4. Students become overwhelmed by negative news. The education bubble could pop tomorrow if students suddenly became depressed about their prospects and stopped attending school. Ironically, in this case only, students might receive much better prices later if every student in higher education boycotted educational institutions (won't happen). However, if students stop believing that their education is serving them, what's the incentive for continuing to pay?The media have been announcing a disturbing statistic:
An Associated Press analysis reveals that 53.6 percent of bachelor's degree-holders are jobless or underemployed.This disturbing statistic has caused both Obama and Romney to join sides in order to keep student loan rates low. However, this admission means that people are starting to see that education does not pay. While I expect Generation Y to continue pursuing college, Generation Z may start looking at other options. As I predicted, when students begin to believe that education no longer is worth their time and money, the bubble will pop.
Note that Obama and Romney's plan will actually further the education bubble by keeping interest rates artificially low (how many different comparisons can we draw to the housing bubble, now?). Also, neither Obama nor Romney stated what needs to be stated: do we really need this many college graduates (obvious answer: no)? Instead, their actions continue to promote the myth that a college degree is needed, when in fact, it may not be required.