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If the Student Loan 'Bubble' Bursts, You'll Still Be Screwed

By Vice

Let's game this out a bitRead full story

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  • Let’s challenge university leaders to right size their costs and in turn pricing so their consumers ( students) can afford it going forward.. if loans /financing not so easily available schools would need to adjust their pricing to attract their customers/students. We need to take it down a notch .

  • Steven Rodas
    Steven RodasReporter at machineByte

    Maybe instead of calling it a “bubble” we call it a “bumper car.” Being led down the road of student loan debt by way of this grand idea that higher education “is just what you do after high school” sounds awfully like a vehicle whose limits are regulated, and of which one can only escape by standing up and escaping entirely.

    Yes, we can be successful while being in debt but make no mistake we consistently feel the shadow it casts.

  • Michael Andrews
    Michael AndrewsFounder & CEO at MPA Global

    If the student loan bubble bursts then you will still have to pay off the debt with interest. My concern is that elite universities that promise the best education do so with a price tag that will keep people in debt. Even the top state universities are raising tuition and room and board beyond the reach of many families or force students to accrue massive debt.

    I would prefer an aspect from publicly funded no tuition universities like in Germany for the students and their families by adopting

    If the student loan bubble bursts then you will still have to pay off the debt with interest. My concern is that elite universities that promise the best education do so with a price tag that will keep people in debt. Even the top state universities are raising tuition and room and board beyond the reach of many families or force students to accrue massive debt.

    I would prefer an aspect from publicly funded no tuition universities like in Germany for the students and their families by adopting over a short period of time a tuition free education for in state students. Charge for room and board if you must but make it possible for students to have a viable chance in life without crushing debt.

  • Naveen Jain
    Naveen JainproFounder & CEO at Viome

    We really need to separate cost of higher education from the need of higher education. There is just no doubt that higher education sets the foundation for life to have broad knowledge and way to think, create or analyze. I do agree that we need to make higher education affordable and I believe online education with mentor/coaches could be right hybrid model for it. This type of education will be personalized and adaptive. See more here: https://www.google.com/amp/s/www.forbes.com/sites/naveenjain/2013/05/18/effective_addictive_education/amp/

  • Surprisingly, a good article from an unexpected source. It’s not what exists in the present which is a crisis. It’s a rapidly deteriorating condition, an ever steepening spiral into the abyss. As costs go up and students no longer are willing to assume this debt, enrollments will decline. As enrollments decline, institutions will raise the cost to keep their bloated fiefdoms. The next iteration of the slide is necessarily larger than the last, the rate of decay continues to increase at an increasing

    Surprisingly, a good article from an unexpected source. It’s not what exists in the present which is a crisis. It’s a rapidly deteriorating condition, an ever steepening spiral into the abyss. As costs go up and students no longer are willing to assume this debt, enrollments will decline. As enrollments decline, institutions will raise the cost to keep their bloated fiefdoms. The next iteration of the slide is necessarily larger than the last, the rate of decay continues to increase at an increasing rate.

    We stand at the edge of the abyss. The choices which keep the system from collapsing into the hole are not easy. Free college is one of the easy choices, it creates more problems than it solves.

    The question becomes will we find a handful of politicians willing to risk bringing forward a viable solution when neither party would advance it?

    Buckle up; it’s gonna be a hell of a ride...

  • I believe we will see the student loan crisis the same way that we see the mortgage-backed security crisis, today.

    Instead of bankers we will blame the U.S. Department of Education and university presidents.

  • Great article! Student loans are at all time high. As a nation, we're starting to question the inherent value of a four year university. The question is will students be able to pay off their loans and will college attendance continue to grow?

    The article misses a key point. Universities are investing billions into new infrastructure and growth. If the bubble bursts, many public institution may not be able to pay off their own depts. What happens then? This concerns everyone.

  • Free college usually cheapens the education and becomes less valuable. I have seen this repeatedly with the tribes. It also gives government more control which in turn leads to greater opportunities for corruption and bigger government. We do need some wisdom in choosing colleges and some need to go out of business. Perhaps teaching a student to work for their education would be a better alternative. We have to much “I want it right now” in us.

  • Bill L.
    Bill L. Addictions Studies

    The smart play for many traditional students today is to start duel enrollment on 11th grade, go FT to a community college for 3 years while staying at home, transfer to a well-branded school with a high GPA as a junior and in the process reduce debt by 50% with the same positive outcome.

  • Annaliese Griffin
    Annaliese Griffinreporter at Quartz

    One of the other major problems with student loans is that the system for getting grants and scholarships is often very difficult to navigate and many students, especially those who need it most, don’t have strong guidance about how to apply for the beat possible aid.

  • Kyle King
    Kyle King

    What went through my mind as I read this article was that we could use the European model, right? Not really, because the backlash on increased taxes would be huge. So then what to do?

    The higher education industry is ripe for disruption. When you have actors entering the space like Lambda School and celebs like Gary Vee, who no longer subscribe to the “educate your way to wealth” model, the clock is ticking for higher ed.

    Personally, I think it’s a good industry to disrupt. It may start with

    What went through my mind as I read this article was that we could use the European model, right? Not really, because the backlash on increased taxes would be huge. So then what to do?

    The higher education industry is ripe for disruption. When you have actors entering the space like Lambda School and celebs like Gary Vee, who no longer subscribe to the “educate your way to wealth” model, the clock is ticking for higher ed.

    Personally, I think it’s a good industry to disrupt. It may start with higher ed but the whole educational system needs to be refreshed.

  • Catherine Tannahill
    Catherine Tannahillprof, teacher

    This is well worth reading & thinking about as it impacts more than just college students.

  • Jeremy Bleam
    Jeremy BleamDriver at Tony Roni's

    The biggest SCAM in the history of the USA!

  • Erin Rey
    Erin ReySchool Counselor

    Maybe I’m not very educated on how the economics of this works but I don’t understand how student loan debt is in anyone’s best interest from an economic POV. Why colleges and universities raise costs knowing the debt crisis we’re in (myself included); we aren’t buying houses anymore, going on big trips, purchasing new cars, etc because of this problem.

  • Ivan Edwards
    Ivan Edwards

    If educational institutions were held more accountable guaranteeing students are gainfully employed with their runaway costs, then borrowers would have far more incentive to promptly pay back their loans.

  • Henry Tobias Jones
    Henry Tobias JonesEditor of Dyson on: at Dyson

    Great!

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