7 years ago, most would have laughed if someone suggested that banks would reduce principle on mortgages. Give it 5 or so more years & the student loan bubble will pop like a nasty zit & you'll probably see the bankruptcy laws changed.

Md porter, he said defaulted , not discharged. Defaults on student loans happen all the time.

I went to a state university in the early 70's. Found a tuition receipt $3 per classroom hour. 15 hours = $45. Current tuition at same state run school $115. I remember back then you could get a Big Mac, small fry and coke for a $1. Same rate of price increases would put the same food at $38.33. These clowns will get what they deserve. "Everybody needs a college education"... so I can keep my useless, overpaid, liberal leaning univerisity job. Mathematics is catching up to this game.

Quote:

When you mess up in the shop you can get crushed or maimed.

It doesn't seem to me like people used to be that stupid....

http://chronicle.com/article/One-Third-o....

Quote:

July 23, 2012
One-Third of Colleges Are on Financially 'Unsustainable' Path, Bain Study Finds
Bain Report-Carousel

Chronicle illustration by Ron Coddington

The report offers an online interactive feature that allows users to see how colleges fare on a nine-part matrix that's based on two financial ratios.
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Chronicle illustration by Ron Coddington

The report offers an online interactive feature that allows users to see how colleges fare on a nine-part matrix that's based on two financial ratios.

By Goldie Blumenstyk

An analysis of nearly 1,700 public and private nonprofit colleges being unveiled this week by Bain & Company finds that one-third of the institutions have been on an "unsustainable financial path" in recent years, and an additional 28 percent are "at risk of slipping into an unsustainable condition."

At a surprising number of colleges, "operating expenses are getting higher" and "they're running out of cash to cover it," says Jeff Denneen, a Bain partner who heads the consulting firm's American higher-education practice.

Bain and Sterling Partners, a private-equity firm, collaborated on the project. They have published their findings on a publicly available interactive Web site that allows users to type in the name of a college and see where it falls on the analysts' nine-part matrix.

more at the URL.

Briar, that should be a thread of its own.

ok. we really should have an education forum.

I just thinks its a really important topic. I never even imagined colleges having financial problems...not with the tuition they are charging.

A lot of colleges have gone into big debt to build fancy residence halls and recreation centers to satisfy student demand for luxury, luxury, luxury; not to mention new classroom buildings, etc., etc. They fell for the easy credit just like people.

Yep... Ticker coming ont his.

oh boy! I posted something that KD's gonna ticker! woot!

Yeppers..... there's a story in my queue from yesterday on it that I didn't get to yet.

Are you familiar with the no-longer-in-existence Parsons College in Iowa? There was a book published about it called "The Parsons Bubble." It expanded like crazy back in the 60s and 70s, called itself the "second chance college" and would take pretty much anyone who applied to support its growth. Then the bubble popped. Went bankrupt and out of business in 1973.
The campus now belongs to The Maharishi University of Management.
Higher ed history is sorta my thing.

Nice..... No, I didn't know about that one...

Genesis--Just remember that quoting Bain with favor could yield an IRS audit between now and November. Attribute the quote to the tooth fairy and you are good to go! :-)