Mark Cuban: This Is Just The Start Of The College Implosion

There's a growing education bubble, according to Cuban

“Debt ultimately will outweigh most of the potential benefit you’re getting from the college education, Cuban said. “What you thought you were going to get in quality of life by going to that college, you’ve just undermined with the amount of debt you’re taking on.”

 

After 114 years, Sweet Briar College revealed this week that it would close after the spring 2015 semester, an abrupt announcement that shocked students, alumni, and many people active in higher education.

One person not surprised by Sweet Briar’s news was Mark Cuban, the entrepreneur and billionaire investor. For years, Cuban has been warning of a “student loan bubble,” which he says will soon burst and leave many schools suffering.

On Tuesday, after Sweet Briar made its announcement, Cuban tweeted “This is just the beginning of the college implosion.”

“As this little college saw, there will be other students that get their heart set on one college, and it won’t be there when they graduate,” Cuban said in an interview with Business Insider.

There’s a growing education bubble, with rising tuition and students taking out loans they might not be able to pay back, according to Cuban. “At some point,” he added, “it’s going to pop.”

“When you’re 18 years old and you don’t really understand all the nuances of what it’s going to cost to pay something back — it was almost inevitable,” Cuban said.

A few years ago, Cuban bought the domain “collegedebt.com,” which publishes a live update of how much college loan debt is held by students. The total is just over $1.3 trillion.

This debt ultimately will outweigh most of the potential benefit you’re getting from the college education, Cuban said. “What you thought you were going to get in quality of life by going to that college, you’ve just undermined with the amount of debt you’re taking on,” Cuban said.

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