[quote=Fletch]So anyone want to take a stab at the exact mechanism that pops the education bubble? How does tuition go from being high… to not.
There is so much infrastructure on college campuses these days …. whole departments which are the equivalent of granite countertops. If the bubble is to pop, what happens to these?[/quote]
Reduce federal student loan funding. It’s just like the housing bubble. The only reason you could pay for an overinflated house was because someone would loan you money. If no one could get loans and few had the cash, the prices wouldn’t have risen so high.
When I was in school back in the 80’s and 90’s at UC, tuition and fees ran under $500/quarter for the entire 5 years I was there. Within two years of me leaving, it had tripled to almost $1500. Now it’s probably 3x that again.
When I graduated I had WELL under $10k in student loan debt for 5 years of school. I borrowed as little money as I could I worked to pay for the rest as I went. That whole concept seems to be a little gauche these days.
