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Posts Tagged ‘are student loans a bubble’

The Prohibitive Cost of Higher Education: A Racket?

Posted by Larry Doyle on April 10th, 2012 7:04 AM |

I have often thought, “If education is expensive, try ignorance.”

I strongly believe that the key to future prosperity is a quality education. That said, there is increasing evidence that the costs connected to higher education have ratcheted higher at an unsustainable pace. I initially addressed this critically important topic a year ago in a commentary entitledAre Student Loans an Impending Bubble? Is Higher Education a Scam?. I wrote then:

I am a huge proponent of the need for quality education in our nation. That said, as this expose reveals there are MANY serious problems, conflicts of interest, and assorted other issues in higher education today. A racket, you might ask? Yes, in a manner of speaking, there are certainly elements of a racket within higher education today.

I welcome readdressing this topic today.  (more…)

Very Disturbing UPDATE: Student Loan Bubble and Seeking Arrangements

Posted by Larry Doyle on August 4th, 2011 7:11 AM |

I have a soft spot for those within our society whom I believe are preyed upon and ultimately victimized by the perils and pitfalls of modern day finance.

I fully appreciate that people need to be held responsible for their personal behaviors and decisions, but we need to acknowledge that the tangled financial web that our nation has woven has placed many members of our society in untenable positions.

The story I address today is perhaps one of the saddest I have encountered since launching Sense on Cents in early 2009.  (more…)

Are Student Loans an Impending Bubble? Is Higher Education a Scam?: Part II

Posted by Larry Doyle on June 22nd, 2011 7:52 AM |

Few commentaries here at Sense on Cents have received as much attention as that which I wrote a few months ago highlighting issues within the student loan market and questioning the value and integrity of higher education. That commentary, Are Student Loans an Impending Bubble? Is Higher Education a Scam? hit a nerve on many fronts.

Today, our focus on this segment takes a new twist and we get a “behind the scenes” look at the intrigue and innuendo encompassing a hedge fund which would seem to believe that the student loan market may be a bubble and higher education for profit may just be a scam.

Potential of insider trading, investigative hedge fund research, prospects for increased regulation of the for profit education industry. This story would seem to have it all.  (more…)

Are Student Loans an Impending Bubble? Is Higher Education a Scam?

Posted by Larry Doyle on April 26th, 2011 9:00 AM |

What did we experience in the sub-prime housing debacle?

1. Shoddy underwriting standards for borrowers.
2. A massively flawed system promoted and perpetuated by the Wall Street securitization business.
3. Borrowers overleveraged leading to skyrocketing rates of foreclosures and defaults.
4. A mentality that housing finance could promote a real social benefit and a profitable enterprise.
5. A government backstop and ultimate bailout for investors.
6. An ultimate fiasco for our society as a whole.

Have we learned our lessons from the sub-prime housing nightmare? Could we possibly be going down the same path in another segment of our economy? Yesterday a reader inquired if I had addressed the potential impending fiasco in student loans. This morning I discussed the cost of higher education with my better half. Will our economy be able to generate both the jobs and income levels for students to manage their increasing levels of indebtedness? (more…)






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