First, a college education costs too much. Middle-class families can no longer afford tuition that increases faster than inflation, per capita personal income, consumer prices and even health insurance. Total student loan debt in America is $1 trillion and exceeds credit card debt. Taxpayer money stretches only so far, with health care, public safety and K-12 education claiming ever larger shares of state budgets.
Second, the higher education industry is undergoing a complete restructuring. Technology is fundamentally altering how courses are created and taught while upending the cost structure of delivery. New entrants – from for-profit white-label degree providers like 2tor to nonprofits like Khan Academy – are bringing disruptive innovation.