money. It is clear they are not. It is still worth it in terms of individual investment, in terms of their life course projectry. But trajectory, the prices twice of what tuition in cost are in europe. They are not getting a value for their money. Richard vetter, i want to show some numbers, here tuition skyrockets up 1100 , and health care, is gone up 600 , housing up 375 . That is a huge expense for middle class americans, where do the tuition dollars go . What are we buying for this money . A good question, increasingly, a large part of the money that we collect as universities of going for things unrelated to the core activity that universities are supposed to be involved in, a smaller percentage are going for salaries, increasing proportions going for things such administrative costs. Student services, some of home luluxurious. And some schools like subdecision of inter subsidization of intercollegiate athletics, they are not being good stewards are the money and drifting away. I dont know a college that has not gotten a new student meeting space in the last 5 years, they are buying everything. Some of the places, i am going to richard vetter, share some facts you shared with me, some institutions may for students to have their laundry done, they will allow students to drive to the college campus, to door of the class, and leave their car there and someone will park it for them, this is out of control, they will never live like this again, this is astonishing that we pay there are if. Richard, you make the point, students are studying, less, parents are paying more, how much less . I think that vetter is right about what they are spending it oamenities, student service, and the like, but another way to say it, what they are spending on is happy students. Students that are satisfied with 4 years that looks like Summer Company than what we thought of as college just a few decades ago. Summer camp, that is what were paying all this money for . I dropped off my oldest at college two weeks ago, freshman. She said this, when i dropped her off, i thought my dorm room was going to look not as nice as the room i have at home. At home she shares a bunch bed with her younger sister, at college they have dividers, spend iseparate spaces, and kits below, it is great, i would love to spend 4 years there as well. No gang showers. Look at the it is living large, the and gyms they get are out of control. Richard vetter, you see what kids get for the money circumstance this where the money should go . No. My colleague the other richard has written eloquently, majestically about learning dimensions of college ex per experience, but boion, that the beyond that the disproportion of students are not gets jobs right away. I have to ask you, richard, about your findings, have you been interviewing kids, finding out their reflects, how much are they learning . Well you know, we gave them an assessment when they started college and ended college, 36 of people done move up one point on the test, a test scored from 0 to 100. When you look at their assessment performance today, and compare it to what a typical student learned 3 or 4 decades ago, best social science estimate it is about half, amount of hours Student Spend study today about half of what students did 3 or 4 decades ago. Richard vetter, what is the solution . How do we fix the problem . I do think we may be over invested in higher education, there are some people that are going to college, probably dont belong there. For academic reasons, and for economic reasons because they are not ending up with good jobs, that is part of the problem of government financial programs, the student lone programs and so orather than helping the situation, have probably agvated it making it woarltioning worseand contributc arms race were talking about, i think we need to turn attention to, that do something about it. If you can fog a mirror, you can get money for college, that is the problem, that means that institutions can reap hikes the keep hiking tuition, and making it more expensive for middle class to ed cated their children, richard eram, what do you think. I think this same thing, if colleges are competing for 17yearold, and typical 17yearold goes on the campus tours, and they dont see the learning that shaping or not happening, instead they see the fancy new student center. The fancy gym, the new dorms, and they are making their decision based on that. And so, you know, i think we need a colleges and universities to stop competing on attracting students to those dimensioned and start competing on basic education, and rates of learning. No kidding, academic performance will go a long way. I think people, respond to the demands you make, if you dont make a lot of demands academically you will not get a lot of performance, i think that is happening . I think you are right, compare hours studying in u. S. Typical 4 year soo student to countries in europe there is only one in under that average College Student slud studiess than u. S. , and yet the education is twice cost here. Your number 45 of students after 4 year education, two years in workforce, they still dont have any performance, they are not doing what they should when it comes to functioning in the workplace. Well, again we assess the students before college, at end of college, students that scored in top quintile were 3 times less likely to be unemployed two years out than those in bottom quintile, studying hard work pays off by improving the skills and outcomes, over the longterm for the kids. Well, they need hire demands, hitchard