02 February 2012

Additional Proof of the College Bubble

From the Grey Lady:

Claremont McKenna College, a small, prestigious California school, said Monday that for the past six years, it has submitted false SAT scores to publications like U.S. News & World Report that use the data in widely followed college rankings.
In a message e-mailed to college staff members and students, Claremont McKenna’s president since 1999, Pamela B. Gann, wrote that “a senior administrator” had taken sole responsibility for falsifying the scores, admitted doing so since 2005, and resigned his post.

In what I’m sure is just coincidence, the current college bubble has another thing in common with the recent housing bubble:  fraud.  Not only are there skyrocketing costs, plenty of federal subsidies and incentive distortions, but now we have fraud as well.  I’m not sure the case that college education is a bubble can be made any clearer.

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