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Depends on your measuring stick. Cheating themselves out of an education? Yep. Cheating themselves into a credential -> job - the status / remuneration of which is almost entirely divorced from the quality of the education, being aligned rather with the name of the organization on the diploma.

Former (second-generation) college professor, here. I find it almost impossible to be cynical enough about the US education industry.

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The fact that it's an industry is alone enough to cry.
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> If students cheat they hurt only themselves

This statement is more defensible after removing “only”. If it “only” hurt the cheaters, there would be no need to police cheating at all.

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Well from a certain perspective they are also hurting the schools reputation, the programs reputation, and ultimately their fellow students.
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The thing is, when colleges don't test students' ability properly before issuing a credential, employers start testing job applicants' ability after they've received it.

And they'll do it with all the 'unnecessarily high stakes' and 'risk of unconscious bias' and 'not truly representative' problems that written exams have; and a bunch of extra problems too.

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This is untrue. Students who graduate without actually absorbing knowledge as laid out in the curriculum devalue the degree when they show up in the workforce lacking that knowledge. This is part of why new grads are undesirable job candidates, there’s a chance you are paying a higher wage for someone who may not have learned anything.
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They hurt other students who worked hard for the degree. They hurt the reputation of the school and the utility of the degree as a credential.
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When i attended university (almost a decade ago i guess, time flies) we didn't have a single exam on the computer. All exams were on paper or oral, most were without notes too. Computer science does not require computers.
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This is usually true, but it is also true that some classes are graded "on a curve" and so grade inflation could hurt people who are honestly doing work. Also, cheaters tend to suck all the air out of a room. For example, my I.T. instructor designed a really nice oral quiz slide-show for the entire classroom. I found it a few hours before the class, I watched it in its entirety, and then when he tried to run it live, I spoilered all the answers before any other student could answer. I wasn't strictly cheating, but I wasn't being fair to my classmates' learning process, either.
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