Sunday, June 27, 2010

Student Loans

As a follow-up to my post about Monetizing Emma yesterday, I wanted to mention that I suspect our current federally-sponsored student loan system is already causing some big problems.

I think it's something like what Fannie Mae helped do for the housing market. I think the student loan program has helped to inflate the cost of college, and I suspect it's a bubble waiting to burst.

Kids are graduating under amazing loads of debt, and I wonder whether a lot of them wouldn't be better off just starting work somewhere.

You hear that most jobs now "require" a college degree, but they don't, not really. Many employers are using the possession of a college degree as a proxy for being able to read, write, and do arithmetic.

When colleges start to go under,
everyone will wonder
why no one ever explained
that their price growth couldn't be sustained.

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