This comparison between higher education and the newspaper business seems apt.
The Higher Education Industry is very analogous to the Newspaper industry. By the time they realize they need to change the costs to support their legacy infrastructure and costs will keep them from getting there.
Its far too easy to borrow money for college. Did you know that there is more outstanding debt for student loans than there is for Auto Loans or Credit Card loans ? Thats right. The 37mm holders of student loans have more debt than the 175mm or so credit card owners in this country and more than the all of the debt on cars in this country. While the average student loan debt is about 23k. The median is close to $12,500. And growing. Past 1 TRILLION DOLLARS.
We freak out about the Trillions of dollars in debt our country faces. What about the TRILLION DOLLARs plus in debt college kids are facing ?
The point of the numbers is that getting a student loan is easy. Too easy.
You know who knows that the money is easy better than anyone ? The schools that are taking that student loan money in tuition. Which is exactly why they have no problems raising costs for tuition each and every year.
Purpose of college
As far as the purpose of college, I am a huge believer that you go to college to learn how to learn. However, if that gaol is subverted because traditional universities, public and private, charge so much to make that happen, I believe that system will collapse and there will be better alternatives created.
Reading this on Cuban’s blog, I was amused by his writing errors. I’m sure he writes quickly and eschews basic spell checking. Somehow, it’s entertaining to see “its” and “thats” with missing apostrophes in a billionaire business magnate’s writing. The lesson might be that perfect grammar and correct spelling are not always essential for good communication. There are probably a few other self-made billionaires who can’t be bothered to know when to use “it’s” instead of “its” *.
* Actually, I think the more common mistake is to add an unnecessary apostrophe.
- ‘Higher Education Bubble May Explode in Taxpayers’ Faces’ (costofcollege.wordpress.com)