College is a scam — Let’s make some money off it. Debt creates a generation of indentured servants.

Marketwatch ^ | 05/26/2011 | James Altucher

[SeekAndFind]

We can’t deny it anymore: college is a scam and a bubble (see the reasons why below). But I’m the first to admit it’s going to take years for that bubble to burst. And while college tuitions are still skyrocketing and student-loan debt is creating a generation of indentured servants, we might as well benefit from it

Many stocks will continue to go up from the multi-decade college bubble, even as it eventually bursts: The Washington Post Co. , which owns Stanley Kaplan, gets all of its earnings from the education side of its business. Blackboard , which is the firepower underneath online course management. Google , which has all the knowledge of the world at your fingertips and also is trying to get into the online course management game. Apple , because the increase in MacBook Air sales is due to more colleges buying them for their labs, and probably a basket of the cheaper online education schools like APOL , etc.

Student loan debt is now greater than credit card debt for the first time ever. After the huge debt crisis we experienced in 2008 and the financial bust in housing that ruined so many lives you would think we would be having more of a national discussion on this but we just aren’t.

¦ As a result, for the first time ever we are graduating a generation of indentured servants rather than the entrepreneurs, innovators, artists, and inventors that America is known for. I have no self-interest in this (I’m obvious not shorting colleges. That’s impossible). I just hate seeing American go down the drain.

¦ 44% of graduates in 2009 are either unemployed or hold jobs that don’t require degrees. So in other words, these millions of young people are five years behind their peers

[cantfindagoodscreenname]

Right now, having four-year degree from a reasonably decent college, with a meaningful field of study is a good back-up plan.

I think that's the key. My son who is studying biology wanted to be an actor and study theater in college and we talked him out of it. I know a lot of parents hold the view that you should encourage your child to "follow his dreams," but we took the view that if your dreams don't have a very good chance of becoming reality, don't waste your money on getting a degree in that field. He's very excited with biology and chemistry and everything he's learning now, so it seems like it all worked out.

You made many excellent points!

[jimfree]

Not all private schools are the same. My second bachelor’s is from a private institution. William Carey is a Baptist school in Hattiesburg MS. They are not into the mega-salaries for modestly qualified faculty. They have reasonable tuition rates.

[luckystarmom]

My son has been very into theater in high school. We’ve told him he should at least get a practical degree. He can minor in anything he loves.

He’s a senior in high school. We’ll see what happens next year.