It seems that the higher ed bubble is bursting. There's no way that that private universities can survive when their faculty don't actually teach classes. The public colleges are in trouble, because the money isn't coming from the state capital anymore. I've heard that community colleges are actually doing well, but my sources who teach in community colleges have said that it's tough there, too.

Several academic bloggers have been writing about how higher ed can become viable again.

Tyler Cowen writes, "But the very best teachers of the future will take on an increasing
role as editors, collage creators, and DJs.  A brilliant scientist who
doesn't understand YouTube will be crippled as a teacher.  Adjuncts may
lead the wave of innovation here."

Tim Burke writes, "The real crunch points will come from one of two major decisions:
either cutting or amending need-blind admissions on one hand, or
eliminating current positions on the other."

Either way, there's going to be a lot of PhDs selling jewelry on Etsy, soon.