Graphic
|

The Education Bubble: Will Ballooning Student Debt Sink Higher Ed?

by Daniel Indiviglio

You think the housing bubble was enormous? Meet the education bubble. A recent article here by Andrew Hacker and Claudia Dreifus explained the debt crisis at American colleges. But some startling statistics will help to make their analysis a little more tangible. The growth in student loans over the past decade has been truly staggering.

Here’s a chart based on New York Federal Reserve data for household debt. The red line shows the cumulative growth in student loans since 1999. The blue line shows the growth of all other household debt except for student loans over the same period.

 

This chart looks like a mistake, but it’s correct. Student loan debt has grown by 511% over this period. In the first quarter of 1999, just $90 billion in student loans were outstanding. As of the second quarter of 2011, that balance had ballooned to $550 billion.

The chart above is striking for another reason. See that blue line for all other debt but student loans? This wasn’t just any average period in history for household debt. This period included the inflation of a housing bubble so gigantic that it caused the financial sector to collapse

Want to leave a comment? Feel free. You do not have to be logged in to comment, or respond to a comment. 

Want to read the rest of this article? Of course you do! You need a Site Pass. Site Pass holders please   then you may continue reading. To RENEW/EXTEND an existing Site Pass, please  then visit the MY SITE PASS link found at the top of the page. Do not use this form.  

TO PURCHASE A NEW SITE PASS, scroll down, select the Site Pass you want, register, pay and read! 

Purchase a Site Pass online and you'll have instant access to all of our premium editorial content.During regular business hours M-F, you may also contact us via phone (734-930-6854) to purchase, renew, upgrade or extend a Site Pass using a credit card.To upgrade, renew or extend your existing Site Pass instantly online, please do NOT use this form. Instead, log in and visit the "My Site Pass" link at the top of the page.Mail checks or money orders to: AdjunctNation, PO Box 130117, Ann Arbor, MI 48113-0117.

Platinum Site Pass - 10.00 USD per 1 year - for 1 time
1 Year Site Pass: [Platinum Site Pass] Enjoy all of AdjunctNation's award-winning content, beginning with today's great entry for a full year. This Site Pass includes unlimited access to all of the site's archived content, as well.
Gold Site Pass - 8.00 USD per 6 months - for 1 time
6 Month Site Pass: [Gold Site Pass] Enjoy all of AdjunctNation's award-winning content, beginning with today's great entry for half a year. This Site Pass includes unlimited access to all of the site's archived content, as well.
Library/Institution Site Pass - 199.00 USD per 1 year - for 1 time
Library/Institution Site Pass: Purchase unlimited access for the faculty in your college to AdjunctNation’s daily updated and archived editorial content for 1 year. Libraries may also order through EBSCO or most other fulfillment agencies. We offer username/password access, as well as IP recognition access for libraries. Please note: to use a purchase order, please call 734-930-6854.
Free - 0.00 USD per 3 days - for 1 time
Free 3 Day Trial Site Pass: [Trial Site Pass] Enjoy all of AdjunctNation's award-winning content, beginning with today's great entry for 3 days after your account is activated. This Site Pass includes unlimited access to all of the site's archived content, as well. ONE TIME ONLY. NO RENEWAL AT THE TRIAL SITE PASS LEVEL IS ALLOWED.
 
Authorize.Net
Authorize.Net processes AMEX, Visa, Mastercard and Discover credit card payments made online securely and safely. 
Paypal Standard
PayPal allows credit card payments to be processed safely and securely. PayPal operates with credit cards, debit cards, bank accounts and PayPal accounts to make safe purchases online, without disclosing your credit card number or financial information. You do NOT need a PayPal account to use this payment method. 

Short URL: http://www.adjunctnation.com/?p=2515

Leave a Reply

Keep in Touch With AdjunctNation

Graphic Graphic Graphic

Graphic

Want to see your advertisement on AdjunctNation.com? Click here.

Graphic

Want to see your advertisement on AdjunctNation.com? Click here.

Recently Commented

  • Theresa Schmits: Well done!
  • streetkm12: I’ve been looking for an adjunct support group for quite some time and I’m so glad I found...
  • Jhon Enrique Bermúdez Tobón: Very good article. Internet is a really cool oportunity for Freelancers. No more slaves...
  • Robert Craig Baum: I was academic assistant, university fellow, adjunct, visitor, and faculty fellow 1995-2011. I...
  • Jena: Amen. Thinking about throwing in the financial towel and seeing if that helps. Too much education and a similar...