May 16, 2012

Student Loans for University Education Crisis, Mark Cuban

Mark Cuban on the student loans for university education crisis.
Student loans stand at greater than $1 Trillion. 
The point of the numbers is that getting a student loan is easy. Too easy.

You know who knows that the money is easy better than anyone ? The schools that are taking that student loan money in tuition. Which is exactly why they have no problems raising costs for tuition each and every year.

At some point potential students will realize that they can’t flip their student loans for a job in 4 years. In fact they will realize that college may be the option for fun and entertainment, but not for education. Prices for traditional higher education will skyrocket so high over the next several years that potential students will start to make their way to non accredited institutions.

You would think traditional university educators would take notice. Beyond allowing some of their classes to be offered online, they haven’t. They won’t. Its the ultimate Innovators Dilemma. They don’t believe they should change and they won’t. Until its too late. Just as CEOs push for that one more penny per share in EPS, University Presidents care about nothing but getting their endowments and revenues up. If it means saddling an entire generation with obscene amounts of school debt, they could care less. This is how they get their long term contracts and raises.

that you go to college to learn how to learn. However, if that goal is subverted because traditional universities, public and private, charge so much to make that happen, I believe that system will collapse and there will be better alternatives created.

The $1 Trillion of student loans is a big problem. It won’t get solved by making education even more expensive.

The online alternatives to traditional university education are coming and coming on strong. The alternatives bring free or close to free high-quality education that is available to all – not just to the few students that are on campus. For an example, check Udacity.

Tags: student debt crisis, student loan crisis, mark cuban student loans, mark cuban student debt, online alternative for university education, is student loan worth it, university loan crisis