The Road to Nowhere: The Higher Education Bubble and Liberal Arts Education

"In a sense, the higher education bubble is very much like the dotcom and mortgage bubbles before it. Everyone wants a college degree because it’s widely seen as “necessary step” in “getting ahead” and therefore, tuitions are skyrocketing, taking advantage of the situation.

It is vital to note that these massive tuition hikes are far more than measures to keep up with advances in technology or inflation rates. In fact, when compared with the increase of the overall inflation rate since 1985 (115.06%) college tuition rates have risen 498.31%. The cause? Government subsidies.

In 1965, as part of President Johnson’s Higher Education Act, such programs as the Pell Grant and soon-to-be defunct Federal Stafford Loan were introduced. The flaws in the philosophy behind such plans are obvious. The government makes these programs available, essentially “free money” if need is demonstrated, and so colleges raise tuitions accordingly. Students then need more loans to compensate for the increase, when results in more government aid, and the cycle continues."

[SomewhatReasonable]