‘The Higher Education Bubble’
That’s the title of Glenn Reynold’s newest book, and over at the Washington Times, my friend Jeremy Lott offers a review. Lott points out an important difference between a traditional bubble and the “college bubble”:
You can default on a home loan and take just a temporary hit to your credit; you can sell the house at a loss and pay off the difference over time, or you can hold onto the house and hope its value comes back up with time.
Thanks to Congress, college debt is not bankruptable. It will follow you to your grave. Moreover, the asset is not transferable. That degree in women’s studies that you took on $70,000 in debt to finance has no resale value, and its value to you is diminishing.
Jeremy also offers some more personal thoughts about the bubble on his Patheos blog.