Billionaire businessman Mark Cuban says Hillary Clinton’s plan to curb growing student-loan debt will actually make attending college more expensive.
“[Hillary’s plan] stands a better chance of increasing the amount of money students owe than decreasing it,” Cuban said on his Cyber Dust app on Friday.
“Just as easy money led to the real estate bubble a few years ago, the easier it is to borrow money for college the easier it is for colleges to raise tuition. Tuition keeps going up because no matter how high they raise it, students can still borrow more to pay for it,” Cuban continued.
Cuban, who stars on ABC’s “Shark Tank” and owns the Dallas Mavericks, has for years warned of a “student loan bubble.”
“At some point, it’s going to pop,” Cuban told Business Insider in March.
Mark Cuban: Forgiving student loans is ‘bailout’ for universities
March 13, 2015
Victor Skinner
DALLAS – Dallas Mavericks owner and billionaire investor Mark Cuban is waving red flags at higher education, and he’s arguing against the idea to forgive student debt amid the current “student-loan bubble.”
“Forgiving the debt is the worst thing you can do, because all it does is bail out the universities,” Cuban recently told Business Insider.
Cuban’s comments come a week after Sweet Briar College announced it will close following the spring 2015 semester “as a result of insurmountable financial challenges,” according to the news site.
The closure is the latest in what Cuban calls a “student loan bubble” brought on by a cycle of ever-increasing tuition and student loans. Cuban, who bought collegedebt.com to keep tabs on student loan debt, believes it’s simply a matter of time before the benefits of higher education are outweighed by the costs.
“What you thought you were going to get in quality of life by going to that college,” he told Business Insider, “you’ve just undermined with the amount of debt you’re taking on.”
Collegedebt.com shows student loan debt in the United States currently totals about $1.3 trillion.
Cuban told Business Insider that an initiative laid out by President Obama this week to help students with federal student loans may have some merit, but cautioned against a college debt bailout.
“Anything that causes lenders and service companies to act fairly is a good thing,” he said. “The challenge is that you can’t subsidize or forgive existing debt without very strict rules. Otherwise it allows schools to tell future students not to worry. They too will get some portion forgiven. Which in turn gives the school more leeway to raise tuition.”
Cuban said he thinks a bailout would only exasperate the current situation.
After news of the Sweet Briar College closure last week, Cuban tweeted “this is just the beginning of the college implosion.”
“At some point,” he said, the student loan bubble is “going to pop.”
Cuban told Inc.’s GrowCo conference last year that if he was “running the economy, I’d go and say, ‘Sallie Mae, the maximum amount that you’re allowed to guarantee for any student in a year is $10,000, period, end of story,’” according to Business Insider.
“There’s all kinds of things that have been proposed to reduce existing student debt,” he said. “At some point, there’s got to be legislation where we put a limit on how much you can take out on a loan.”
Cuban: FCC Net Regs Will Spill Over, ‘TV As You Know It Is Over’
Dallas Mavericks owner and investor Mark Cuban predicted that proposed FCC Internet regulations will end up impacting TV and “your TV as you know it is over” on Thursday’s “Squawk Alley” on CNBC.
Cuban began by predicting “the courts will rule the Internet for the next however many years.” He then explained, “let’s just take it all the way through its logical conclusion. All bits are bits, all bits are equal. If all bits are equal, then let’s look at what a stream bit is an example. So when Henry and I do an interview, and it’s streamed lived on the Internet, there’s a camera, it goes through an encoder, it sends it out via server or some manner to the Internet, you click on Business Insider and you watch the stream, right? Now, let’s look at CNBC on Comcast. There’s cameras right in front of you, they go through a switcher, they go through an encoder, it’s put through a server, it goes to Comcast, and it’s streamed in a managed service environment to television. It’s the exact same thing. And if it’s the exact same thing technologically and all bits are equal, then why shouldn’t CNBC and all TV networks that are delivered on cable, and Telco, and fiber like Verizon, why shouldn’t they be part of the open Internet as well? And if they are and all bits are equal, now, let’s take it one step further. It’s the purview of the FCC now. The FCC, right? So, the FCC now has to apply their same standards to content, don’t they, that they do to television content because that’s where it is and there’s going to be certain citizens who think ‘well now, since all content is delivered over the Internet because all bits are bits, and it’s a fair, and open, and equal Internet — decency standards.’ And remember the FCC is the same agency that fought Nipplegate for eight years over a wardrobe malfunction.”
Mark Cuban on Net Neutrality: “The Government Will Fuck the Internet Up”
Nick Gillespie|Nov. 13, 2014 11:35 am
Entrepreneur, NBA team owner, and Shark Tank star Mark Cuban has this to say about Net Neutrality and the push to regulate the Internet under Title II of the Telecommunications Act:
“The government will fuck the the Internet up.”
He also writes in an email exchange with Business Insider (all typos in originals):
“Since when have incumbent companies been the mainstays for multiple generations?”
[Cuban] believes that startups blow up older companies despite an unregulated internet that allows internet providers to prioritize certain traffic streams.
Overall, he thinks the current debate is too narrow and short sighted.
“There will be so much competition from all the enhancements to wireless that incumbent ISPs will have to spent their time fighting cord cutting,” he said.
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