It is “inevitable” that the student loan bubble is going to burst sometime in the future, resulting in a “repeat of what we saw in the housing market,” according to billionaire Mark Cuban.
The Dallas Mavericks owner issued the dire warning in a recent interview with Inc. Magazine — and it took him less than 90 seconds to make his case.
“It’s inevitable at some point there will be a cap on student loan guarantees,” he said. “And when that happens you’re going to see a repeat of what we saw in the housing market. When easy credit for buying or flipping a house disappeared we saw a collapse in the price housing, and we’re going to see that same collapse in the price of student tuition, and that’s going to lead to colleges going out of business.”
Watch the relevant portion of the interview here:
(H/T: Fox Nation)