DailyMarkets.com - Administrative Bloat And Higher Education Bubble

Administrative Bloat And Higher Education Bubble
Historically High Housing Affordability Will Play A Major Role In The Housing Rebound This Year
Robert Reich On The Higher Education Bubble

Administrative Bloat And Higher Education Bubble

Posted: 20 May 2012 08:36 AM PDT

The post below originally appeared in January, and I feature it again today because it highlights one of the reasons that the higher education bubble might be unsustainable: Much of the increased cost of college tuition has gone to fuel an expansion in college administrators, what some have called “administrative bloat” or even “administrative blight.”

From an open letter to President Obama on December 16, 2011 from University of Michigan President Mary Sue Coleman:

“Higher … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Historically High Housing Affordability Will Play A Major Role In The Housing Rebound This Year

Posted: 20 May 2012 08:04 AM PDT

The chart above shows one measure of housing affordability over time by displaying the monthly mortgage payments (adjusted for inflation) for a median-priced new home (Census data here) financed at the prevailing 30-year mortgage rate in each month back to January 1978, assuming a 20% down payment. Payments today for a $234,500 median-price new home purchased in March with a 20% down payment and a 3.95% fixed-rate 30-year mortgage would be $890.23. Average monthly mortgage payments … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Robert Reich On The Higher Education Bubble

Posted: 20 May 2012 07:32 AM PDT

Robert Reich, “The Commencement Address That Won’t Be Given”:

“Outstanding student debt now totals over $1 trillion. That’s more than the nation’s total credit-card debt.

The extraordinary rise in student debt is due to two related facts: the cost of a college education continues to increase faster than inflation, and state and local spending per college student continues to drop — this year reaching a 25-year low.

But this can’t go on. If unemployment stays high for many years, if … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards