Wednesday, February 27, 2013

The College Loan Bubble - you have to complete

Great line in the New York Times today from Catherine Rampell in her article "Only Half of First-Time College Students Graduate in 6 Years" that says there is clear evidence that going to college is worth the investment "but that's only true if you to college and then graduate".

The data show that less than half are doing that in six years - if you were one of the 1.9 million students that started a four year school in the fall of 2006, just over half (54.1%)graduated in six years and 16% were still enrolled!!

The problem is that higher ed costs much much more meaning that a lot of those 872,000 students have some student debt and no degree to help them pay that off! THAT'S THE BUBBLE!  It's not just that some of those that did graduate are going to struggle because starting pay has not kept pace with the amount of debt - it's that you have college debt and just a high school degree!

Not rocket science on the solution:

  1. Make sure students are truly college ready
  2. Make sure universities are there to educate students and help them succeed
If not - the bubble will burst soon.