The Tuition Bubble

Carpe Diem argues that there is a bubble in the cost of higher education, and the bubble will soon burst. He posts a dramatic chart showing the rapidly growing divergence of the cost of a higher education and the CPI AND housing over the past thirty years.

This author believes that the bubble in government debt will burst first but given that government debt partially helps support the spiraling costs of education through support for ballooning student debt, the timing may be close enough. Note well that rising home equity helped many middle-class families scrape together enough money to pay for college for their kids – that prop will not likely return anytime soon.

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