10.13.2014

Mark Cuban: Student Loan "easy money" creating a bubble




Limit student loans to improve economy
Excerpt:


The best way to fix the student loan bubble is to limit the allotted amount of loans each student is allowed to receive each year to no more than $10,000, Cuban said, adding that a cap on student debt would force universities to lower tuition and curb spending. Rising tuition costs don't help the economy as much as increasing students' purchasing power-a college may just use the extra cash to "build a better fitness center at your school." Tuition revenue is "just easy money and easy money goes to a college administrators' head just as much as anybody else, Cuban said on CNBC's "Squawk on the Street" Monday. Anytime you create easy money, you're gonna create a bubble or inflation and that's what's happening with college tuition, Cuban said.
Comment: Image source. EZ student loans inflates tuition, makes slaves out of students, hurts the housing market and the economy.A related article - Major Debt Shift for Millenials

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