…even bankruptcies of colleges that took on too much debt, based on a unbalanced system of student loans paying for rising tuitions. And we agree. The next bubble to burst will be higher education. No doubt about it. You see, higher education is big money for institutions and lenders alike — and they’re in big trouble. What most people who are not involved directly in higher education fail to understand is that these institutions and lenders are in the same sinking boat that banks and other financial companies are in. Assets are drowning. And debt and costs are rising. Under-capitalized colleges are staring down threats to solvency, too (just as banks are), as penny-pinching students and parents go for cheaper alternatives (community college, online colleges, etc.) and sources of funds dry up.

Read full article [here].
by Ian Cooper, Examiner.com.

Posted: August 10th, 2009, by: admin. Categories: . Awaiting Comments.