Blended Learning, Domestic, Ethics, For-Profit, Infographics, Investors, Legislation, Required, Student Loans, Students - Written by Wired Academic on Thursday, February 2, 2012 5:00 - 0 Comments
Infographic: Is College And Higher Education The Next Bubble Waiting To Pop?
In May 2011, Peter Thiel — PayPal co-founder, venture capitalist, and a member of Facebook’s board of directors—predicted that higher education would be the next bubble to burst. According to Thiel, higher education in America bears the same markings as the technology and housing bubbles that preceded it: unbridled investment, wildly overvalued assets, and a lower rate of return than in years past. Like all economic bubbles, Thiel argues that higher education is destined for disaster. Thiel’s remarks have generated a great deal of controversy: comparing universities and colleges to commercial markets seems simply preposterous to some. The idea, however, resonates with economists. Like real estate and technology, higher education is a major investment; the average education at a 4-year private college costs well over $100,000 in total.
Any major market requiring substantial investment can be analyzed in a similar framework: economic bubbles form when an investment becomes dramatically overvalued, and then burst when this unsustainable pattern reaches critical mass. At that point, investors realize they have paid too much for too little. According to Thiel, most middle-class parents in America aspire to send their children to college. The media frenzy surrounding the jobs crisis for recent graduates implies that a college degree may not generate the same economic returns it once did. Investors, whether they are private banks or government-based lending groups, may be wondering how much they have overvalued higher education in America. When viewed through this lens, the higher education market has all the makings of an economic bubble on the verge of collapse.
This presentation by Education News gives you a more in-depth look at the economic state of America’s higher education system. The data that economists have gathered—from skyrocketing tuition costs to the astonishing size of student loan debt—will tell you everything you need to know about this growing economic concern. Higher education may not be in a state of crisis yet, but it is an issue that deserves a closer look. Watch the video, read the infographics, and then decide for yourself: is higher education the next big bubble?
Leave a Reply
We welcome Tips & Pitches
Latest WA Original Features
The Pulitzer Prize winning investigation newsroom digs into for-profit education.
- Interview: UoPeople Founder Shai Reshef On Edu Tech, Free Tuition & P2P Learning
- Cheating in School— How the Digital Age Affects Attitudes About Plagiarism [Infographic]
- U of Phoenix: Raises tuition, Enrollment drops, Still Making Plenty of Cash
- Guest Column from Hansoo Lee of Magoosh.com: SAT Scores are Falling – Now What?
- Edublog Award Winners For Mobile App, Web Tool, Wiki Tool
MARKET INTRADAY SNAPSHOT
- Education & Tech Companies We Follow
Cost of Education, Domestic, Education Quality, Ethics, For-Profit, Regulatory, Required, Students, University & College - Mar 11, 2012 21:17 - 0 Comments
More In For-Profit
- Heard: MOOCs Growing From Stanford to Georgia Tech to MIT to Udacity and Udemy
- Heard: California Applies Headlock, Begins Clamp Down On For-Profit Colleges
- Heard: Capella University On The Ropes But Planning For A Comeback In Round 4
- Hungry Hippos: For-Profits Gobble Up Half of Military Education Benefits
- Researchers Find Students At For-Profit Colleges More Likely To Be Unemployed
Blended Learning, Domestic, Elementary / Primary / Junior, Flipped Classrooms, High school / Secondary 2, International, Open Source Education, Required, School teachers, Startups, Students, Technology - Mar 12, 2012 19:04 - 0 Comments
More In Technology
- Opinion: Online Tutoring Disrupting Traditional Tutor Model, But Expanding The Tutor Industry
- The “Mathlash”: Mathmeticians Strike Back Against Silicon Valley’s Foray Into Math Edu
- Shantanu Sinha of Khan Academy Explains The Gamification Approach of Khan
- Fast Company Ranks The 10 Most Innovative Education Companies
- Must See: Interactive Tour of the Universe — Online Tool for Teachers and Gawkers
Domestic, Education Quality, For-Profit, Friend, Fraud, or Fishy, Required, University & College - Feb 10, 2012 16:36 - 0 Comments
More In Friend, Fraud, or Fishy
- Infographic & Video: Is America Witnessing A Growing Education Bubble? Part II Of II
- Investigative Opinion: For-Profit Kaplan University’s $250 Million Payout To Former Executives
- Heard: Mitt Romney Takes Money From, Offers Praise To Full Sail University Leaders
- Heard: New York Attorney General Is Investigating Pearson Education – NYTimes.com
- Guest Column: A Response To Occupy Wall Street’s View Of Student Debt