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Mark Cuban Warns A Housing Bubble-Like Crash Is Coming To The Student Loan Business

Mark Cuban thinks colleges are going to go out of business.

In a clip on Inc.com , Cuban talks about the student loan bubble, which he says will burst and end badly for colleges.

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."

Cuban also talks about the impact student loan debt is having on the economy, saying that people burdened with student loans can't afford to spend money on anything other than the bare necessities.

There are a number of problems with the increasing cost of college both for the colleges themselves and the broader economy.

Cuban's specific call for a cap on student loan guarantees, and a subsequent collapse in tuition prices, portends an ugly future for colleges in the U.S.

The full clip of Cuban can be seen here.



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