As “Higher Education Bubble” Accelerates, Alternatives Emerge

Career College Central Summary:

  • As tuition continues to increase well beyond the rate of inflation, a debate is taking place over how to deal with the cost of higher education.
  • "The higher education bubble is the dramatic increase in the price of a college over the past several decades," said Antony Davies, an economics professor at Duquesne University. "It is fueled by a combination of government imposed financial incentives, public school evaluation metrics, and the decline in the value of a high school diploma. The government subsidizes students who attend college via grants, low-interest loans, and preferred tax treatment. As with any other good, government subsidization increases demand for the good. As demand for the good rises, so too does the price of the good."
  • Some organizations are establishing higher education alternatives, working to teach real skills at a much lower cost.
  • A new organization called Praxis is aimed primarily at those 18-25 who take a 10-month, mostly online, course while at the same time working for businesses and entrepreneurs across the nation.
  • Praxis is designed and administered by professors and business professionals who developed the education modules curriculum. The program meets at the beginning and end of the 10 months and includes weekly discussion topics and monthly oral exams via video conference with a college professor.
  • It's too early to tell whether this type of new education will be the norm or just exist on the peripheral, but organizations are starting to pop up to fill the educational void.

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MICHIGAN CAPITOL CONFIDENTIAL

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