Are charter schools the new subprime loans?

By Valerie Strauss

January 4, 2016

Excerpt: “There is an intense push to increase the number of charter schools in Black, urban communities, where they’re very popular because of the dissatisfaction with traditional public schools. Because of this desire for more educational options, these communities are more likely to support policies that could lead to charter school bubbles forming. In fact, I would argue that we are at “ground zero” for the formation of such bubbles. Supporters of charter schools are using their popularity in black, urban communities to push for states to remove their charter cap restrictions and to allow multiple authorizers. At the same time, private investors are lobbying states to change their rules to encourage charter school growth. The result is what we describe as a policy “bubble,” where the combination of multiple authorizers and a lack of oversight can end up creating an abundance of poor-performing schools in particular communities.” – Preston Green

See Green et al.’s study here: Are We Heading Toward a Charter School ‘Bubble’?: Lessons from the Subprime Mortgage Crisis