Coping with a Higher Education Cost Spiral
The cost of college has risen so high that more than half of Americans no longer think a college education is “worth it.”
We have reached the point where the cost of a four-year degree will likely be the second-largest expenditure in your lifetime, second only to your house. Students are literally mortgaging their futures to pay for college.
The questions surrounding the heavy burden of education loans and skyrocketing college costs are important, but they are directed at symptoms.
Colleges today are experiencing falling enrollment. They’ve created their own crisis. What happens next for higher education, and how should prospective students and their parents weigh their options? These are the topics of this week’s Global Macro Update.
Economist Gary Shilling joins us with his thoughts on the cost of higher education and alternatives to the college track.
Gary is a veteran analyst, so be sure and watch through to the end of our discussion as Gary weighs in on the Fed, interest rates, stocks, and bonds.
In this week’s interview, Gary and I discuss:
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How colleges have created their own dilemma because of their “price discrimination” financing model.
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Why over half of Americans think college is not worth the cost.
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The rise of the apprenticeship model as a way to achieve personal economic advancement.
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The link between rising college costs and the college services arms race.
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Why the middle class is shouldering the heaviest long-term cost burdens of paying for college.
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The serious questions to ask yourself before you commit to the costs of college.
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In the markets, the economy is slowing—whether we’re currently in a recession or not—and that hasn’t been completely reflected in stocks.
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How weakness in corporate sales and profits should trigger the next stock market decline—the bear market process is not complete.
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Why you should keep your eye on employment.
You can watch our interview on YouTube by clicking the image below. On your way in, please don’t forget to subscribe to our channel.
A full transcript of our conversation is available here.
If you prefer audio, search for “Global Macro Update” on your favorite podcast service.
Dr. Shilling is president of A. Gary Shilling & Co., Inc. The company offers consulting and investment advisory services. It uses a "top down" approach with emphasis on the major themes—developed from economic, financial, and political analysis—that will influence business and financial markets in the short and long runs.
Gary writes a monthly newsletter called INSIGHT. You can sign up to receive his newsletter here.
Thank you for joining me this week at Global Macro Update.
Best regards,
Ed D’Agostino
Publisher & COO
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