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higher education
graduation day
federal governments
higher paying jobs
bloating
student loans
Next Bubble To Burst? Higher Education!
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Next Bubble To Burst? Higher Education!

The next big financial institution to burst its bubble is Higher Education, they are slowly out pricing education to all Americans. Tuition is growing faster then the average household and also faster then inflation itself. For the average American student it has gotten 4 times more expensive to attend college then it was over 10 years ago. The average graduate upon graduation day is $26,000 in debt with there student loans. At the rate things are going now the student could be paying on this loan for the rest of his life. People over 60 years old are holding a $36 billion debt right now.

The colleges think that the cost the students are paying is leading to a life with higher paying jobs, but in reality there are no higher paying jobs for the students when they graduate. The statistics show that out all of the colleges in America there has been a 41% drop in the enrollments last fall.

With the shrinking of the student body admissions assumed it was due to marketing the college better, so they are hiring CMOs to help build each of there brands. With these tactics it will be only a short time fix to there problem. But if they transformed there business model with a better approach, it would be better for the students,colleges and also for the nation as a whole.

With the bloating of the administrative body of the colleges they have out numbered the researchers and instructors by far. They get hundreds of billions of dollars each year for there budget and most of this money goes to the administrative body of said institution. The instructional spending per student has risen 39%, compared to the administrative branch of the colleges which has gone up by 66% since the late 90's.

Another reason they get away with these bureaucracies to favor the administrators is that what the students pay is only a fraction of what runs the college. With most of there money comes from the state and federal governments, as well as private donations from alumni. this causes an influx of administrators and in turn shrinks the professors. this also means less then 40% of the students are actually taught by regular professors, while the rest are taught by adjuncts, assistants and instructors, going against there core mission in teaching students.

While state and federal governments are trying to trim there fatty budgets, money going to the universities and colleges will be cut back. Then the institutions and students will be looking at the worth of higher education. The education bubble has been growing for decades and it about to burst, this is why the student debt is not justified by the higher paying jobs.

Now the Higher Education Institutions face the reshaping that the airline industry and also the auto industry had to do to survive. If they do not there day of reckoning will come, because they need to balance the debt burden to students, the cost of education is to high, because of the lower degree value in this struggling economy.


Street Talk

Yes it does

Reply
  about 9 years ago

Needs a complete make over.

Reply
  about 9 years ago
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