Education is a bubble in a classic sense. To call something a bubble, it must be overpriced and there must be an intense belief in it.His fellowship plans to "select 20 college students under the age of 20 and pay them $100,000 each to drop out of college and embark on entrepreneurial careers."
Like housing was, college is advertised as an investment for the future. But in most cases it’s really just consumption, where college is just a four-year party, in the same way that buying a large house with a really big swimming pool, etc., is probably not an investment decision but a consumption decision.
[W]e’ve looked at the math on this, and I estimate that 70 to 80 percent of the colleges in the U.S. are not generating a positive return on investment.
The education bubble
I really like what Peter Thiel has to say about education: