The Higher Education Bubble

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The Higher Education Bubble

Loc R.
Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes

Here's an interesting blog post by Mark Cuban about the future of higher education...

http://blogmaverick.com/

Thoughts?

What about those investors out there who own student housing?

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Bryan Hancock
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
14y

I didn't read the whole thing, but there is definitely a diminishing value to college degrees now. Many graduate programs are glorified diploma mills now. This is even true for some of the better colleges.

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  • Mark UpdegraffBusiness Member
    Real Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 711 votes
    14y

    I heard that private loans made for student education may no longer hold the sacred place those government student loans hold... that will wipe some of it out with bankruptcy if it goes through...

    http://www.citytowninfo.com/career-and-education-news/articles/new-legislation-would-discharge-private-student-loan-debt-in-bankruptcy-12050201

    Fundamentally, housing is housing. "student" housing may become more run down, faster... but it can always be repurposed for whomever the client is... this is more a supply and demand question.

    Unless all the students move back in with mom and pop, the housing market won't fluctuate all that much.

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  • Paul M.
    Medford, MA · Member since 2012 · 163 posts · 36 votes
    14y

    For properties in college towns, repurposing would be difficult.

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  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    14y

    Since it's the off topic forum........it's right along the lines of the Rebublican agenda. Owe for the rest of your life! Over piad top heavy administration is the real probelm, 120 Kfor a guy who is in charge of parking and grounds maintenance at a state college. The Rs are all for capitalizing off every aspect of life, government has a role to play IMO, what private enterprise can't supply socially and economically, schooling is one of those issues.

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  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    I didn't read the whole thing, but there is definitely a diminishing value to college degrees now. Many graduate programs are glorified diploma mills now. This is even true for some of the better colleges.

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  • Account Closed
    Wholesaler · Chicago, IL · Member since 2011 · 219 posts · 38 votes
    14y

    Bryan Hancock I completely agree with you on that point. A college degree is nothing nowadays. Maybe not nothing but they are so common today and becoming even more common as time passes.

    Mark makes an interesting argument for the college problem that we could face in the future. He also breaks down the housing market collapse very simply and in an easy to follow kind of way.

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  • Matthew Scott
    Investor · Rochester, NY · Member since 2013 · 10 posts · 3 votes
    13y

    I couldn't agree more with that article. I work full time in a student activities office at a large, public university in the Northeast and it just kills me to see what the university spends its money on. Tuition keeps rising to pay for random programs and events that less than 10% of the population takes advantage of and each year the institution wants to do more. While I do think there is a lot of learning that happens outside of the classroom and I would hate to see things like clubs, sports, recreation, etc. to go away, it does make you wonder at what point will students start realizing that they really are throwing away a lot of money?

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  • Randy F.
    Contractor · Anchorage, AK · Member since 2012 · 351 posts · 196 votes
    13y
    Originally posted by Bill G.:
    Since it's the off topic forum........it's right along the lines of the Rebublican agenda. Owe for the rest of your life! Over piad top heavy administration is the real probelm, 120 Kfor a guy who is in charge of parking and grounds maintenance at a state college. The Rs are all for capitalizing off every aspect of life, government has a role to play IMO, what private enterprise can't supply socially and economically, schooling is one of those issues.

    Guess who runs these institutions, Bill. Thats right... Democrats... Liberals... Progressives. You would be hard pressed to find a Republican in any college upper admin. And faculty are more than 10-1 Dem over Repub.

    Liberal college administrations see the Federally guaranteed student loans as easy money they can count on always being there and they spend accordingly, just like their counterparts on Congress. And to pay for all the fancy buildings and programs and increased salaries the cost if education continues to rise creating the bubble.

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  • Timothy W.
    Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
    13y

    The name of the game anymore is "degree and". You need a degree and something else. Professional certifications, Experience, connections, whatever.

    If you have a college degree from a state school and, for example, pass the 10 exams of the Casualty Actuarial Society (I know, I make it sound simple, lol) you're light years ahead of someone with the same degree from Ivy league.

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  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    13y

    Had an old run down school with an acre of blacktop next
    to a repair shop we sold.
    The school sold at city auction for $124, 900 and was rehabbed as a private
    School for foreign high school students. They then built condos on the grounds
    For high priced student accommodation with 24hr security

    I can see foreign students coming here in droves.

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