June 30, 2012
HIGHER EDUCATION BUBBLE UPDATE: Grants, Loans Fuel Higher Education Bubble. “Students are paying less and less of direct college costs, relying more on government grants and loans. That has encouraged universities to jack up tuition expenses, fueling a vicious circle reminiscent of the housing bubble. U.S. universities charged students $190 billion in 2001-02 for tuition, fees, room and board and more, according to data from Sallie Mae. By 2010-11 that had more than doubled to $410 billion. Even after adjusting for inflation, student charges shot up 72%.”
Say, did I mention I’ve got a book out on this subject?