https://www.yahoo.com/finance/news/mark-cuban-warns-housing-bubble-160500202.html
Buh bye degree factories
Buh bye degree factories
It's inevitable at some point there will be a cap on student loan guarantees. And when that happens you're going to see a repeat of what we saw in the housing market: when easy credit for buying or flipping a house disappeared we saw a collapse in the price housing, and we're going to see that same collapse in the price of student tuition, and that's going to lead to colleges going out of business.
and that's going to lead to colleges going out of business.
And when it does happen, and it will, get ready for the media to start boo-hooing over it and showing all kinds of sob stories, which will in-turn force the federal government to bail the schools out.
Does this mean that universities are going to have to stop building townhouses for their students to live in (versus regular dormitories)? Could this possibly spell the end of $200 textbooks with a new edition printed each year so that your edition is useless after a year?
Those very two things you mentioned have happened at the university that my daughter attends. The 'townhouses' cost 2.5 times the price per semester that the dorms cost.
It is getting out of hand and sets the students up for even more disappointment when they graduate and have to live in their parents house or a sh!tty apartment because they are paying off those townhouse for 20 years.
Here is a great idea, let's teach our kids responsibility by making having them drown in debt as the first "adult" thing they do after stepping out of the family cocoon. That should work out marvelously!
Ship good middle class jobs out for decades: check
Tell people they have to go to college and get some kind of a degree or fail: check
Lend them insane amounts of money for said worthless degrees: check
System fail: check
We can send everyone in the US to college and we will end up without most educated McDonalds employees in the world. We reap what we sow.
People who used to get good paying jobs in the US and now can't are going to college when they have no ability to be there. Waste of resources on all levels, but what else are they supposed to do now? Their choices of years past have been stripped out from under our noses while telling us that we will be better for it. Sure thing there skippy!
Does this mean that universities are going to have to stop building townhouses for their students to live in (versus regular dormitories)? Could this possibly spell the end of $200 textbooks with a new edition printed each year so that your edition is useless after a year?
My daughters finding this out. Freshman at a state school. First year cost right at 16k, luckily she got scholarships covering up to 10k. 5500k had to be a student loan. Wouldn't have been that high, if the school didnt require freshman to mandatory buy meal plans and such. That totaled about 5k. So after this year she shouldn't have to take out a loan. No, daddy wasn't paying and I make her work a job. Great thing is she is getting a Bachelor in Nursing and has a 4.0 gpa, so she has been hitting the scholarships that just opened up hard.
She could have gotten an associates in nursing in 2 years, then had a job immediately making somewhere around $50k. Difference in pay for bachelor's degree vs. associates degree is almost zero. There are tons of RN to BSN programs out there that are quite affordable. With the pay after 2 years, it works out better in the long run, unless she plans to continue on for her MSN as a nurse practitioner or some other specialty. But some master's, such as healthcare administration, are almost useless unless you've already got your foot in the door and work your way up.
As long as taxpayers keep backing up student loans, the loans will keep getting bigger, and the cost of college will keep rising at hyper inflationary rates.
I predict million dollar college degrees in the future.
I hope the party continues long as possible. More than half of our revenue comes from colleges and universities. If you can't beat them, join them and profit.
It will collapse before then.