and richard, thank you for coming on. We talked about the problem and short comings, situation, and all this week well talk about solutions, thank you for coming on tonight, really appreciate your time. Glad to be with you. Thank you. We want to know what you think, is College Worth it . Log on to gerriwillis. Com, vote on right side of the screen, and our users guide to education continues all weeklong, tomorrow, we help you pick the right school, and reveal secrets of college admissions, what are they really looking for . Tomorrow and all week on the willis report. More still to come this hour, with more, more, more, a booming housing recover with signs of slowing down, you top hear about that and urgent threat posed by antibioticstrength resistance bacteria, yuck. What is being done, results of a new report from the cdc, stay with us. vo you are a business pro. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrft. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Gerri president obama touting his signature law, a new poll usa today pewy iy pew researcg that obama is more unpopular than ever. Carry join were joined by dr. Scott. 53 firs53 now disapprove of th, why is this getting worse and worse. People are experiencing it. Well experience a one time repricing of insurance for everyone. People are also seeing employment effects, they are dropping or changing coverage, some employers are not hiring to stay under minimum mandates of the law, this will grow more unpopular. I dont think that administration thinks this will become more unpopular. Gerri it is. But you know, i think all eyes on next few weeks will be on the young people, they have to make it go. If young people dont shine up for obamacare on insurance when they open october 1, the law is going to be in real trouble. Yet some 56 of young people say they have no idea that you know they are facing a fine. If they dont get some kind of insurance, what is your expectation of how young people will cope with this . Do you think they know . Do you think they care . Do you think they will sign up . The fina almost immaterial compared to cost of the coverage, it is not a good deal in your 30s. That is not very good, if you earn 20,000 a year in at this times it wilin yourauthorities s you 100,000. It is better to pay the fine, or go uncovered. Take your chances. This policy could cost upwards are 3,000 for a Young Healthy individual in their 30s. Gerri a lot of money if you just make 30,000 a year. I think it is a big gamble whether they will sign up or not, i think you may get old and sick, they will raise the cost on the program, that is my guess . Listen to this Obama Administration talking about a soft watch in this they are trying to dial back expectations, saying, unpeople will have moneys to sign up, dont Pay Attention to the first day. What do you make of that statement . The numbers will be soft, estimates right now from wall street, analysts who look at manage Care Companies they are expecting 3 to 4 million to sign up relative to estimate of 8 billion, it will be soft, they are trying to manage expectations. I want you to talk about what obama said today, summarizing how he has done over last 5 years, everyone talking about anniversary of financial crisis. Health care costs are growing at the slowest rate in 50 years. Just two weeks from now millions of americans who have been locked out of Health Insurance because they had a preexisting condition, were sick or could not afford it, they are going to have a chance to buy qualify affordable healthcare on the private market plate. Gerri do we know that is what were getting . Not a quality care, this say throw back to old hmos. We could have ddne something for those individuals that was more affordable, and cost less money, and would have given them a better product uonly reason that Health Care Costs are going up people are not accessing heat care the economy is so bad they cannot afford to go to the doctor. Gerri he is bragging that costs are coming down because people cannot afford to buy it, if you cant get your drugs at the pharmacy or you dont visit the doctor because you cant afford it Overall National costs go down, we know that insurance premiums are rocketing higher and higher, everyone is scared about the next shoe to drop, thank you dr. Scott. Thank you. Gerri well, a threat to our health care system, over use of antibiotics. According to a new report center for american progress, policies for Disease Control centers for Disease Control, they are ramping up growth of drug resis saresistance super bugs, john roberts with details. We heard this story many time, but situation is getting worse, centers for Disease Control issuing a warning about proliferation of dangerous bacteria that are reses stan to or resistance to or immune to our powerful antibiotics, a stunning statistic every year in United States 2 Million People are made sick, by the antibiotics resistance microbes, 23,000 of them died cdc director said were facing a Health Crisis unless something it done. We talk about preant bottic era, were already in a post an antibioticser, to make sure we preserve the drugs we have for as long as we can to protect people. Reporter cdc brought together for very first time 18 most dangerous microbes, ranked them according to threat we face from them, greatest from 3 particularly nasty classes of bugs, a intestinal bacteria then a echo lyl echoly, and a e. N a horrible form of gonorrhea. According to dr. Mark siegel, not enough front line physicians are getting the message. Doctors are handing out