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Matches in DBpedia 2014 for { ?s ?p The higher education bubble is a hypothesis that there is a speculative boom and bust phenomenon in the field of higher education, particularly in the United States, and that there is the risk of an economic bubble in higher education that could have repercussions in the broader economy. President Obama nearly doubled the federal Pell Grant Program, from $19 billion in 2009 to $36 billion for 2013. Enrollment at more than 40 percent of private colleges and universities declined last year, forcing the institutions to offer steep tuition discounts to fill seats.According to the theory, while college tuition payments are rising, the rate of return of a college degree is decreasing, and the soundness of the student loan industry may be threatened by increasing default rates. College students who fail to find employment at the level needed to pay back their loans in a reasonable amount of time have been compared to the debtors under sub-prime mortgages whose homes are worth less than what is owed to the bank.Benjamin Ginsberg explains the connection between the increased ability to pay tuition and the increase in services provided in his book The Fall of the Faculty. According to Ginsberg, "there have been new sorts of demands for administrative services that require more managers per student or faculty member than was true in the past." The Goldwater Institute echoes this sentiment with its findings that, "Between 1993 and 2007, the number of full-time administrators per 100 students at America’s leading universities grew by 39 percent, while the number of employees engaged in teaching, research or service only grew by 18 percent."As discussed below, the "higher education bubble" is controversial and has been rejected by some economists. Indeed, many Americans still believe in the value of a college education, although they are unsure about its quality and affordability. Data shows that the wage premium—the difference between what those with a four-year college degree earn and what those with only a high school education earn—has increased dramatically since the 1970s, but so has the 'debt load' incurred by students due to the tuition inflation.The data also suggests that, notwithstanding a slight increase in 2008–2009, student loan default rates have declined since the mid-1980s and 1990s. Those with college degrees are much less likely than those without to be unemployed, even though they are more expensive to employ (they earn higher wages). The global management consulting firm McKinsey and Company projects a shortage of college trained workers, and an excess supply of workers without college degrees, which would cause the wage premium to increase, and cause differences in unemployment rates to become even more dramatic.In 1971, Time ran an article "Education: Graduates and Jobs: A Grave New World," which stated that the supply of post-graduate students was around twice larger than the expected future demand in upcoming decades. In 1987, U.S. Secretary of Education William Bennett first suggested that the availability of loans may in fact be fueling an increase in tuition prices and an education bubble. This "Bennett hypothesis" claims that readily available loans allow schools to increase tuition prices without regard to demand elasticity. College rankings are partially driven by spending levels, and higher tuition prices are correlated with increased public perceptions of prestige. Over the past thirty years, demand has increased as institutions improved facilities and provided more resources to students. Additionally, schools tend to enroll fewer students as they improve student offerings and increase prices. This suggests that it is in schools' best interest to increase tuition prices as much as possible, so long as financial aid ensures an ability to pay on the part of students and parents. However, the data shows that educational attainment in the United States has dramatically increased since the 1960s, with both the absolute number of students enrolled in higher education and the percent of the population obtaining degrees increasing. This undermines claims of a supply shortage that would allow a bubble to grow.A variation on the higher education bubble theory suggests that there is no general bubble in higher education—that is, on average, higher education really does boost income and employment by more than enough to make it a good investment—but that degrees in some specific fields may be overvalued because they do little to boost income or improve job prospects, while degrees in other fields may in fact be undervalued because students do not appreciate the extent to which these degrees could benefit their employment prospects and future income. Proponents of this theory have noted that schools charge equal prices for tuition regardless of what students study, the interest rate on federal student loans is not adjusted according to risk, and there is evidence that undergraduate students in their first 3 years of college are not very good at predicting future wages by major.A 2011 article in The Huffington Post related concern that new college graduates hiring rates are up by 10 percent and that attaining a secondary level education eventually pays off. It is also suggested that high school graduates are three times more likely to live in poverty than students with higher education degrees. A recent study from the Labor Department suggests that attaining a bachelor's degree "represents a significant advantage in the job market". However, the article also claims that those who only have a high school education—unemployment is slightly higher at a rate of 9.3 percent. The proponents of the article also claim that companies are most likely to hire an applicant straight from college rather than one who has been unemployed.A 2010 article in the The Christian Science Monitor suggest ten main benefits of obtaining a degree via higher education.Also suggesting that a college degree pays off financially and intangibly for the graduate, and overall for society. In November 2011, The Chronicle of Higher Education ran an article concerning that the future is bright for college graduates and expected to improve. A rapid 10% increase is anticipated for new bachelor's hires. A survey conducted by The Chronicle of Higher Education suggests that 40 percent of 3,300 employers plan to hire graduates from all fields of study. The survey suggested stability in the upcoming job market.A 2009 article in The Chronicle of Higher Education related concern from parents wondering whether it is worth the price to send their children to college. The Economist in turn hypothesized that the bubble bursting may make it harder for colleges to fill their classes, and that some building projects will come to a halt. The Boston Herald further suggested the possibility of mergers, closures and even bankruptcies of smaller colleges that have spent too much and taken on too much debt. National Review writer Dan Lips has proposed that the bubble's bursting may bring down higher education prices.Glenn Reynolds wrote in the Washington Examiner that those who have financed their educations with debt may be particularly hard-hit.Reynolds continued arguing his case in "The Higher Education Bubble" where he noted that higher education, as a "product grows more and more elaborate-- and more expensive-- but the expense is offset by cheap credit provided by sellers who are eager to encourage buyers to buy."Further speculation as to the higher education bubble was the focus of a series of articles inThe Economist in 2011.. }

