10 29 13 lantern

Page 1

Tuesday October 29, 2013 year: 133 No. 96

the student voice of

The Ohio State University

www.thelantern.com

thelantern Students react to lack of info on OSU’s $50M investment

sports

KAYLA BYLER Managing editor of design byler.18@osu.edu

6A

Endless motivation

Carlos Hyde said the Buckeyes will remain focused this week despite playing a team at the bottom of the B1G.

[ a+e ]

Ohio State recently invested tens of millions of dollars into a venture capital firm, though many details of the deal remain unclear. OSU invested roughly $50 million into Drive Capital, which was launched by Mark Kvamme earlier this year, according to reports by The Cleveland Plain Dealer. Venture capital firms invest money into eary-stage startup companies. These type of investments are typically seen as high-risk, high-reward. Questions related to the investment, including where the funds for the investment came from and what oversights were put in place, remain unanswered by university officials. OSU’s Office of Business and Finance referred The Lantern to assistant vice president for media and public relations Gayle Saunders. The Lantern filed a public records request for the contract between OSU and Drive Capital Thursday.

materials science and engineering, Saunders said Monday the public agreed. records request is being processed, “They charge us a bunch of (tuition) however, she declined any additional money, and then they have to get rid of comments or questions related to the it somehow,” Krill said. “At least it was investment. an investment,” and has the opportunity Some OSU students were unconto pay off, she added. cerned with the university’s lack of Drive Capital was co-founded by transparency surrounding the investKvamme and Chris Olsen. Both were ment though. previously Emily partners Swingle, a It is my hope that such at Sequoia fourth-year approaches can become Capital, a in biomedical a model for other higher venture capital engineereducation institutions to firm based in ing, said she California that trusts univerfollow. has backed sity officials E. Gordon Gee companies to make good OSU president emeritus such as Apple, investments. Instagram and “There Google. Olsen are people in is also a native of Cincinnati. charge of the university and they’re in Jenny King, a second-year in speech charge for a reason,” she said. and hearing science, said Kvamme’s Others, though, were concerned tenured background in venture capital is with where the money for the investcomforting. ment came from. King said Kvamme appears to be “If we’re paying for it (with tuition “reliable” because of his previous investmoney), then it’s silly,” said Tori Smith, ments with applications like Instagram, a second-year in nursing. adding that a lack of transparency with Elizabeth Krill, a fourth-year in

the investment didn’t bother her. According to its website, Drive Capital “invests in innovative technology, health care and consumer companies in the Midwest.” Representatives from Drive Capital did not immediately respond to request for comment from The Lantern via email Monday. Kvamme acknowledged that an agreement exists between OSU and Drive Capital in an email to The Plain Dealer. “We believe in the opportunity in Ohio and the Midwest to create worldchanging technology companies. It is important that people here understand our goals and objectives for the region,” he said in the email. The company has so far invested in Roadtrippers, a Web-based road trip planning platform, and CrossChx, a company specializing in preventing medical identity fraud. Some students said it was smart for OSU to invest in Drive Capital, a firm that invests money into small businesses.

continued as Investment on 3A

US-China relations ‘key to peace and stability’ DANIEL BENDTSEN Lantern reporter bendtsen.1@osu.edu

4B

A Pretty Reckless show

Lead singer of The Pretty Reckless and former ‘Gossip Girl’ star, Taylor Momsen, is set to bring her band to Columbus.

campus

As the relationship between China and the U.S. evolves, how the two will work together on a global scale is becoming increasingly important. “As we look to the future, the key question is ‘Can the U.S. and China work together to solve the world’s important challenges despite different economic systems and divergent views on such matters as democracy, religious freedom, civil liberties and the rule of law?’” former Secretary of State Madeleine Albright said during an event about the U.S.-China relationship Monday. “In my view, this is certainly possible, so long as we recognize our disagreements and core differences with maturity, confront our challenges directly, and have leaders on both sides that are committed to this relationship.” The seventh annual China Town Hall, during which Ohio State and 65 other venues hosted local speakers Monday in a two-hour event, featured a webcast discussion on the subject of U.S.-China relations between Albright in Washington, D.C., and Stephen Orlins, president of the National Committee on U.S.-China Relations. “U.S.-China relations are the defining relationship of the 21st century, and getting that relationship right is the key to peace and stability throughout the world,” Orlins said. On OSU’s campus, a few dozen students and others gathered at the Mershon Center for International Security Studies to watch the discussion and hear from former American diplomat Lloyd Neighbors, who spoke about his time in China before fielding questions from the audience. Compared to the fear some Americans have of

