By Jessica Kelmon, Associate Editor
Remember when people debated the housing bubble? As a renter, it didn’t seem all that pertinent to me. Now we know that large-scale overvaluing, overconfidence, and under-evaluating touches us all. But when people (read: the media, 99% movement activists, and, famously, venture capitalist/entrepreneur Peter Thiel) talk about an education bubble, they’re comparing higher education to a free market system.
The concepts aren’t quite parallel in my mind, but a new infographic series by Education News makes a strong case for the analogy – and paints a scary picture of a system that’s out of control.
Do you see the parallel between high levels of mortgage borrowing to become homeowners and high levels of student borrowing to pay skyrocketing (up 439% in the past 30 years) college costs? And if so, do you think that it constitutes an education bubble that could pop? What might that mean: a significant drop in kids going to college, kids delaying college until they can pay cash rather than borrowing, a shortage of young qualified professionals, more trade schools?
With 20/20 hindsight, quite a few people probably wouldn’t have gone for the mortgages they did in ’05 - ’08. So if you’re a parent and you want your child to go to college, what, if anything, do you think we can or should do now (planning, saving, outsmarting the system, etc.) to best hedge our bets against an education bubble?