There are a lot of four year colleges that have also expanded far beyond their capacity to provide quality education. The collapsing employment market has exposed the serious weakness of these toilet colleges. This lower level of colleges and universities is about as bad as the law schools. Graduate from one of these colleges and go to law school and you have gone from the frying pan into the fire.
Dalton State College Student Debt
More than 5000 students take classes at Dalton State College.
According to the Market Watch report from the Wall Street Journal, 21% of Dalton State students defaulted on federal student loans in the last few years.
Carol Jones of Student Financial Aid passionately defends her school and students, citing a number of reasons to for the high rate of defaults.
Read More Link: http://www.wdef.com/news/story/Dalton-State-College-Student-Debt/Wwx-QssFUUK6sC0bmGLggA.cspx
The education bubble is going to take colleges like Dalton State when the herd is culled. A bubble worth calling a bubble is going to take 20-35% of the herd. Just like a viral disease ravages a parcel of hogs, these colleges are about to be ravaged. The piggies feeding at the trough have contaminated each other with corruption through lobbying, feeding from easy government money, and laying in bed with the bankers. As soon as they realize they are sick they will simply lay down and die, like swine in a muddy lot.
Just to size up the herd here is a blurb from Wikipedia: The United States has a total of 4,495 Title IV-eligible, degree-granting institutions: 2,774 4-year institutions and 1,721 2-year institutions, an average of more than 115 per state. As of 2010, the US had 20.3 million students in higher education, roughly 5.7% of the total population. About 14.6 million of these students were enrolled full-time.
The Feds will try to prop up these colleges in "too big to fail" fashion. Once prospective students figure the scam out and develop some alternatives there will be nothing to prop up these schools except the government. Whether the colleges can be propped up with declining enrollments remains to be seen. As some point prospective students have to come to the realization that a four year degree doesn't make much sense.