Monday, July 25, 2011

The Education Bubble Is Primed For Popping

When students shell out a six figure income for a low five figure job, something needs to give.

Glenn Reynolds weighs in.

A New York Times profile last week described Courtney Munna, a 26-year-old graduate of New York University with nearly $100,000 in student loan debt -- debt that her degree in Religious and Women's Studies did not equip her to repay. Payments on the debt are about $700 per month, equivalent to a respectable house payment, and a major bite on her monthly income of $2,300 as a photographer's assistant earning an hourly wage.

And, unlike a bad mortgage on an underwater house, Munna can't simply walk away from her student loans, which cannot be expunged in a bankruptcy. She's stuck in a financial trap.

Some might say that she deserves it -- who borrows $100,000 to finance a degree in women's and religious studies that won't make you any money? She should have wised up, and others should learn from her mistake, instead of learning too late, as she did: "I don't want to spend the rest of my life slaving away to pay for an education I got for four years and would happily give back."

Four years, a degree that would pay off squat and a grand in debt. Just starting out in life.

Maybe Underwater Basket Weaving would have been a better choice.

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