American College debt over $1 trillion

I normally pay no attention to Mark Cuban. But this post of his got me thinking.

Remember the housing meltdown? Tough to forget isn’t it. The formula for the housing boom and bust was simple. A lot of easy money being lent to buyers who couldn’t afford the money they were borrowing. …

Can someone please explain to me how what is happening in higher education is any different ?

Its far too easy to borrow money for college
. Did you know that there is more outstanding debt for student loans than there is for Auto Loans or Credit Card loans ? That’s right. The 37mm holders of student loans have more debt than the 175mm or so credit card owners in this country and more than the all of the debt on cars in this country. While the average student loan debt is about 23k. The median is close to $12,500. And growing. Past 1 TRILLION DOLLARS.

We freak out about the Trillions of dollars in debt our country faces. What about the TRILLION DOLLARs plus in debt college kids are facing? …

The Higher Education Industry is very analogous to the Newspaper industry. By the time they realize they need to change their business model it will be too late. Higher Education’s legacy infrastructure, employee costs /structures and debt costs will keep them from being able to re calibrate to a new generation of competitors. …


The Coming Meltdown in College Education & Why The Economy Won’t Get Better Any Time Soon

Controversial. Read the many, many comments on that post.

But I think Cuban’s got a good point. In 10-20yrs Universities will be far different than today. What we are doing now is unsustainable.

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Rick Mc

Career gymnastics coach who loves the outdoors, and the internet.

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