Posted on 03/11/2015 8:18:51 AM PDT by SeekAndFind
After 114 years, Sweet Briar College revealed last week that it would close after the spring 2015 semester, an abrupt announcement that shocked many in the world of academia.
"This is just the beginning of the college implosion," Mark Cuban tweeted last week, after the news about Sweet Briar, an all-women's college in Virginia.
Cuban, the well-known entrepreneur and billionaire investor, was not surprised by the news. For years, Cuban has warned of a "student loan bubble" created by skyrocketing tuition fueled by an endless supply of student loans.
"At some point, it's going to pop," Cuban told Business Insider in a recent interview.
Here's how to fix the bubble, according to Cuban. Congress needs to pass a law that caps the amount students can take out from private student lenders. That would be more useful than focusing on students' current debt, he said.
"There's all kinds of things that have been proposed to reduce existing student debt," Cuban told Business Insider. "At some point, there's got to be legislation where we put a limit on how much you can take out on a loan."
To be sure, the federal government does put strict limits on the amount of money college students can take out in federally subsidized loans. Typically, dependent undergraduate students can only take $31,000 at most in federal student aid for all four years of college.
However, the federal government doesn't cap the amount of money students can take out from private lenders. Many private lenders set their own caps at a student's "cost of attendance" for attending college, minus all other aid the student received — which can still top $100,000 for four years of school.
Private loans also lack some of the benefits of loans backed by the federal government.
(Excerpt) Read more at businessinsider.com ...
they borrowed the money...if they overextend, whose fault is it?
The medical issue is under nearly the same situation. Karl Denninger writes extensively on it. As he points out, that industry is protected from providing price discovery and operating under market forces by exemptions from anti trust and collusion laws.
If the medical industry had to compete under the same rules as any other business, it would essentially cost little more than the inflation adjusted price for most everything today compared to what it was 50 years ago. You used to be able to pay for loads of procedures out of pocket for 80%+ people and not be broke, and now those same things would sink you if you weren’t “insured”.
If a market is screwed up, the first place to look for the cause is government...
Yes the whole medical mess started during WW2 with using medical “insurance” benefits to circumvent wage controls.
Once you separate the payer from the service, prices are guaranteed to inflate.
Oh, Hell, you’re in for it now :P Next you’ll be called some (L) wack-a-doodle bird.
We’ve got some here that would balk at that proposal....no matter that it’s only returning to Constitutional constraints. No matter that the only reason we’re NOT, is the (ILLEGAL) edicts of two presidents.
Course, we were warned ages ago how it would turn out. Still, some are still unwilling to open their eyes and SEE.
USC, estimated costs for 2014-15. Tuition, room and board, books, fees:
$60,700
https://www.cappex.com/colleges/University-of-Southern-California/tuition-and-costs
Student loans are a means to launder money to fund the entrenched left in academia.
If student loans have value, in terms of increasing the value that student can produce for a future employer, then that employer should be willing to underwrite the loan, and provide the student with a contract to repay it from earnings following graduation.
You’re talking step 200...
The following should be the norm for ALL education, K+:
Step 1: Remove taxpayer funding from the equation. It’s illegal and immoral to begin.
Step 2: Remove all tenure. Make all ‘pay as you go’, like any OTHER service.
Step 3: Education will reduce to those degrees that will actually PAY; outside of college.
Step 4: Reduction in govt will allow those that wish to save, to do so; and more would swell the ranks when the opportunity presents.
Step 5: Teachers will be hired based on ability. They can be fired for their inability as well. ‘Mini-schools’ will spring up to cater to the locals.
I’m sure I could keep going, but the basics are there...
Another driver of the student loan bubble - the half of students who go to school but don’t finish a degree, who would have been better off going a vo-tech route but were told you have to go to college, you have to go to college.
Its all government backed these days, but i do not know what % of the outstanding student loan debt came before that
Uh...yeah! What part of “private” does that d-bag Cuban not understand. Imagine if someone from the government told him how much he could borrow from a private bank!
Great point...must be thousands.
I trust that you are going to run for the Director of Education for the US? I’ll vote for you!!!!
Good idea but you've also provided the reason it will never happen.
He is wasting his breath. The Democrats ARE going to propose a student loan forgiveness scheme.
It’s electoral gold. Gonna win the election for them in 2016.
Despite what many may think. A college education isn’t a right. I never took out a loan so I never had to pay anything back. I picked a school I could afford and got a p/t job to help my parents pay for it. Oh, and I didn’t party my way through so I could take the max. hours and graduate in 3 years. Done and done.
Ha! Would never happen. I’m one of those ‘loony’ (L) most around here sneer down their nose upon.
Even if I DID win, I’d put myself out of a job (not a bad ‘winning’ plan, eh?) when they dismantled the whole house-of-cards using my idea(s)
That’s how I paid-off my college loans (five years).
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