By Tyler Durden | 28 October 2020
ZERO HEDGE — Fall enrollment has plunged, some colleges are shuttering operations, revenues across the entire higher education industry are collapsing, and the shift from physical to virtual education due to the virus pandemic could prick the next bubble: the student housing debt market.
Our warning about the coming implosion of the higher education industry (see here from 2014), as a whole, has become louder and louder over the last six-plus years as the student debt bubble has recently swelled to more than $1.6 trillion. Years ago, no one at the time, could’ve forecasted a virus pandemic would doom colleges and universities.
Credit rating agency Moody’s recently downgraded the entire higher education sector to negative from stable, and the American Council on Education estimates colleges and universities will experience a $23 billion decline in revenues over the next academic year.
Bloomberg outlines the increase of virtual education in a virus pandemic has resulted in an abundance of empty dorms at colleges and universities, creating a $14 billion headache for the student housing debt market. […]
Let them all tank. The University deans and administrators I’ve met over the last 25yrs are pretty quick to tell you they’re the smartest in the room and are not shy about demanding huge pay packages. The best run organizations will survive and absorb the students displaced. It’s how our economic system is supposed to work ! But, because they’ve been doing the leftists bidding, they’ll get bailouts, and we’ll (taxpayers) get the tab.