I suspect that most who called for all the federal aid to “education” had no idea what they were initially proposing c. 1958-1966.
The gravy train can’t last forever.
What do you expect when kids sign and agree to pay and then don’t do it?
He is correct.
One major this recovery is different, is that many would be home buyers, and family starters are held back by these loans. They cannot borrow to buy homes, and afraid that children will bankrupt them.
The root cause, is not Obama for a change; but he did nothing to solve it. Democrats originate much of their power from the education industry.
Such a crash would be a good thing for this country.
The end of cheap money and tuition decline will mean education will become focused on the practical needs of real people. Bubble money (Gov’t funding and debt) are the main drivers of political indoctrination on college campuses. Top research institutions and highly competitive schools with deep pockets will not go away.
Let’s hope it happens soon.
Of course when you go to a college campus the opulence is unbelievable.
My niece had a nicer dorm room than the first several apartments that I had. Most colleges have massive student life programs with climbing walls, workout rooms and natatoriums better than any sport club or country club, even the most expensive in the country.
College has very little to do with learning anymore. It is a four year party.
The federal government is always involved and, in effect, creates bubbles with their involvement - price increases are the outcome - cars, houses, student loans, solar crap - it’s always more than obvious from day one. Federal government subsidies will always cause something to blow up down the road. But, a lot of money is made - by a few people - along the way.
We sure seem screwed in America.
Oh, the humanity!
The university professors are the high priests of the Democrat Party. They are charged with teaching others the doctrine of the Democrat Party. They are used to the good life now. You can’t defund the high priests and hold the Democrat Party religion together.
As the parent of a rising college junior, I say pop the bubble. My daughter is a double engineering major at a top school. She works. I work. She saves. I save. We pay 100% of all her tuition and fees in cash. CASH! No strings attached. AND, this summer, she is working at an internship and making a higher wage than many of the adults I know. No, it’s not easy, but it can be done. I’m tired of the blood suckers out there who game the system, study crap, and try to tempt her away from doing the right things. < rant off >
The student loan scam/bubble will exist as long as there are taxpayers.
How does one short this market?
Just keep paying your taxes. The college industry will need a bail out.
The noticeable tuition and real estate price collapses will come with the bond collapses and austerity programs ahead (government layoffs, pension haircuts, etc.).
Wow, he’s so smart. How does he know so much?