Sun, Apr 24, 2011 in News by admin, Comments Off
In the debate sparked by Peter Thielâ€™s â€œ20 Under 20 Fellowshipâ€ (which pays bright students to drop out of college), one fact stands out: the cost of U.S. post-secondary education is spiraling upward, out of control. Thiel calls this a â€œbubble,â€ similar to the sub-prime mortgage crisis, where hopeful property owners over-leveraged themselves to lay claim to a coveted piece of the American dream: home ownership.
Higher education is another piece of this dream, offering a chance at social advancement and the potential for a high return on investment. During the sub-prime crisis, brokers financed home sales on the belief assets would appreciate. A similar situation is brewing on U.S college campuses, where institutions extract high tuitions from consumers in exchange for degrees and credentials that are thought to be like homesâ€”assets that will always appreciate in value.
An investment in college education has historically been a smart bet. However, in the same way sub-prime housing models didnâ€™t accommodate for potential price falls, the belief that the value of a college degree will always appreciate is potentially flawed. And, if the value of a degree stagnates while its price tag soars, our higher education system will become unsustainable. Â Some are going so far as to claim that some university degrees already lead to a negative return on investment.
Read this article:
Higher Educationâ€™s Toughest Test