“We have a bubble in education, like we had a bubble in housing in the last decade. Everybody believed you had to have a house. They’d pay whatever it took. Today, everybody believes that we need to go to college, and people will pay whatever it takes.” Peter Thiel
“One of the wealthiest, best educated American entrepreneurs, Peter Theil, isn’t convinced college is worth the cost. With only half of recent U.S. college graduates in full-time jobs, and student loans now at $1 trillion, Theil has come up with his own small-scale solution: pay a couple dozen of the nation’s most promising students $100,000 to walk away from college and pursue their passions.”
Student loans previously were made by banks and banks made sure borrowers had co-signers and the ability to pay the loan back. Government student loans today have actually increased the cost of education and places taxpayers at risk for loans which don’t get paid back.
Time will tell if Thiel is correct as to the “education bubble”. He may be.