In the mid 2000′s, our society saw the largest asset bubble in modern history. Low interest rates spurred loosening of credit which propelled home sale prices upward. Operating by simple laws of supply and demand, the abundance of cheap and loose credit meant that there was an abundance of money. Without a strong constraint on the availability of funds with which to buy homes, there price of homes increases to match the supply. The crash that began in 2008 was driven in large part of the well of credit drying up. This caused the supply of money to shrink rapidly. Again, operating under the simple laws of supply and demand, home prices plummeted.

For decades, we have been seeing the same process at work in education. Driven by easy access to low interest credit in the form of Federally backed student loans, the prices of post-secondary education has risen unchecked. According to inflationdata.com, in 1986, average costs of a 4-year degree was $10,000. By 2015, costs of a 4-year degree is anticipated to be $120,000. Between 1985 and 2010, the total cost of education increased more than 485 percent, while the average of all consumer prices increased about 107 percent.

Based on this information, it is apparent to me that higher education costs are a major bubble. The only reason that bubble hadn’t burst years ago is because the Federal Government has been willing to continue to lend with reckless abandon. In 2010, in the wake of ever increasing student loan defaults, combined with a widespread cry for fiscal accountability in government, there finally started some discussions about limited the pool of government funds to be used for new loans. If and when that pool dries up, finally, there will be a reversal in the cost of a college education.

Unfortunately, this will come too late for those students who will be laboring for decades under the load of loans that in many cases will not result in a large enough income stream to pay them off in a reasonable period of time.

By: Nick Wolff

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We know how important it is for employers to find post-high school academic credentials in our resumes. Those who have college education and training are more likely to land secure jobs. Understanding the importance of college education, there are some who would try to earn a degree by going back to traditional colleges or earning them through online college degree programs.

If you would search the internet, there are different testimonies on how online learning could cater to the needs and limitations of different students, whether they are single parents, working or with disabilities. Online education also tends to be more affordable than regular or traditional college. Its flexibility and lower cost are definitely among the primary reasons why there are about 3.9 million online students as early as 2007 according to the Sloan Consortium.

There are two sides of a coin, everything has it benefits and downside. One side could outweigh the other but knowing both sides would help a person come up with a guided decision. The same thing applies to online college degrees. Although there are many benefits, online college education is not for everybody. There are things that should be considered and there are also limitations.

o Time management is important for students who are studying online. Since they would be able to complete their assignments and school work on the time convenient for them, there are tendencies that students would procrastinate. Students must be able to juggle family, work and studying into their schedule.

o Self-discipline is important. Although students could work or set the schedule according to their free time, this could also work against them. Lack of self-discipline or self-motivation to do the assignments or lectures could lead to failure.

o Since online education requires familiarization and usage of technology, it is important that students would be able to navigate in software and programs frequently used by the educator or the course. While there are students who have limited access to internet connection or even use of a decent computer.

o If you do have a working computer and internet connection, you may encounter connection problems. This can cause to delays with getting your lessons done.

o Most of the courses online are self-learned. Readings and lectures are read by the students on their own time. There are no classroom lectures. However, there are some online programs that would require students and teachers meet during orientation or examinations.

o There are also some students who would get the motivation from classmates and teachers. However, with online education, there are no or limited face-to-face sessions, making human interaction less. Eventually, you would have to work on your own. For some lack of interaction with classmates could lead to poor participation while it may prove beneficial for others. Different from traditional colleges, online students would not be able to expand their horizons by joining different organizations, student unions, clubs, etc.

o Another limitation is that most online college degrees require students to be adept with the English language. Foreign students may encounter difficulties, but rest assured, internet and site developers would surely be able to address this in the near future.

By: Keyur P

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