The billionaire owner of the Dallas Mavericks says America’s colleges are in serious trouble and that over a trillion dollars in student loans will put many of them out of business.
For years, the federal government has been subsidizing loans, much like they did with houses ahead of the 2008 crash. This has led to increased tuition costs and lending to individuals who will more than likely never be able to pay back their student loans. The end result, according to Mark Cuban, will be a bursting of the debt bubble, a significant drop in college tuitions, and an outright collapse of America’s institution of higher learning:
College tuitions have exploded because of easy money guaranteed by Sallie Mae. So, if any student can borrow more and more money, and it’s guaranteed by the federal government, why wouldn’t the colleges take it all?
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