Tim Cavanaugh has the latest on this trend, as he examines the most recent student aid report from the College Board. The outlook is dismal:
Student loan defaults are up. Graduate performance in the job market is down. Bankrupt states are unable to keep public university employees in the style to which they've grown accustomed...The higher ed bubble is undoubtedly reaching its breaking point because of the economy, but as Cavanaugh points out, faulty education policy is even more responsible for the problem. In his words, "Uncle Sam is the inflationist in chief."
Yet for-profit colleges are booming, and their students are pulling down ever greater sums in federal grants and guaranteed loans.