Here are 8 reasons to believe we’re in the middle of a college tuition bubble (that’s about to burst).
1) Tuition is, and has been, increasing atdoubletriple the rate of inflation
2) Students are borrowing more than ever to pay for college
3) For profit colleges are paying homeless people to take out federal loans to enroll
4) Colleges are on a non-teaching staff hiring spree that far outpaces enrollment
5) For profit reliance on federal loans has reached an all time high
6) Schools are spending on luxurious amenities to lure in more students
7) College president salaries are sky high, even in a historical economic downturn
8) The student loan problem cuts across all schools, for profit and nonprofit
hose fault is this?
The federal government for making student loans non dischargeable in bankruptcy and loosening lending standards? S
Whose fault is this?
The federal government for making student loans non dischargeable in bankruptcy and loosening lending standards? State governments for refusing to directly fund higher education? Schools for taking advantage of students and relying too much on tuition increases? Lenders for handing out student loans like candy? Students for borrowing money like there’s no tomorrow?
Read more at nakedlaw.avvo.comOne thing is for sure, things cannot continue as they are, regardless of how we got to this point. The housing bubble gave America a hard lesson in what happens when loose credit leads to unsustainable prices. But unlike the housing bubble, in which foreclosure and bankruptcy allowed people to have a fresh start, the college tuition bubble will haunt young people for life unless bankruptcy laws change.
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