Author Topic: Analysis: Is student loan, education bubble next?  (Read 2056 times)

Offline walkstall

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Analysis: Is student loan, education bubble next?
« on: November 06, 2011, 09:33:27 AM »
 
I think the bubble has popped, they just can not see it yet!
 
First the dot.coms popped, then mortgages. Are student loans and higher education the next bubble, the latest investment craze inflating on borrowed money and misplaced faith it can never go bad?
 
Some experts have raised the possibility. Last summer, Moody's Analytics pronounced fears of an education spending bubble "not without merit." Last spring, investor and PayPal founder Peter Thiel called attention to his claims of an education bubble by awarding two dozen young entrepreneurs $100,000 each NOT to attend college.
 
Recent weeks have seen another spate of "bubble" headlines β€” student loan defaults up, tuition rising another 8.3 percent this year and finally, out Thursday, a new report estimating that average student debt for borrowers from the college class of 2010 has passed $25,000. And all that on top of a multi-year slump in the job-market for new college graduates.
 
 
more @
http://xfinity.comcast.net/articles/news-national/20111106/US.Education.Bubble.ANALYSIS/
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Online Solar

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Re: Analysis: Is student loan, education bubble next?
« Reply #1 on: November 06, 2011, 11:08:06 AM »
What I see happening is people abandoning college pursuits altogether and turning towards trade schools, things like auto repair specialists and other fields.
Employers in specialized fields will quickly hire a vocationally trained student over someone with a masters degree, they want someone that can go straight to work.

A masters is no guarantee of a job, but a vocational school can place nearly 80% of the graduating class, lets see a college make those claims.
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Offline Dan

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Re: Analysis: Is student loan, education bubble next?
« Reply #2 on: November 07, 2011, 09:50:45 AM »
This is an absolute bubble. I don't see it holding much longer. What a-hole spends 100K for an education that prepares him for a 30-35K per year job? That's why all of these dirty hippies want the taxpayers to pay off the loans they took out to go to college.
 
I think you will see a lot more people spending thier first two years at a community college. Our community college system is actually pretty darned good and it is the best post secondary educational value out there. People can get their english and math and science out of the way cheaply and leave school with half the debt and that's assuming no one reduces the costs at our bloated universities.
 
You do that, and the universities will crumble. Their bread and butter is charging kids 10K tuition per semester to get the basics out of the way. You remove that 40K per student gravy train and their entire cost structure becomes unsustainable.
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Offline Solars Toy

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Re: Analysis: Is student loan, education bubble next?
« Reply #3 on: November 09, 2011, 05:35:27 AM »
This is an absolute bubble. I don't see it holding much longer. What a-hole spends 100K for an education that prepares him for a 30-35K per year job? That's why all of these dirty hippies want the taxpayers to pay off the loans they took out to go to college.
 
I think you will see a lot more people spending thier first two years at a community college. Our community college system is actually pretty darned good and it is the best post secondary educational value out there. People can get their english and math and science out of the way cheaply and leave school with half the debt and that's assuming no one reduces the costs at our bloated universities.
 
You do that, and the universities will crumble. Their bread and butter is charging kids 10K tuition per semester to get the basics out of the way. You remove that 40K per student gravy train and their entire cost structure becomes unsustainable.

That's what my oldest did.  Got all the basics out of the way at junior college level and then went on to the university.   :)
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Offline Dan

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Re: Analysis: Is student loan, education bubble next?
« Reply #4 on: November 09, 2011, 01:37:29 PM »
That's what my oldest did.  Got all the basics out of the way at junior college level and then went on to the university.   :)

That's what I should have done. I would have had a lot more fun in my  early 20s if I wasn't paying off my student loan. But I paid all my loans off in 4 years.
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Offline taxed

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Re: Analysis: Is student loan, education bubble next?
« Reply #5 on: November 12, 2011, 10:56:48 AM »
That's what my oldest did.  Got all the basics out of the way at junior college level and then went on to the university.   :)


That's the best thing to do I think....

Offline Dan

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Re: Analysis: Is student loan, education bubble next?
« Reply #6 on: November 12, 2011, 07:01:17 PM »

That's the best thing to do I think....

Don't borrow money you can't pay back. That goes for both student loans and mortgages.
If you believe big government is the solution then you are a liberal. If you believe big government is the problem then you are a conservative.

 

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