Jul 17 2012

How Higher Education Compares to the Housing Bubble

High cost of college and increasing loans could spell trouble for higher education.

College is getting very expensive. That isn’t breaking news, but the reaction from economic analysts is striking. The increased cost of higher education has resulted in frightening comparisons to the housing bubble, which notoriously burst in 2008. Peter Thiel, co-founder of PayPal, notes in this article on Education News that the higher education bubble is getting very close to bursting:

Higher education in America bears the same markings as the technology and housing bubbles that preceded it: unbridled investment, wildly overvalued assets, and a lower rate of return than in years past.

Read the full article here.

Previously, we’ve discussed how to decrease the cost of college with technology, and while that can still help, more drastic measures may be needed. In order to see just how similar higher education and the housing market are, watch the video below and check out this infographic.

Want to learn more? Check out this infographic.