Low cost online education to fill growing need
Billionaire business magnate Mark Cuban is warning that higher education is on a course to melt down, just as the housing market did in 2008. The similarities between the housing bust and the coming higher education bust are eerie, Cuban states.
For instance, the housing bust occurred because lots of cheap money was loaned to buyers who really couldn’t afford what they were borrowing, Cuban notes. These borrowers were dependent on the price of the house increasing so that they could flip the house or refi and make a profit. As long as the home prices kept going up, everything was fine. Then, the easy borrowing stopped. This meant that these people could not sell their homes and could not refi. Prices dropped and then the crash came.
Cuban says that we are seeing the exact same situation in higher education. Too many kids can borrow too much money too easily. The fact is that the 37 million young adults with student loans have more debt than 175 million holders of credit cards. Overall, these young people hold a staggering trillion dollars of college loan debt.
Colleges encourage this cycle because they get lots of free money from the government, who is loaning too much money to students. The feds are not asking enough questions about which college programs it’s being used for.
Cuban thinks the big problem is coming because these students are going to find in this bad economy, that they can’t find a job that comfortably pays their student loan off. They may have trouble finding a job at all, or the job they find does not pay enough to service the debt and allow them to live comfortably.
Students will stop being so willing to go into $75,000 in debt for a degree that gets them a $10 an hour job. What will happen then, Cuban believes, is a boom in lower cost, online education. This is already happening, as more online tech programs are showing up on the Internet that are either free or very low in price.
These online education websites provide essential training at a low price. They simply provide students with the skills to make them employable. Cuban believes that many traditional on campus education universities will either have to drop their prices, or will eventually go out of business. This will open up low cost, online education to the masses, and will lead to a revolution in education, the billionaire believes.
Some of the most interesting, and free, online education resources being offered by some colleges include the following: