The paradoxical effect of the full-recourse [student] loans is that banks are happy to provide almost unlimited funding to a slice of society rich in ill-conceived ideas.
. . .
As if the debt burden was not enough, potential employers are checking credit reports. High student debt can render you unemployable.
. . .
An entire generation has been set up for debt servitude. We are eating our young. The source of the problem is a complex and nuanced confluence of factors. The chronically profligate boomers, stressed by inflationary pressures and dazed by the equity and real estate downturn, are in no position to help their kids pay for college.

2012 Year in Review: Free Markets, Rule of Law, and Other Urban Legends, by David Collum

MRUniversity

In fifty years, if not much sooner, half of the roughly 4,500 colleges and universities now operating in the United States will have ceased to exist. The technology driving this change is already at work, and nothing can stop it. The future looks like this: Access to college-level education will be free for everyone; the residential college campus will become largely obsolete; tens of thousands of professors will lose their jobs; the bachelor’s degree will become increasingly irrelevant; and ten years from now Harvard will enroll ten million students.
. . .
Why, after all, would someone pay tens of thousands of dollars to attend Nowhere State University when he or she can attend an online version of MIT or Harvard practically for free?

This is why those middle-tier universities that have spent the past few decades spending tens or even hundreds of millions to offer students the Disneyland for Geeks experience are going to find themselves in real trouble. Along with luxury dorms and dining halls, vast athletic facilities, state of the art game rooms, theaters and student centers have come layers of staff and non-teaching administrators, all of which drives up the cost of the college degree without enhancing student learning. The biggest mistake a non-ultra-elite university could make today is to spend lavishly to expand its physical space.

The End of the University as We Know It

Somehow, recently, a lot of people have taken an interest in the broadcast of canned educational materials, and this practice — under a term that proponents and detractors have settled on, massive open online course (MOOC) — is getting a publicity surge. I know that the series of online classes offered by Stanford proved to be extraordinarily popular, leading to the foundation of Udacity and a number of other companies. But I wish people would stop getting so excited over this transitional technology. The attention drowns out two truly significant trends in progressive education: do-it-yourself labs and peer-to-peer exchanges.
. . .
There’s a popular metaphor for this early stage of innovation: we look back to the time when film-makers made the first moving pictures with professional performers by setting up cameras before stages in theaters. This era didn’t last long before visionaries such as Georges Méliès, D. W. Griffith, Sergei Eisenstein, and Luis Buñuel uncovered what the new medium could do for itself. How soon will colleges get tired of putting lectures online and offer courses that take advantage of new media?

Two more appealing trends are already big. One is DIY courses, as popularized in the book Fab by Neil Gershenfeld at the MIT Media Lab. O’Reilly’s own Make projects are part of this movement. Fab courses represent the polar opposite of MOOCs in many ways. They are delivered in small settings to students whose dedication, inspiration, and talent have to match those of the teacher — the course asks a lot of everybody. But from anecdotal reports, DIY courses have been shown to be very powerful growth mechanisms in environments ranging from the top institutions (like MIT) to slums around the world. Teenagers are even learning to play with biological matter in labs such as BioCurious.

Fundamentally, DIY is a way to capture the theory of learning by doing, which goes back at least to John Dewey at the turn of the 20th century. The availability of 3D makers, cheap materials, fab software, and instructions over the Internet lend the theory a new practice.

The MOOC movement is not an indicator of educational evolution

massive open online course (MOOC) – Wikipedia