HIGHER EDUCATION BUBBLE UPDATE: An Anti-College Backlash?

Start paying attention, and it becomes readily apparent that more and more Americans today are skeptical about the benefits of college. . . . Yet despite the mounting skepticism about the value of a college degree, and in the face of the economic downturn, colleges continue to demand ever higher fees, saddling graduates with crushing debt along with their diplomas. In June of last year the Federal Reserve released new figures showing that the nation’s total student loan debt now sits at about $830 billion – for the first time surpassing the nation’s credit card debt. Student loan debt, it should be noted, is in many respects less forgiving than credit card debt: “These loans typically can’t be discharged in bankruptcy,” explains the Wall Street Journal. “They have different repayment terms, some of which have heavy consequences for borrowers who miss payments.” Some commentators have even suggested that the crimp the financial downturn is putting on students’ ability to get loans may in fact be doing those students a favor.

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