Mark Cuban: ‘The Student Loan Bubble Is Going To Burst’

Student Loan Debt

The end of the student loan bubble, Cuban says, will be like the housing bubble, where tuition collapses the way the price of homes collapsed.

These collapses will put colleges out of business.

Cuban:

“It’s inevitable at some point there will be a cap on student loan guarantees. And when that happens you’re going to see a repeat of what we saw in the housing market: when easy credit for buying or flipping a house disappeared we saw a collapse in the price housing, and we’re going to see that same collapse in the price of student tuition, and that’s going to lead to colleges going out of business.”

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1 thought on “Mark Cuban: ‘The Student Loan Bubble Is Going To Burst’”

  1. When I was growing up, college was the future. That was the way to go to get a good job. Well that is not true, nor was it ever true for the average person out there. There are brilliant people out there and industry does want to scoop them up into a fast run to management.
    We are talking about the average, every day person not that genius level person.
    So where does that leave the rest of us?
    Economics 101. Do not go into debt for any reason. Not easy to do. If you are debtor then you are basically a slave to those you owe the money.
    Economics 101. Every loan that you have results in you having a lower standard of living long term.
    If I had it to do over again, I would still fight to become an apprentice and learn a trade that would earn me a good living throughout my life rather than go to college. College is an option. But it is not the only option.
    The rough and tough way is to learn a skill everyone wants and if possible own your own business.
    To do that it is necessary to work for someone else that knows the business and not compete with them in their territory.
    I suggest working for that person for at least 4-5 years and learn everything there is to know about the business you want to run.
    In today’s world, that is a rough path to follow. It takes a lot to manipulate your life to do so.
    Never, ever, depend on one avenue in life. Know at least two skills that the public wants and is willing to pay you to do it. I would make it 3 if that were possible.
    The largest expense in my life is where I was weak in talent. That is owning and repairing a car. A lot of people make this mistake. When I was growing up mechanics were a dime a dozen. Now they go to tech school, work for dealers, and the public pays $90 an hour for their services.
    Body work is at a premium. People will always wreck cars and need them trashed or repaired.
    On the average, I was able to keep a car running for about 5 years. I learned certain brands were engineered to fail in 3 years.
    Plumbers will always have a job. My local plumber works for Lowes. Why? Benefits from a corporation are always better than he can afford for himself. He does plumbing and is licensed on the side.
    Economics 101. You will likely spend anywhere from 10 to 16 hours a day working for a living. I count time to and from work, lunches, and everything else. Most people take whatever they can get in the way of work and hate it. It is basically a form of prostitution when you rent yourself out to do things you hate to do.
    Don’t do it. Instead figure out what you enjoy doing then make your living doing it. Now that is a huge accomplishment. It is not easy to choose not to do something for more money and do something that you enjoy doing in life. But think about it. At least 1/3 to 1/2 of your life is going to be earning a living one way or another.
    A lot of people choose not to work at all. Instead they are basically their own boss. I know both men and women that choose to be the support person for the person working. That doesn’t mean they do not work. It means they choose to support the person that is making the money instead. One man I know is the support person for 2 women in his life. He is a competent nurse. He keeps house. He keeps the women working in his life in a nice home and cooks all the meals. Cleans the kitchen and does every bit as much work as either woman.
    He keeps the yard up. He basically washes and cleans the floors and does the laundry. He works all right. But the one woman owns the home. She has a masters in pharmacy science. The other is his wife. She is getting her masters and has one in social science and counselling. She is also a pharmacy assistant.
    The woman that owns the home had a debilitating disease. She was given the option of going into a nursing home while she slowly died. She made a good deal with this man and his wife. That was ten years ago. She is still going strong because of the support system he provides for both of them.
    My point is they thought out side of the box and it worked.
    I know many people in my life that became millionaires. That is right, they became rich. MY company did an article on them. They all had one little thing in common. They took a break in salary to do something that they loved to do instead of working at something that they hated to do.
    Sounds simple. But it is the most difficult decision they ever made in their lives.
    The Bible is a user’s manual. In that book, there are many good advice things that we can all learn from.
    I suggest you go to proverbs. If you follow the rules in proverbs your chances of a happy life are just about 4 times what they would be if you don’t. Has absolutely nothing to do with religion. It has everything to do with making the right decisions and avoiding mistakes.
    We all make huge mistakes in our lives. I am no exception. But that little book has more to say about making success in life than any other influence in my life.
    Those colleges deserve to go broke! They are influencing people to make very poor life decisions in the interest of their profit margin.
    Until that changes if it ever does, I suggest you take anything that they say with a great deal of questioning their wisdom. How much are these over-educated teachers making in the way of salaries in their own lives? Some are making a lot of money. A lot are making starvation wages themselves. Are they advising debt as a way of getting their education? Go elsewhere.

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