antibiotics like candy, they are saying maybe there is a 1 chance this is a bacteria, it is a kneejerk, and patient pressure, and doctors not being properly informed. Cdc is turning up volume to get word out and encourage Drug Companies to invest more into new antibiotics before, the medicine cabinet is empty. Gerri wow, john, the economics of that, the companies they dont make a lot of moneymaking antibiotics, they dont want to do it, a double whammy, thank you, fascinating story. Thank you,. Gerri well, lawsuiter in the show, you know it later in the show it has been 5 years since Lehman Brothers collapsed, it kicked europe woed worse fins ever, where are we 5 years later. And we navigate the Housing Market as the recovery winds down, stay with us. [ male announcer ] now, taking care of things at home is just a tap away. Introducing at t digital life. Personalized Home Security and automation. [ lock clicks ]. That lets you loser to home. Thats so cool. [ male aouncer ] get 100 in instant savings when you order digital life smart security. Limited availability in select markets. But it doesnt usually work that way with health care. With unitedhealthcare, i get information on quality rated doctors, Treatment Options and cost estimates, so we can ke Better Health decisions. Thats health in numbers. Unitedhealthcare. Gerri cracks in the housing recovery, how to navigate the Housing Market without getting burned again, next. Housing, once the bright spot of the economy, not so much any more, as prizes rice, and Mortgage Rates go up too. How do you navigate the market, john berns, great to see you, i am interested some metrics people dont talk about. Talk about sales, and about prices but i saw interesting ones in paper, about multiple bids decline, people were fighting over houses, raising bids, and bidding wars, then number of lockboxes used by listing agents. Those are declining too. What do you see what you look at this marketplace . Well were clearly seeing Housing Market slowdown, but no reason to panic. When rates rose in june at the time sales were up about 22 yearoveryear. Then actually in july they were up 19 that was a lot of people getting off the fence who were afraid that rates would go higher, august, new home sales cooled about 8 yearoveryear. September will be down. Gerri what do you see for balance of the year . I think well run pretty flat the rest of the year, there is no reason to panic. There is going to be negative headlines a lots of home sellers got too greedy with asking price, that is one of the metrics are referring, to asking prices are coming down. There are fewer new Home Communities that are raising price than months ago. But still 47 raise priced last month, this does not seem like armageddon and demand supply. You know one of the problem with marketplace there was no inventory, prices go up, but not a lot of housing on the market. Would you rather be a buyer or a seller today . That is a really good question. Starting to vary a lot by market some coastal markets in particular coast of california are feeling froth net bay area too. Frothy in the bay area, you could talk about being a seller if you are timing the market. Majority of country, housing cost is in good shape, if you are somebody to will buy a home live in it for a long time the payment is what costs you over the long time i would focus on that. Gerri i know a loot of people talk a lot of people talk about the mix of buyers with investors and foreign buyers, people put down all cash. Hard to compete with that, is that going to change, say next spring . Everyone is focussing on that remember we had a Spring Market . You know, i think a lot as changed in two months we have word a lot of foreign buyers have pulled out of some of the expensive markets and moving on florida and more less expensive markets, capital is shifting, big institutions have slowed down they are buying because whole thes thesis is shot. But what i see replacing them is flippers coming in i see ads on tv to come make 30,000 a house flip, easy money. That is what scares me, we go from people making good sound fundamental investment, to cab drivers getting rich overnight. Gerri that is not a positive statement. If you were talking to someone who is buying a second home in the market, you Pay Attention to california in particular but also florida, what looks attractive now . That is a great question, the second home market has been much stronger than i would have thought, that is usually the last market to come back, we have seen like 1 the naples mart fire, and tahoe and those areas, there is a huge surge in a affluent people, top 1 , if you will, they are buying the home they want. Gerri john thank you, great stuff, great to see you. My pleasure. Gerri well coming up next. And this week marks 5 year cinemarket fell down, collapse of Lehman Brothers, and boy oh, boy have markets come a long way since then, our Financial Panel weighs in on you which put your money, 5 years later. Did you misthe market move miss the market move 33 . At od, whatever business youre in, thats the business were in. With Premium Service like one of the best ontime delivery records and a low claims ratio, we do whatever it takes to make your business our business. Od. Helping the world keep promises. How old is the oldest person youve known . We gave people a sticker and had them show us. We learned a lot of us have known someone whos lived well into their 90s. And thats a great thing. But even though were living longer, one thing that hasnt changed much is the official retirement age. The ques