The Motley Fool, a financial analysis company, recently interviewed Blackboard CEO Michael Chasen as part of a series on the education industry. In the first installment of this series, Chasen discusses the so-called education bubble that has formed with recent rises in both the cost of and demand for higher education. Chasen explains that technology can serve as a counterweight to the high costs and high demand that are putting pressure on the current education market. Since technology lowers barriers to offering education, he argues, institutions are able to increase output to meet these surges in demand.
Interestingly, Chasen states that for-profit institutions play an important role in this education technology trend. He believes that professional colleges and universities serve as an alternative to more traditional institutions for many of those who are seeking higher education. Chasen then argues that for-profit institutions often adopt new technologies faster than their traditional counterparts, which helps them further meet the rising demand for education. Will this education bubble ultimately burst? Chasen doesn’t think so, and optimistic that technology will play an important role in easing us out of the bubble. He concludes by saying: “There’s a chance that with the technology and with the investment that’s being made today, maybe we can successfully bring down that cost of education and also expand the net to the amount of people who can go through the education system. That’s the part that Blackboard plays in this ecosystem.” To read the article, “Will the Education Bubble End Badly?” and to view the interview in its entirety, click the image below: