The education bubble has nothing to do with the rich. It’s entirely a middle class phenomenon—a wealth transfer from young middle class people to older middle class people (professors and administrators). To the extent that state colleges aren’t more heavily tax subsidized, again its primarily the fault of the older middle class. (The biggest difference between US and European tax rates is for the vast middle class. Rich Germans pay somewhat more in taxes than rich Californians. Middle class Germans pay twice as much or more.)