THE cab driver boasted that his daughter had just graduated. But then he admitted that her journalism degree from the University of Wisconsin had cost $140,000. Since journalism is an ill-paid job that requires no formal qualification, this sounds like a waste of money.
Barack Obama worries that too few students are getting value for money from college. Graduates earn more than non-graduates, of course, but how much of this is because they were cleverer to begin with, rather than because college stretched their minds or taught them something useful? The average American graduate finishes college with $26,600 of debt; some with far more (see article). The proportion of student loans at least 90 days in arrears has risen from 8.5% in 2011 to 11.7% today. Many graduates are struggling.