Tuesday, August 23, 2011

More Data on the "Education Bubble"

In just a little over 10 years, student loan debt has grown by 511%.  Even as personal debt has exploded during this same period, it is dwarfed by the growth of the student loan debt. The chart on the link is very compelling.


Consider as well the "for profit" higher education sector (Kaplan, Devry, University of Phoenix), a mere 2 years ago, the veritable darling of the market now, as a sector, appears to be in serious trouble. Originally propelled by a high-number of students taking on debt guaranteed by the Federal government, enrollments are dramatically down, with prospective students less willing to take on the massive debt. The industry has also been attacked for low graduation and high loan default rates. Go short.



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