I keep seeing headlines referring to the "student loan bubble"? I think what these people mean to write is an "education bubble". An education bubble would be characterized as the purchase of a service at a price that far exceeds its value. One thing I know for sure from all government education statistics....if you do not get an education, you are doomed to suffering from higher unemployment, worse benefits, and much much lousier work/jobs than those that do get an education. You life is reduced to the worst of all Americans. That is a fact. And forget about getting married to anyone reasonable with good lifetime prospects. Who is going to marry you except some other unfortunate go-nowhere person who is just like you? And think of all the respect you will command from everyone for your great educational and career achievements! So then, what is the "value" of an education? The value is not something that is measured by what job you get right out of school and the pay you make in that starting job. The value is so far beyond that and is something that should be measured over a lifetime. This is why people are willing to pay increasing tuition and borrow that tuition money to get educated. The know what the real deal is. The lifetime alternative is brutally ugly.
And what are the alternatives? Do people really think that they are going to be able to get post secondary educations for free (like at public high schools)? Do these people really want to spend their lives working in the worst jobs at super low pay with no future prospects? The government understands that we need an educated workforce. And most people do understand the benefits of education and that the price of education, while high, is the best investment one can make. But the vast majority of people don't have any money in the United States, so how are they going to pay for the education? Everyone already has a free ride through high school if they want. There is no free ride after that. So regarding the "student loan bubble" talk. It is just a bunch of hogwash. Everyone knows the score. Go ahead and drop out of high school or don't bother going to college. The burger chains have a bunch of jobs they need filled. Social security may still be around when you get old and it will pay you $1000 per month. Let's face it. Get educated, work hard, save as much money as you can. That is way to succeed. Short sellers in education stocks would counter argue this by saying it is better to drop out, work as little as possible, run up your credit card debt (spent on vacations and flat screen tv's) and then declare bankruptcy, and finally rely completely on the government to take care of you when you get older. Too funny.