The Higher Education Bubble Is Bursting — And That’s A Good Thing

Job recruiting site Glassdoor recently reported that companies like Google, Apple, IBM, Bank of America no longer require that applicants have a college degree. Neither do companies like Costco, Whole Foods, Publix, Chipotle, Home Depot, Starbucks. (Does it really take a college degree to know how roll a burrito, pour coffee, or stack giant jars of mayonnaise?)

Further fueling this college bubble has been an upward spiral of federal grants, aid, subsidized loans and tax credits. College Board data show that federal college aid shot up 93% between 2001 to last year, after adjusting for inflation.

Not surprisingly, colleges and universities have been happy to take advantage of this artificial demand by raising tuition with impunity. Over those same years, public college tuitions climbed 72%.