Here are three of the week’s top financial news, gathered from the web:
A master’s degree in debt
“Elite universities have awarded thousands of master’s degrees that don’t provide graduates with enough career income to start paying off their federal student loans,” Melissa Korn and Andrea Fuller told The Wall Street Journal. The most extreme example is the film program at Columbia University, whose students graduated with a median debt of $ 181,000. “Two years after graduating, half of borrowers were earning less than $ 30,000 per year,” according to data from the Department of Education. In the 2020-2021 academic year, graduate students will have borrowed as much as first-time undergraduates. “Free flowing federal loan money” has benefited universities the most with “a legacy branding that allows them to say, in effect, that their degrees are worth what they charge.”
Planet of the Apes’
The AMC movie chain has abandoned efforts to issue 25 million new shares after the plan sparked outrage from retail investors on social media, Thornton McEnery told Market watch. Retail fans of the stock, who sometimes call themselves “monkeys,” are “now expected to own around 80% of the company’s stock,” which has skyrocketed in recent weeks. AMC, which has been a favorite of “memes stocks” on forums like Reddit, planned to sell the stock to pay off its debt. But the prospect of diluting the holdings of existing shareholders did not appeal to its investors. CEO Adam Aron, “who has become accustomed to engaging directly” with investors on Twitter, posted a photo of the words “I see you, I hear you, I like you.”
No theft and no refund
Travelers find it difficult to use discounts and vouchers for flights canceled last year, Eric Taub told The New York Times. Most airlines and travel agencies provided refunds or covered cancellation costs with credits after countries started closing borders. But with the easing of restrictions, many travelers “face frustrating delays in changing flight bookings, and even outright refusals by travel agencies to honor” these credits. Meanwhile, many travelers who have opted for refunds have yet to get them. A passenger, who owed a refund of $ 4,500 for a canceled Aer Lingus flight in February 2020, was still waiting for his money this month – and Orbitz, his online travel agent, said that due to a problem computer, she might not get it until late 2021. (Orbitz issued the refund after a reporter called.)
This article first appeared in the latest issue of The week magazine. If you want to read more, you can try six risk-free issues of the magazine. here.