More on Mark Cuban’s student loan idea
bronze-by-gold said: Brilliant? In what universe? Student loans are often used to cover living expenses while in school, and using poorly paid TAs to reduce the cost of education is exploitative.
» SFB says: The argument Cuban is making is one of efficiency. I think the idea that he’s getting at is that the price of college has gotten more expensive because student loans are easy to get. It artificially raises prices for such things like living expenses, forcing the need for more expensive loans. By limiting their spiraling cost, it forces the market value of an education down. Obviously, there is more that goes into it than that, but when schools don’t become so reliant on money that no longer exists, artificially-inflated products — say, $200 textbooks for subjects thousands of students take — will become less justifiable. Would it be perfect? No. But it’s an interesting idea that could easily be built upon. (Also worth reading is this argument against Cuban’s idea, which makes a valid argument that he’s not taking every element into account.) — Ernie @ SFB