June 2, 2009 | | Leave a comment Several scholars and journalists are now bringing up the idea that higher-education could be the next sector to crumble. This means that smaller colleges might be forced to merge, close, or declare bankruptcy. They have spent too much and are in debt up to their eyeballs, and now with shaky student loans and rising tuition costs, these schools will have a rough ride. Joseph Marr Cronin the former secretary of education in Massachusetts and Howard E. Horton, president of Boston's New England College of Business and Finance co-wrote an article entitled "Will Higher Education Be the Next Bubble to Burst?" Their answer and article stated that, yes, it will burst. These experts explain that the problem with these colleges is that they have been funded by what seemed to be an unending stream of U.S. government backed student-loan money. Another contributing factor is that schools have spent all of their money, despite the continuous increases in tuition fees that institutions have implemented in order to stay ahead of inflation. Some fear the same meltdowns that hit subprime mortgages and dot-com will affect secondary education. However, some say that the higher education balloon has already popped, because many schools are cutting their budgets and staff. Not only have schools been affected by the government's cuts in funding, but also by sharp decreases in donations by contributors. Because of budget cuts, fewer financial resources, and rising tuition, we may feel some of the effects today but the consequences may not really impact us for a few years. Large and prestigious universities will survive, but many small and medium private schools may not. Huge financial pressures are going to be facing these schools, because they rely so heavily on tuition fees. Between tuition and housing, students can expect to pay up to $50,000 a year. These horrendous costs for higher education have forced many students to either graduate with an average of $20,000 worth of debt, or to attend public universities and community colleges. The cost of education is spinning out of control, and it is most likely only going to get worse. Schools are already struggling to make ends meet and without funding from the government and private sector, students may no longer be living in the land of opportunity. Many graduates after graduation expected to find a job right off the bat, but it is a difficult market, and many are still looking. Hopefully they find jobs soon, so they can start paying back their student loans, which will allow more students to get a higher education. All that can be said is what the heck is going on? Schools are supposed to be stable and open for students. One of the best ways for a country's economy to grow and get stronger is by people improving their education. If education can make the economy stronger, then more and more students need to be going, not vice versa. There have already been many government bailouts and they haven't seemed to make much of a difference. The trouble is, what happens if education needs a bailout, too. The government can't keep bailing out every sector, by printing more money and going farther into debt with China. Both the government and private sectors are running out of solutions, and no one knows what the future holds.