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Actually there's a pretty simple way. Start a guaranteed tuition plan. Parents can pay you today's tuition cost for their child to go to college in 5-18 years. If higher education drops then you make money. If they continue to go up, then you lose money.

You probably need to set aside a pretty sizable chunk though in the very possible scenario that college costs continue to rise.

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Wouldn't you want to take the opposite trade? To guarantee someone else's tuition at a flat rate (or a flat rate plus interest) and then pay for their classes at the market rate once they get to school?

That's what he said. The parents would pay you a flat rate (today's tuition) and you would pay their kid's tuition 10-15 years from now. Assuming the bubble burst before then, you would make the difference in price between today's tuition and the tuition of the future.

Yes, you're right; I misread it. Thanks!

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