I don't think the college system will "fall apart". Great universities existed in the US even before the recent education bubble.
I do hope more young Americans realize the magnitude of obligations that they commit themselves into though. I've heard many stories of students enrolling in an expensive arts degree and then dropping out later as they realized just how much they would owe at the end of 4 years.
I don't even think the system would fall apart as is. We'd just see people looking more seriously at community colleges and other options that have better value for cost.
Or at least they'd be looking at different ways of financing college that didn't leave you with an incredible debt burden that prevents you from establishing a reasonable rate of savings.
"Great universities existed in the US even before the recent education bubble."
Great universities are a tiny minority, and you're right -- they'll likely be fine. Likewise the local community colleges that focus on teaching and job skills.
The Southeast Directional States, on the other hand, are in big trouble.
I do hope more young Americans realize the magnitude of obligations that they commit themselves into though. I've heard many stories of students enrolling in an expensive arts degree and then dropping out later as they realized just how much they would owe at the end of 4 years.