RYAN ROBEY / For The Lantern

Lloyd Neighbors, former minister counselor for Public Affairs at the US Embassy in Beijing, spoke at the Mershon Center for International Security Studies Oct. 28 about the time he spent working in China. China’s swift economic rise, Neighbors spoke of the relationship in a much more lighthearted tone, keeping the audience engaged with quips and recollections about the challenges of diplomacy between the two world powers. Neighbors recounted his four-decade tenure in China that left him with a catalogue of behind-thescenes stories about U.S.-China affairs, like former U.S. President Ronald Reagan’s propensity for

rambling on with personal anecdotes while ambassadors tried to brief him about the country. Despite concern from the public, Neighbors told The Lantern before the event that China’s rise is unlikely to create major economic problems for the U.S. “It’s possible, but trade partners always have all

continued as China on 3A

College degrees help secure jobs, add to financial burdens

2A

Buckeyes reaching out

OSU student volunteers who work with juvenile delinquents were recently awarded for their efforts.

weather high 62 low 48 partly cloudy

W TH F SA

66/58

showers

64/53

showers

61/42

partly cloudy

52/34

showers www.weather.com

BROOKE SAYRE Lantern reporter sayre.128@osu.edu The unemployment rate for students graduating with a bachelor’s degree remains low and the certification comes with a better paycheck, however student debt continues to anchor those graduates down. Some Ohio State students and administrators, though, think a college education is worth it despite unanswered questions about affordability and access. According to the Institute of Education Sciences, young adults with higher education corresponded with higher average earnings in 2011 data. About 70 percent of the class of 2013, however, graduated with debt, according to a study done by Fidelity Investments. At OSU’s Columbus campus, about 58 percent of 2011 graduates had student debt, according to the most recent data from the Institute for College Access and Success, a nonprofit independent research organization. Higher pay and lower unemployment While the majority of students are graduating with debt, that they attended college at all often helps them find a job. In 2012, 8.3 percent of individuals with only a high school diploma were unemployed, according to

$50,000

50,000

Unemployment rate

4.5 percent

40,000 30,000

Bachelor’s degree

$29,950

8.3 percent

20,000

High school diploma

10,000

Median pay with a high school diploma source: reporting

Median pay with a Bachelor’s degree or higher

Bureau of Labor Statistics employment projections. Those with a bachelor’s degree, though, faced a 4.5 percent unemployment rate. Some OSU students said they think the reduced unemployment rate makes college worth it. Olivia Whitman, a second-year in computer science and engineering, said the nearly 4 percent difference in unemployment between having a high school degree and having an undergraduate degree can effect a lot of people, regardless of debt. “Taking on a large amount of debt may stop people (from going to college),” Whitman said. The long-term benefits were something that Spencer Carli, a

KAYLA ZAMARY / Design editor second-year in computer science and engineering, said he took into consideration. “In the long-term, (debt can) pay itself off,” Carli said. “Assuming you can get a job and the job can aid you and it falls in line with what you’re interested in.” In September, the national unemployment rate of workers over the age of 16 was 7.2 percent, the lowest unemployment rate since late 2008, according to the BLS unemployment rate. College graduates are not only more likely to be able to find jobs, but also more likely to find higher-paying ones. The study by the Institute of Education Sciences found that young

adults, ages 25 to 34, with a high school diploma who were employed full time earned a median annual income of $29,950, while those with a bachelor’s degree or higher earned a median pay of $50,000. Carli said, though, even with just a high school diploma he was able to get a job working with a skill-based web design company while he attends OSU. “(I came to college) just to further my understanding of the complex side, to dive deeper,” Carli said. “If the general interest doesn’t require a college degree, (the degree is) not important.” Student debt Though education correlates with a higher salary, paying for that education can bind students with debt that will take a toll on their future bank accounts. For those college student who graduate with debt, the average debt is $35,200, including federal, state and private loans, in addition to money borrowed from family members and added up from credit cards, according to the Fidelity study. Comparatively, the average student debt of Ohio State main campus graduates was about $24,840 in 2011, according to the study by the Institute for College Access and Success.

continued as Degrees on 3A 1A


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.