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Well as we've been talking about staggering new statistics out revealing just how serious the student loan debt crisis is in this country.
It's at the next bubble to burst David -- cool -- future is that heads and author of entering the ship days.
Joins me now with his crystal ball will have a lot of future son David it's great to have you here.
That the pleasure -- how fed as the situation I look at the numbers and I frankly I am astonished.
Every student loan debt in this country it's upper 27000 dollars -- -- gradually into the world and you have almost two or 30000 bucks of debt on your back.
It's almost impossible to get started how bad is.
Well they these student debt is just -- -- part of a larger bubble which is the higher Ed bubble.
In other words you have student debt that's over a trillion I guess this is the sort of talk about trillions.
And you have on the supply side you have university's going deep into debt.
So you've guy a system where the economics are unsustainable.
-- outcomes are questionable.
And the insularity inefficiencies that no longer cut it so if you look at the tech bubble and the real estate bubble this has all the same -- right.
That you know what's really stunning the Wall Street Journal had a statistic a couple weeks ago.
The cost of higher education.
Has gone up four times -- -- -- rate of the cost to living since 2001 and twice that of health.
Care it's absolutely way out front of inflation absolutely true.
And I think you look at what's going on with the colleges is that it's astonishing it's.
It's almost there if -- they're boring to get students so what do they do.
They build out what they offering the you know they they have sushi sushi bar in the lunch -- and they have an Olympic size swimming pool.
All of this costs money -- because the government's involved it's like a blank check the government's involved because the government -- student loans.
And they are willing to write a -- to almost anybody at any time.
How is it possible that you say it's a bubble waiting to burst how with a possible that maybe these institutions can decide on their own to -- spending so much.
Well I I think you know markets correct bubbles right.
And so we have this situation you may have heard of called -- -- Massive open online courses so he'll have a college like at my university like MIT that has all their courses on line.
Well you can -- as parents you can send your child for a quarter million dollars for four years there.
Or maybe take all those courses take the exams pass the exams and maybe for fifteen or 20000 dollars you get a certificate not a -- so.
That's one way I think -- Spending to be brought down another is that if you're a student at a four year institution.
Maybe take some online courses to be able to get out in the three year -- so you've saved 25% of the total costs.
They're all kinds of ways to sorted cheated the margin -- those.
Those virtual degrees this degrees online.
Have have don't have an -- an incredible amount of credibility at this time.
The Watson of that criticism.
Of these programs do you think they're gaining credibility especially when you have people.
Like -- getting into the ball game.
Well that's the exact different see you don't have choices you have.
Ivy League you have Stamford you have MIT and they're getting in putting the best professors in the world so if you think about a business model.
They can only -- say a few thousand people here.
That whatever it is fifty or 75000.
But they could sell it at 101000 dollars to a 100000 people around the world and that's what can activity will do.
Now let the marketplace decide where the U where do you want to hire somebody whose path.
That certificate or spent four years getting socialized on campus.
-- David thanks for coming on tonight the book is called entering the shift age thanks so much for spending time with -- fascinating topic I agree with you completely.
It's bubble waiting to burst thank you -- glad thank you for having me I appreciate it.
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