Higher Ed: the next bubble?

That’s the idea put forth by Economist blogger Schumpeter:

[PayPal Founder Peter] Thiel believes that higher education fills all the criteria for a bubble: tuition costs are too high, debt loads are too onerous, and there is mounting evidence that the rewards are over-rated. Add to this the fact that politicians are doing everything they can to expand the supply of higher education (reasoning that the “jobs of the future” require college degrees), much as they did everything that they could to expand the supply of “affordable” housing, and it is hard to see how we can escape disaster.

Schumpeter argues that the only reason we haven’t felt the effects yet is that schools are filling their ranks by taking on weaker candidates, but as the gap continues to grow between the cost and the potential return of college and graduate school, enrollments will begin to plummet.  The blogger goes on to raise a number of interesting issues about the state of higher education.  You can read the full post here.

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