From The ChronÂiÂcle of HighÂer EduÂcaÂtion:
Is it posÂsiÂble that highÂer eduÂcaÂtion might be the next bubÂble to burst? Some earÂly warnÂings sugÂgest that it could be.
With tuitions, fees, and room and board at dozens of colÂleges now reachÂing $50,000 a year, the abilÂiÂty to susÂtain priÂvate highÂer eduÂcaÂtion for all but the very well-heeled is quesÂtionÂable. AccordÂing to the NationÂal CenÂter for PubÂlic PolÂiÂcy and HighÂer EduÂcaÂtion, over the past 25 years, averÂage colÂlege tuition and fees have risen by 440 perÂcent — more than four times the rate of inflaÂtion and almost twice the rate of medÂical care. Patrick M. Callan, the cenÂter’s presÂiÂdent, has warned that low-income stuÂdents will find colÂlege unafÂfordÂable.
MeanÂwhile, the midÂdle class, which has paid for highÂer eduÂcaÂtion in the past mainÂly by takÂing out loans, may now be preÂcludÂed from doing so as the priÂvate stuÂdent-loan marÂket has all but dried up. In addiÂtion, endowÂment cushÂions that allowed colÂleges to engage in steep tuition disÂcountÂing are gone. Declines in housÂing valÂuÂaÂtions are makÂing it difÂfiÂcult for famÂiÂlies to rely on home-equiÂty loans for colÂlege financÂing. Even when the equiÂty is there, parÂents are relucÂtant to furÂther leverÂage themÂselves into a future where job secuÂriÂty is uncerÂtain.
Is this more doom and gloomÂing? Or is this someÂthing to worÂry about? Your thoughts?
via Andrew SulÂliÂvan’s DaiÂly Dish