Professor Elam

Monday Oct 13 2014

Mark Cuban, rich guy who naturally thinks he is expert on evrothing, correctly identifies a big Pro blem.

The big problem is the $1+ Tillion Debt. So far so good. This is keeping students hourseoving out of the parents'  house, starting families, etc.

Bt his solution is all wrong. Mark suggests limiting the debt you can assume to $10,000 per year.

I don't think so Mark because

• This does nothing to address the existing problem.
• This does not link accomplishment or course completion to the loan.
• This does not give college administrators much incentive to economize, which is the REAL problem.

The amount of money available for loans should start shrinking year by year. This would put colleges on notice that their product is not ;lsubject to unlimited demand, totally elastic if you will.

And frankly I would limit loans by major. It is ridiculous to let someone in marginal job opportunity majors like fine arts to pile up tens of thousands of dollars. Come to think of it, there should be a ceiling on how much one can boorw by major, the better the chances of getting the job we might lend you a bit more money.

But as long as the govt is in the game, the gaming of the system by colleges will continue.