Student Debt

Yesterday’s Financial Times had an article today on student debt:

http://www.ft.com/intl/cms/s/0/74773c6e-5a49-11e2-a02e-00144feab49a.html#axzz2IuFScTqr

The article notes that, in the past decade, student debt has risen over 40% – to more than a trillion dollars.  I’m worried that there is a bubble – at the very least, a large misallocation of resources.  We have an unfortunate combination of content deflation and tuition inflation. (For examples of content deflation, listen to my comments on NPR http://www.inside-higher-ed.com/ap-calculus-courses-discussion-on-npr/  or see the excellent book Academically Adrift: Limited Learning on College Campuses by  Richard Arum and Josipa Roksa. It is excellent.)

What worries me most about this particular bubble is that when someone overpays for most products, it is a loss of money.  When one overpays in dollars and time, for very little educational content, it is a much bigger loss than just the money – for a real education does open doors.  While it is true that a good, even excellent, college education can be acquired by some students at some schools, this gigantic misallocation of resources is very bad for American society in general.  (For example, see my post It Starts in the18th Grade.)

Here are links to other articles that address student costs, etc..

http://online.wsj.com/article/SB10000872396390444246904577575382576303876.html?KEYWORDS=%22college+debt+hits%22

http://online.wsj.com/article/SB10001424052702304818404577350030559887086.html?KEYWORDS=to+pay+off+loans

http://online.wsj.com/article/SB10001424052702304451104577389910993770838.html?KEYWORDS=lauren+weber

http://www.nytimes.com/2011/01/09/business/09law.html?pagewanted=all

Here are links to websites of organizations that study student costs:

http://centerforcollegeaffordability.org/

http://www.educationsector.org/publications/debt-degree-new-way-measuring-college-success