Infographic: Is Higher Education the Next Big Bubble?

January 26, 2012Education Industryby EW News Desk Team

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Getting into a good university is not an easy feat. Securing a job upon graduation, in the current economic climate, is not easy too. However, the biggest challenge for most university graduates is paying off their education loan. It may sound preposterous that some have called higher education the next big bubble. Hardly surprising: The sum of student debt stands higher than credit card debt across the United States.

In 2011, Peter Thiel, co-founder of PayPal, venture capitalist and part of Facebook board of directors, warned that higher education was a bubble waiting to burst.

According to Thiel, the imminent higher education bubble bears striking similarities with the precedent technology and housing bubbles. Comparing universities to commercial markets, higher education is a major investment with poor payouts (job crisis) and market failure, leading some to question how much they have overvalued higher education in America.

The higher education bubble may not have reached a crisis point yet, but it deserves more research and attention. Read the following infographic, which compares the higher education bubble to the housing bubble, and decide for yourself.   

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