All Financial Wisdom

Is this the beginning of the College Implosion?

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After news of Sweet Briar College abruptly closing its doors and the news about President Obama's Student Loans reform plan called a Student's Bill of Rights, Mark Cuban thinks he knows what to do.  Mark Cuban notes that "this is just the beginning of the college implosion."

Cuban suggests that Congress needs to cap the amount students can take from private lenders.  This way, colleges will not be able to increase tuition to much further, without seeing a drop in attendance.  They would have to increase financial aid or lower tuition.

Cuban is highly against forgiving all student debt.  He thinks this sends the wrong message, and ultimately solve the problem.

President Obama's plan includes a hotline for student loan complaints.  "Obama has also proposed more sweeping measures, like making the first two years of community college free for students that maintain a certain grade point average. He also raised the maximum Pell Grant award by nearly $1,000 to $5,730 a year and created a new tax credit to help families pay for college. [CNN MONEY]"

It would be financial wise to understand the terms of the loans that you are partaking in.  I would suggest take college seriously and try to get the most education out of it.  It is a big investment for your future.

References:

http://www.businessinsider.com/mark-cuban-heres-how-to-fix-the-student-debt-crisis-2015-3

http://www.businessinsider.com/mark-cuban-forgiving-student-debt-is-the-worst-thing-we-could-do-2015-3

http://money.cnn.com/2015/03/10/pf/college/obama-student-debt/index.html

1 Comment

  1. MarkD

    July 21, 2015 at 8:26 pm

    What Mr Cuban is essentially saying is that student loans are too easy to get. I agree. If they were harder to get students might spend them more wisely. https://www.yourmoneypage.com/education/studentloan.php

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