Is spending on higher education the next financial bubble?

Is college worth the money? This is a seasonal debate, prompted by parades of caps & gowns and the agonizing, “So what do I do now?” from grads burdened with big loans but tiny incomes.

Some facts about college cost are hard to nail down: One source (The College Board) reports that inflation-adjusted “net tuition”—the posted price less grants (called “discounts” in retail)—rose 47% for private four-year institutions from 95-96 to 07-08; for public institutions, the price increase was 34%. Yet another source (The College Board) reports that net tuition & fees actually fell 14% for public institutions and rose a relatively modest 17% for private four-year colleges and universities—over the same period. Read more »