America's Colleges Are Atop a Financial Bubble

Wade Gilley used to be Secretary of Education for the Commonwealth of Virginia. He wrote an article for today’s Richmond Times Dispatch newspaper about the high expenses of a modern college education. Gilley noted that

• Outstanding student debt is approaching $1 trillion
• Student debt is now the largest type of consumer debt in the nation
• 37 million current and former students owed over $25,000 in 2010
• Possibly one third of debtors are late on their monthly payments
• Time magazine says student loan interest will double from 3.4% to 6.8%
• Bankruptcy does not discharge student loans
• The colleges themselves have borrowed hundred of billions
• Many college degrees have limited economic value nowadays
• More than 12 million degrees have been awarded since 2001
• There are 6 million fewer jobs in American than in 2001
• Of 2010 graduates, a Rutgers study shows only 56% got a job within a year
• Salaries for college administration and coaching are rapidly increasing
• Many schools allow five or more years to complete a four year degree

Summarized from:

http://www2.timesdispatch.com/news/oped/2012/apr/15/tdopin02-gilley-is-higher-education-americas-next--ar-1841583/