Quote of the Day: Robert Reich on the Higher Education Bubble

"Outstanding student debt now totals over $1 trillion. That's more than the nation's total credit-card debt.

The extraordinary rise in student debt is due to two related facts: the cost of a college education continues to increase faster than inflation, and state and local spending per college student continues to drop -- this year reaching a 25-year low.

But this can't go on. If unemployment stays high for many years, if the wages of young college grads continue to fall, if the costs of college continue to rise and state and local spending per college student continues to drop, and if the college debt burden therefore continues to explode -- well, you do the math.

At some point in the not-too-distant future these lines cross. College is no longer a good investment."

~ Robert Reich, from The Commencement Address That Won't Be Given

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The 60 Minutes interview with Peter Thiel who is offering several of the brightest students $100,0000 to walk away from college into the life of the entrepreneur.



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Grouch: I don't agree with Robert Reich on many things, but it is only common sense that paying $150,000-$200,000 for a bachelor's degree in Medieval Poetry from one of the nation's finest University is probably not a cost effective investment. Students need to weigh the income potential of their future professions against the costs of their educations.