College tuition continues to grow. Student loan debt reached almost $1 Trillion last year. College graduates are out of work. Higher education as the route to success in America is under review. Follow the debate.

Prediction: 20% College Closures in next decade

from Maudlin Economics,

I predict that 20% of colleges and universities will shut down or merge in the next 10 years, and probably more. It was a good run. Most people fail to understand that higher education is in itself counter cyclical. When the economy is bad, and people lose jobs, many of them will go back to school. You have probably heard about the for-profit education boom and bust. That is old news. You might not have heard that total enrollment has been declining for the last eight years as the economy has improved. What comes next will pulverize nearly every institution of higher learning in the country, private and public. The reason: demographics. Basically, an echo of the baby bust of the early seventies. I was born at the bottom of that baby bust in 1974. My small generation hatched a small generation, which is now making its way through college. Enrollment will drop 15% on average, on top of the eight-year correction that schools have already experienced. This may not seem like much, but finances at colleges and universities have deteriorated sharply, and many of them will not even be able to withstand a drop of a few percent.

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