Yesterday Bloomberg published fresh data that foretells the coming burst of the higher education bubble. The new numbers, which are based on recent ratings by Moody's, show a significant drop in enrollment in dozens of colleges. According to Bloomberg:
Moody's, which rates more than 500 public and private nonprofit colleges and universities, downgraded an average of 28 institutions annually in the five years through 2013, more than double the average of 12 in the prior five-year period.
Dozens of schools have seen drops of more than 10 percent in enrollment, according to Moody's. As faculty and staff have been cut and programs closed, some students have faced a choice between transferring or finishing degrees that may have diminished value.
Recently, Reason TV sat down with Glenn Reynolds, professor of law at the University of Tennessee, founder and editor of the popular Instapundit blog, and author of the book The New School: How the Information Age Will Save American Education from Itself, to talk about the state of higher education.
Reynolds maintains that the contraction of the higher education bubble is already happening and says he currently sees the effects in his field of legal study as lower enrollment numbers have forced law faculties to trim staff. If the latest numbers from Bloomberg are any indication, things in higher education are about to get a lot worse before they get better.