What are your thoughts on reports like Academically Adrift and the national $1 trillion student loan burden?
I'm beginning my preliminary investigation into SLABS...the packaged securitized student loan thingy for investors.
The educational finance model permits real compound growth with respect to student loan debt. This is then passed on to colleges and universities in the form of real compound growth in tuition with students taking on the risk of paying this money back.
Put simply, colleges and universities increase tuition faster than inflation. We all know this. Everyone complains about it. But nothing ever happens.
Colleges and Universities use the compound tuition growth model to ratchet up costs, year after placid academic year, with no discernable improvement in anything except massive resort-type facilities for students. However, this idiotic system has never come face to face with a major economic paradigm shift before.
The fuse for the coming major discontinuity in the world of educational finance has been lit.
