The public has become all too aware of the term "bubble" to describe an asset that is irrationally and artificially overvalued and cannot be sustained. The dot-com bubble burst by 2000. More recently the overextended housing market collapsed, helping to trigger a credit meltdown. The stock market has declined more than 30 percent in the past year, as companies once considered flagship investments have withered in value. The authors examine whether higher education will be the next bubble to burst. They discuss some early warnings which suggest that it could be. To keep the bubble from bursting, the authors suggest that colleges can look for more efficiency and other sources of tuition. Colleges can also make productivity gains by using technology and re-engineering courses. The authors state that there are some forces which are at work to help save higher education. Although questions about the mounting prices of colleges have been raised for more than 30 years and just a few private colleges have closed, the stakes and volume of the warnings are mounting. The authors stress that only during a critical moment in economic history can one warn of bubbles and suggest that the day of reckoning for higher education is drawing near.