Colleges will begin to go bankrupt–what is your opinion

According to The National Inflation Association, one of their top 10 predictions for 2011, Colleges will begin to go bankrupt and close their doors.

We have a college education bubble in America that was made possible by the U.S. government’s willingness to give out cheap and easy student loans. With all of the technological advances that have been taking place worldwide, the cost for a college education in America should be getting cheaper. Instead, private four-year colleges have averaged 5.6% tuition inflation over the past six years.

College tuitions are the one thing in America that never declined in price during the panic of 2008. Despite collapsing stock market and Real Estate prices, college tuition costs surged to new highs as Americans instinctively sought to become better educated in order to better ride out and survive the economic crisis. Unfortunately, American students who overpaid for college educations are graduating and finding out that their degrees are worthless and no jobs are available for them. They would have been better off going straight into the work force and investing their money into gold and silver. That way, they would have real wealth today instead of debt and would already have valuable work place experience, which is much more important than any piece of paper.

Colleges and universities took on ambitious construction projects and built new libraries, gyms, and sporting venues, that added no value to the education of students. These projects were intended for the sole purpose of impressing students and their families. The administrators of these colleges knew that no matter how high tuitions rose, students would be able to simply borrow more from the government in order to pay them.

Americans today can purchase just about any type of good on Amazon.com, cheaper than they can find it in retail stores. This is because Amazon.com is a lot more efficient and doesn’t have the overhead costs of brick and mortar retailers. NIA expects to see a new trend of Americans seeking to become educated cheaply over the Internet. There will be a huge drop off in demand for traditional college degrees. NIA expects to see many colleges default on their debts in 2011. These colleges will be forced to either downsize and educate students more cost effectively or close their doors for good.
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One Response to Colleges will begin to go bankrupt–what is your opinion

  1. cpascal says:

    I think that this might be a blessing in disguise. For many students, the colleges have become more of
    a place to party than to get an education. Also, it’s ridiculous what the colleges are charging when
    there are so many low-cost and free options to get the same info. Hopefully, it will result in more
    credit-by-exam programs and inexpensive online courses like the CLEPs and Straighter Line, which
    tend to attract the more serious students. Maybe with fewer illiterate rowdies getting college degrees,
    the value of a degree might stop going down.

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