Saturday, November 24, 2012

Higher Education Bubble - dropouts

As the cost of college has gone up students borrow more, then the cost goes up more. Because the traffic will bear it. And the federal government is pumping harder and harder.

But what if you borrow for classes, then economic reality causes you to drop out? You have college debts, but no degree and no access to the better paying jobs.

Wall Street Journal (subscription might be required)
According to a 2011 study by the Institute for Higher Education Policy, a Washington, D.C.-based research firm, 58% of the 1.8 million borrowers whose student loans were began to be due in 2005 hadn't received a degree. Some 59% of them were delinquent on their loans or had already defaulted, compared with 38% of college graduates. The problem has almost certainly worsened since, as the recession wiped out job opportunities for less-educated workers.
The cartoon: Parker in Florida Today. Click to enlarge.

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