• Higher_education_bubble abstract "The higher education bubble is a hypothesis that there is a speculative boom and bust phenomenon in the field of higher education, particularly in the United States, and that there is the risk of an economic bubble in higher education that could have repercussions in the broader economy. President Obama nearly doubled the federal Pell Grant Program, from $19 billion in 2009 to $36 billion for 2013. Enrollment at more than 40 percent of private colleges and universities declined last year, forcing the institutions to offer steep tuition discounts to fill seats.According to the theory, while college tuition payments are rising, the rate of return of a college degree is decreasing, and the soundness of the student loan industry may be threatened by increasing default rates. College students who fail to find employment at the level needed to pay back their loans in a reasonable amount of time have been compared to the debtors under sub-prime mortgages whose homes are worth less than what is owed to the bank.Benjamin Ginsberg explains the connection between the increased ability to pay tuition and the increase in services provided in his book The Fall of the Faculty. According to Ginsberg, "there have been new sorts of demands for administrative services that require more managers per student or faculty member than was true in the past." The Goldwater Institute echoes this sentiment with its findings that, "Between 1993 and 2007, the number of full-time administrators per 100 students at America’s leading universities grew by 39 percent, while the number of employees engaged in teaching, research or service only grew by 18 percent."As discussed below, the "higher education bubble" is controversial and has been rejected by some economists. Indeed, many Americans still believe in the value of a college education, although they are unsure about its quality and affordability. Data shows that the wage premium—the difference between what those with a four-year college degree earn and what those with only a high school education earn—has increased dramatically since the 1970s, but so has the 'debt load' incurred by students due to the tuition inflation.The data also suggests that, notwithstanding a slight increase in 2008–2009, student loan default rates have declined since the mid-1980s and 1990s. Those with college degrees are much less likely than those without to be unemployed, even though they are more expensive to employ (they earn higher wages). The global management consulting firm McKinsey and Company projects a shortage of college trained workers, and an excess supply of workers without college degrees, which would cause the wage premium to increase, and cause differences in unemployment rates to become even more dramatic.In 1971, Time ran an article "Education: Graduates and Jobs: A Grave New World," which stated that the supply of post-graduate students was around twice larger than the expected future demand in upcoming decades. In 1987, U.S. Secretary of Education William Bennett first suggested that the availability of loans may in fact be fueling an increase in tuition prices and an education bubble. This "Bennett hypothesis" claims that readily available loans allow schools to increase tuition prices without regard to demand elasticity. College rankings are partially driven by spending levels, and higher tuition prices are correlated with increased public perceptions of prestige. Over the past thirty years, demand has increased as institutions improved facilities and provided more resources to students. Additionally, schools tend to enroll fewer students as they improve student offerings and increase prices. This suggests that it is in schools' best interest to increase tuition prices as much as possible, so long as financial aid ensures an ability to pay on the part of students and parents. However, the data shows that educational attainment in the United States has dramatically increased since the 1960s, with both the absolute number of students enrolled in higher education and the percent of the population obtaining degrees increasing. This undermines claims of a supply shortage that would allow a bubble to grow.A variation on the higher education bubble theory suggests that there is no general bubble in higher education—that is, on average, higher education really does boost income and employment by more than enough to make it a good investment—but that degrees in some specific fields may be overvalued because they do little to boost income or improve job prospects, while degrees in other fields may in fact be undervalued because students do not appreciate the extent to which these degrees could benefit their employment prospects and future income. Proponents of this theory have noted that schools charge equal prices for tuition regardless of what students study, the interest rate on federal student loans is not adjusted according to risk, and there is evidence that undergraduate students in their first 3 years of college are not very good at predicting future wages by major.A 2011 article in The Huffington Post related concern that new college graduates hiring rates are up by 10 percent and that attaining a secondary level education eventually pays off. It is also suggested that high school graduates are three times more likely to live in poverty than students with higher education degrees. A recent study from the Labor Department suggests that attaining a bachelor's degree "represents a significant advantage in the job market". However, the article also claims that those who only have a high school education—unemployment is slightly higher at a rate of 9.3 percent. The proponents of the article also claim that companies are most likely to hire an applicant straight from college rather than one who has been unemployed.A 2010 article in the The Christian Science Monitor suggest ten main benefits of obtaining a degree via higher education.Also suggesting that a college degree pays off financially and intangibly for the graduate, and overall for society. In November 2011, The Chronicle of Higher Education ran an article concerning that the future is bright for college graduates and expected to improve. A rapid 10% increase is anticipated for new bachelor's hires. A survey conducted by The Chronicle of Higher Education suggests that 40 percent of 3,300 employers plan to hire graduates from all fields of study. The survey suggested stability in the upcoming job market.A 2009 article in The Chronicle of Higher Education related concern from parents wondering whether it is worth the price to send their children to college. The Economist in turn hypothesized that the bubble bursting may make it harder for colleges to fill their classes, and that some building projects will come to a halt. The Boston Herald further suggested the possibility of mergers, closures and even bankruptcies of smaller colleges that have spent too much and taken on too much debt. National Review writer Dan Lips has proposed that the bubble's bursting may bring down higher education prices.Glenn Reynolds wrote in the Washington Examiner that those who have financed their educations with debt may be particularly hard-hit.Reynolds continued arguing his case in "The Higher Education Bubble" where he noted that higher education, as a "product grows more and more elaborate-- and more expensive-- but the expense is offset by cheap credit provided by sellers who are eager to encourage buyers to buy."Further speculation as to the higher education bubble was the focus of a series of articles inThe Economist in 2011.".