Bust the College Tuition Bubble

A new study provides compelling evidence that while elite colleges are charging more, students may be getting less value from their degrees.

David Leonhardt compiles the evidence in favor of my 2008 prediction of the busting of the college tuition bubble.

Some politicians suggest that the best solution is for government to subsidize college even more than it already does, but what if subsidies are themselves the problem? Just as homeowners ignored dangerously rising home prices, so long as low interest rates kept monthly payments low, so students may ignore rising tuition, so long as aid and loans conceal the true cost.

Colleges and universities are charging more and more for a product that seems worth less and less. You don't need a college degree to figure out that cannot continue.

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