HIGHER EDUCATION BUBBLE UPDATE: Sometimes grad school flunks the cost-benefit test.

You know the $1 trillion in student loan borrowing that is of concern to many of us? About 40 percent comes from loans to finance graduate and professional degrees, according to the report.

In looking at data from the Department of Education, Delisle found that the median level of indebtedness for a borrower with a master of arts was $59,000 in 2012, up from $38,000 in 2004. And that’s after adjusting for inflation. There were similar trends for other master’s degrees, such as in science or education. . . .

There are plenty of studies that show that people with advanced degrees have higher earning potential. But lost in this optimistic message are the people who get a degree and the debt but not a significant pay increase. Or the debt takes up such a high percentage of any net salary bumps that it is years before the degree-holder sees a return.

Here’s a key observation from Delisle’s report: Students pursuing a master’s or professional degree already have an undergraduate degree, and therefore they “should be far more informed consumers.”

Yet often they are not.

Yes, if they were, they higher education bubble would be bursting a lot faster.