How to avoid bursting bubble of college tuition? Don't fill it.
Saturday, October 30, 2010; 9:05 PM
How I Paid for an Outstanding College Education Without Loans, Scholarships, or Mooching off My Parents
By Zac Bissonnette
Portfolio Trade, 304 p.
Let's see, there was the tech bubble in the mid- to late 1990s that eventually busted a lot of people financially.
We're suffering right now because the housing bubble burst.
And what's the next bubble?
Let's call it College at Any Cost.
Bubbles happen when assets - stocks or real estate, for example - have inflated values. The bubble will burst when there is a great discrepancy between the inflated price of the asset and its real worth.
Don't we have that right now with the thousands of college graduates who have paid heavily for their educations with debt and now can't find jobs that pay enough to service the debt without stretching the loans out for decades?
Last year, there was record unemployment of 8.7 percent for college graduates ages 20 to 24, according to a new report from the Project on Student Debt. Students who graduated last year carried an average of $24,000 in student loan debt, up 6 percent from the previous year.