Savings! A “Solution” To College Debt? Or To Everything?

So with the diploma bubble showing signs of a nearing collapse, William Elliott III, an associate professor at the University of Kansas, has written an editorial stating that “Student Loans Are Not The Answer.” Instead, Elliott wants families to save for college and then pay for college out of that savings. “We’re now learning about the significant effects that savings for college have on education outcomes… Children’s savings accounts capitalize on the power of savings. All Americans Read more […]

Senate’s Gift To Potential Students: Reason Not To Enroll

Basic economics dictates that, if the government subsidizes the purchase of an item, the price of that item will rise. In the case of college education, the government has done something a bit more damaging than subsidize the purchase of tuition. It has subsidized the cost of going into debt for that tuition. But that has just changed: “U.S. senators headed home for a Fourth of July recess without passing a bill that would prevent interest rates from doubling on student loans next week, leading Read more […]

Don’t Let College Professors Tell You There Is No Diploma Bubble

The cost of college education is climbing into the heavens and the employment prospects and wage rates for college graduates are not keeping up. Many have pointed out that the student loan bubble is going to crash. No one can know when it will happen (Any formula for predicting a crash would cause economic actors who had the formula to alter their behavior and this would change the timing of the crash). But sooner or later the education industry is going to experience a decline or collapse. But Read more […]