Start saving for college early
The Silent Thief
One of the new major crises that we are facing is student loan debt.
As middle class Americans we are graduating from college with more debt than ever due to the rising costs of getting a good education. Billionaire Mark Cuban thinks that colleges will eventually go out of business due to the constant rising cost of education. In a recent clip Cuban did for Inc.com he talked about the student loan bubble.
“Cuban:
“It’s inevitable at some point there will be a cap on student loan guarantees. 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.”
Read more: http://www.businessinsider.com/mark-cuban-student-loan-bubble-2014-6#ixzz3e2mTO4Ts
Cuban has a good point. Many of us are still paying for student loans way after we have graduated and joined the work force. The ugly truth is that for most hard working Americans is that they will not outlive their student loans.
“Cuban also talks about the impact student loan debt is having on the economy, saying that people burdened with student loans can’t afford to spend money on anything other than the bare necessities.
There are a number of problems with the increasing cost of college both for the colleges themselves and the broader economy.
Cuban’s specific call for a cap on student loan guarantees, and a subsequent collapse in tuition prices, portends an ugly future for colleges in the U.S.
With such a major rising economic crisis it is important that families start saving for college early in order to avoid the pitfalls of student loan debt crisis on the next generation.
And it is so simple and easy to do with the right Financial Coach.
See you next week!
