I was in Ann Arbor recently, for a bankruptcy hearing.
On paying to leave the parking structure, I noticed the young lady had a thick book she was reading.
I asked: “Studying hard?”
She smiled wanly and said: “No, I have my bachelor’s degree.”
I said: “At least you have a job.”
None of my business how much she spent, or borrowed in student loans, or her parents spent, or borrowed in student loans, for that diploma.
One university, Nevada Las Vegas, is on the edge of going broke anyway, even with high tuition subsidized by the government student loans.
Glenn Reynolds on Instapundit, one of my favorite blogs, frequently deals with the higher education bubble.
LBJ said everyone had the right to a college education.
Well, of course, he did not say: at his or her own expense.
So, the government got into the business of subsidizing said college educations, with low interest student loans and other programs.
Basic economics, if you subsidize something, you get more of it.
Colleges were only too happy to go along, and had no problem raising their prices way more than inflation for the last decades, because Uncle Sam loan programs and state equivalents kept subsidizing the students.
Combined with the relentless propaganda about how much a college education is worth.
Everyone knew it was a good investment.
Not many questioned the math, no one said don’t borrow more than x amount in student loans to get that degree.
Now the job market has tightened considerably.
It is difficult for tens of thousands of graduates to get jobs that generate enough income for them to pay off their student loans, and live.
It puts things like buying a house totally out of reach.
Are College Diplomas Worth The Money?