This post serves as an update to these two previous posts on the higher education bubble, and the increasing cost of education. Here’s a chart I found a few mornings ago that you should analyze closely if you’re following these topics.
Specifically, take a look at the red line on this recently released graph from DoubleLine Funds:
(data from the Bureau of Labor Statistics, Consumer Price Index)
Everyone seems to dwell on the cost of oil, what about the rising cost of college? Why isn’t this a bigger issue? Education costs are outpacing the inflation of the cost of a new car by over a multiple of 10!
This trend simply isn’t sustainable and it’s a clear indication that the value of a college degree is going to “crash” at some point in the future.