Unless students limit their debt burdens, choose fields of study that are in demand, and successfully complete their degrees on time, they will find themselves in worse financial positions and unable to earn the projected income that justified taking out their loans in the first place.
That is the analysis from the credit rating agency, Moody's, and Reason adds:
In August 2010 financial aid guru Mark Kantrowitz announced that student loan debt had, for the first time, surpassed credit card debt. A month later, the Department of Education announced that default rates for student loans had jumped from 4.6 percent in 2005 to 7 percent in 2008, the most recent year for which data is available. While the two announcements went largely unnoticed, some took the data points as evidence that America's next big bubble—higher education—was becoming dangerously inflated.My reaction? a big yawn!
I have been writing about the higher education bubble for more than a couple of years now! (Search for "higher education ponzi")
More from Reason:
the college industry had more in common with Detroit than the housing crisis.Seriously, tell me something new!
“These subsidies are kind of like propping up the auto industry with cash for clunkers, or the housing industry with cash for first-time buyers,” he told me last year. “We have this financial aid system that is keeping the system alive.”
When will the policymakers and the public wake up to the fact that we are overselling higher education, which benefits neither the students nor the idea of "education," and the only beneficiaries are those in the higher education business?
I am doing my part--like this recent opinion piece in the Oregonian, and this one that I hope that the Statesman Journal will publish. How about you, dear reader? (editor: what makes you think there are readers?)