The Louisiana libertarian think-tank The Pelican Institute rounds-up the evidence that we’re experiencing a higher education bubble:
Concurrently, students are defaulting at an alarming rate: 25 percent of all government loans default, 30 percent of community college loans default, 40 percent of two-year college loans default, and for-profit schools have a 43 percent default rate.
Although student loans are defaulting faster than home loans at the height of the housing crisis, a 2005 decree from the Bush Administration stated that student loan debt could not be dissolved through bankruptcy proceedings. The only other scenario where this “no-escape” clause exists is debt from criminal acts and debt from fraud.
The Pelican Post: Higher Education: The Next Asset Bubble?
Via Andrew McAfee, who also points out an important question: what would a higher education bubble bust actually look like?
A bit more on the decline of value of a university degree here and Pete Thiel’s case is here.
From http://technoccult.net/archives/2011/04/26/evidence-of-a-higher-education-bubble/