Sunday, October 16, 2016

How For-Profit Colleges Could Spark the Next Financial Crisis

Link: http://time.com/4483726/for-profit-colleges-itt-tech/

This article discusses the ramifications of the current market for higher education and the possibility that for-profit colleges could lead to a miniature version of the housing bubble crash.  The presidential debate has focused on a lot of absurd things, but people have begun to talk about the issue of student debt and the fragility of the higher education market.  The author states, "It has many aspects of the subprime scandal, including an asset bubble, huge amounts of debt ($1.2 trillion, to be exact), vulnerable borrowers, fraud, conflict of interest, and money politics."  Trump had a lawsuit over his for-profit college and Clinton and Sanders made it part of their campaign to address the rising student debt.  I feel that this issue needs to be addressed sooner rather than later, tuition cannot keep rising and 4 times the rate of inflation...or can it?

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