As plans for increased student funding and forgiveness of education loans are being rolled out by well-meaning politicians from Obama to Trudeau, Senator Warren to candidates like Bernie Sanders, the elephant in the room–top-heavy, resort-style, debt-fattened institutions and directors–is growing larger and more unsustainable by the day. In a world of stagnant wages since the 1980’s, the 137% spike in the cost of higher education over the past 15 years (chart below) has only been made possible by families and governments taking on now crushing levels of debt. Does this look reasonable to anyone?
Costs have to revert. Leaner more effective education models must be cultivated. The ‘add-even-more-government-backed-debt and stir days’ that fueled rapid growth and allowed the post-secondary sector to become cost-prohibitive for the 99.9%, are done. The below segment covers some refreshing observations on this topic.
Investor and entrepreneur Peter Thiel talks about education in America. Here is a direct video link.