bostonbubble.com

[showgunx]

I hear from the news this morning many BU students are worry they won't be able to get financial aid next year to go back to school. And BU is trying to reach out to parents and students who might not be able to pay, and try to help them find a way to get a loan.
During the last downturn, School was doing well because everybody goes back to school after losing their jobs. Loan was easy to get and cheap to pay back. Six years later, Loan is harder to get, with much higher rate, tution also goes up much higher, and the current job market make the return of investment for higher degree questionable.
Is this the beginning of the downturn for higher education that helps Boston Economy big time for the past six years?

[john p]

The current state of college tuitions resemble the same set of issues that seem to define the state of the housing market.

Regional incongruency- the cost of living has made college tuitions and houses much more expensive in certain areas than others, and you really dont' get that much of a better education for the money...

Capitalism/Socialism- When affordability limits the price of housing or college tuition, when the government subsidizes or guarantees loans beyond the affordablity reach which is set by capitalism/market affordablity, the subsidies make overreaching and overextending possible which actually makes housing and college tuitions even more expensive. When the government put in to place these subsidies or means to overextend, they had their hearts in the right place, but underestimated the greed of the colleges that used the opportunity to significantly raise their tuitions. Socialism hurts the people it often tries to help.

Delusion- Just as we know that there was irrational exuberance in the housing market, it is also irrational for someone to spend $40k a year on college tuition to get a very low paying job. I am kind of surprised that certain majors are even offered given that the career path for them beyond school is not there. I think college professors may feed delusions to students to help keep a demand for their field of study...

[Brian C]

[john p]

If you mean Wentworth Institute of Technology, I was just there on Friday night doing design review of student's architectural studio work.

I think some of the nature of what you're talking about might relate to the adjunct faculty that might work full time. For engineering, you usually have to be a mad-dog PHD, where as an interior design or construction management professor might be someone practicing in the field during the day...

I didn't go to Wentworth, but the professionals I've come into contact in the industry are very solid. UMass Lowell has some awesome practicing engineers. I wonder if what you're saying is true for UMass Lowell?

When I made my comment, I was thinking about that guy Ross on the show "Friends". I love how they portrayed this dinosaur expert as being able to afford his own Manhattan bachelor pad. I mean it would suck to have a Master's Degree in some obscure period of History, be in almost 6-figure debt and end up having a job where you had to wear a period costume and lead tour guides at some historical theme park. Back in the boom days, you'd see lots of stock brokers with liberal arts degrees. I just imagine kids would need to be more strategic than in years past.

[Boston ITer]

[john p]

Uuugghah,

That's too bad if that's true. They really turned out some great talent with their heads screwed on straight.

[showgunx]

Higher education is out due to hard to get aid,
financial sector is out due to hard to get loan,
I am wondering what is going to happen to healthcare sector in the coming years. I hear a lot of nurses are still making $80,000 plus a year in Norwood area.
Would Obama's universial healthcare theme continue helps this sector grow, or going to destory this sector?
Boston's housing bubble will burst completely if healthcare sector goes south as well.

[Guest]