8 Reasons College Tuition Is the Next Bubble to Burst
October 17, 2010
I cam across this blog entry the other day and it simply frightens me. No reason why I should not pass it along!
Here are 8 reasons to believe we’re in the middle of a college tuition bubble that’s about to burst.
1. Tuition is, and has been, increasing at double triple the rate of inflation. On average, college tuition increases at around 8 percent per year, which means the cost of college doubles every nine years. Because colleges know that students will simply borrow more money to cover tuition increases, colleges have been relying on steady tuition hikes to solve all of their money problems. If this continues a college degree will soon cost as much as a house.
2 Students are borrowing more than ever to pay for collegeThe number of college students graduating with over $25,000 in student loan debt has tripled in the past decade alone. Today, 66% of students borrow to pay for college, taking on an average of $23,165 in debt. Twelve years ago, 58% borrowed to pay for college, taking on only $13,172 in debt.