Mark Cuban backs $10,000 student loan forgiveness: ‘It needs to be fixed’

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“We don’t want this to be a long-lasting problem. It needs to be corrected. As for the amount to forgive, I agree with Biden’s proposal. ‘

It was billionaire entrepreneur Mark Cuban who offered his thoughts on the student debt problem in the United States in a Wednesday interview with Insider. Cuban says he supports the proposal backed by President Joe Biden that would forgive up to $10,000 in student loans per borrower.

Cuban’s comments represent a stark contrast to his earlier views on the student debt crisis. In the past, Cuban has said canceling student loans could boost the economy, but said the problem should be solved by tackling “ridiculous tuition” at colleges and universities.

To see: College enrollment is down. Here’s how it could impact the economy

“To forgive the debt is the worst thing you can do,” Cuban said in 2015. “Because it just bails out universities. »

Cuba still maintains that the pardon is a temporary solution and that the United States must find a way to bring tuition fees down to manageable levels.

He also added an idea on Twitter TWTR,
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to create a single tuition-free four-year college in each designated market area, which Cuba says 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 embarrassed by large loans, especially young borrowers, are repaying their loans instead of using that money elsewhere. .

“It’s the same money that when you graduated you used to leave the house or you went out and spent money that improved the economy and helped businesses grow,” he said. said Cuban at the time.

See also: Is a graduate degree worth it? Fewer employers require them; here are the pros and cons.

In 2020, Biden campaigned on the idea of ​​a $10,000 rebate per borrower, but he has taken no action on the matter since taking office.

Cuba’s comments come as Biden said on April 28 that he would release details of a plan that would resolve student loan issues in the United States “within the next two weeks.” No announcement has yet been made, but Biden has said he is looking to forgive less than $50,000 of debt per borrower.

See Also: Mark Cuban Says “Crypto Is Going Through The Internet’s Lull”

Federal student loan payments have been suspended since former President Donald Trump made the initial freeze in March 2020, at the start of the pandemic – it was later extended twice by the Trump administration and twice again under the Biden White House.

The student loan payment pause affects more than 43 million Americans, according to the latest data from the Department of Education.

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