““We don’t want this to be a perennial problem. It has to be fixed. As for how much to forgive, I’m fine with Biden’s proposal.”
It was billionaire businessman Mark Cuban who gave his thoughts on the problem of student loans and US debt in an interview with Insider on Wednesday. Cuban says he supports President Joe Biden’s proposal to forgive up to $ 10,000 in student loans per borrower.
Cuban’s comments contrast sharply with his previous views on the student debt crisis. In the past, Cuban said forgiveness of student loans could boost the economy, but explained that the problem should be addressed by addressing the “ridiculous tuition fees” of colleges and universities.
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“Forgiving debt is the worst thing you can do,” Cuban said in 2015. “Because all it does is bail out universities.”
Cuban still argues that forgiveness is a temporary solution, and the U.S. needs to find a way to get tuition to manageable levels.
He also added an idea to TWTR Twitter,
to create a single four-year university without enrollment in each designated market area, which Cuban said would force high-cost universities to reduce their total cost of attendance.
In 2014, Cuban said the student debt crisis is taking money out of the economy because those who are hampered by large loans, especially younger borrowers, are making loan payments instead of using that money in other places.
“This is the same money that when you graduated, you used to leave home or go out and spend money that improved the economy and helped grow businesses,” Cuban said at the time.
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In 2020, Biden campaigned on the idea of forgiving $ 10,000 per borrower, but has not taken any action on the issue since taking office.
Cuban’s comments come when Biden said on April 28 that he would release details of a plan that would address student loan problems in the U.S. “in the next two weeks.” No announcement has been made yet, but Biden has stated that he is seeking to forgive less than $ 50,000 in debt per borrower.
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Federal student loan payments have been stalled since former President Donald Trump made the initial freeze in March 2020, in the early days of the pandemic; then the Trump administration extended it twice and twice more under the Biden White House.
The student loan default is affecting more than 43 million Americans, according to the latest data from the Department of Education.