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Entry: The Great Education Bubble Link: http://www.takimag.com/blogs/article/the_great_education_bubble#26021 Post contents: This certainly drives some of the nominal increases in tuition rates. At many schools, 80% or more of students receive some financial aid. In practice, this has driven the lower middle classes out of the ranks of top schools. Upper class ($150K+/year household income) families end up subsidizing middle class families ($50-150K in household income). So the ostensible purpose of many grants and loans is apparently creating system-wide impacts that hurt the most needy students and families. (The dirt poor technically qualify for a lot of grants, but relatively few of them can make it into, say, the top 50 colleges and universities for a variety of reasons, not least IQ.) The financial in many cases consists of authorization to take out subsidized educational loans. So this seems to depend on the cheap credit, while driving the nominal price of education higher. I'm not 100% sure how this all shakes out from the standpoint of the bubble, other than the fact that I do know costs and educational investment in general is many times higher than it was in the past in the aggregate. Sent at: 2008 07 20