Mark Cuban lends support to forgiveness of $10,000 in student loan debt
Mark Cuban – the billionaire entrepreneur, popular TV personality and owner of the National Basketball Association’s Dallas Mavericks – has come out in favor of forgiving $10,000 in student loan debt per borrower.
“We don’t want this to be a permanent problem. It needs to be fixed,” he said in an email to Insider earlier this week.
“As far as how much is to be forgiven, I’m good with the [President Joe] Biden proposal,” he continued.
For years, Cuba has been a strong supporter of eliminating student loan debt. In 2014, according to CNBC, he claimed the country’s rapidly rising student loan debt was hurting the US economy by crippling the purchasing power of recent college graduates.
“It’s the same money that when you graduated, you left home or you went out and spent money that improved the economy and helped businesses grow,” said Cuban, whose Mavericks are currently fighting the Golden State Warriors out west. conference finals, said at the time.
He also expressed concern that colleges and universities charge “ridiculous tuition”. Per Insider, Cuban said in 2015 that canceling student debt was “the worst thing you can do,” adding that “all it does is bail out universities.”
Earlier this week, Senate Majority Leader Chuck Schumer (D-NY), Sen. Elizabeth Warren (D-MA) and Sen. Raphael Warnock (D-GA) pressed President Joe Biden during a meeting at the White House to quickly sign the student loan debt forgiveness, according to Bloomberg.
The three senators led efforts to write off $50,000 in student loan debt per borrower. Biden, however, has indicated that he is unlikely to exceed $10,000 per borrower and that people earning more than $125,000 a year may not be eligible.
“I want to see the maximum amount of debt relief possible,” Warren told reporters. “Fifty thousand dollars would bring immediate relief to tens of millions of families.”
The Biden administration announced last month that it would make a decision on canceling student loans before the final freeze on student debt payments expires on Aug. 31.
In response, Sen. Mitt Romney (R-UT) and several of his Republican colleagues have introduced a bill called the Student Loan Accountability Act, which would ban the Biden administration from largely canceling student loan debt.
“It makes no sense for the Biden administration to write off nearly $2 trillion in student loan debt,” Romney noted in a statement.
This decision would not only be unfair to those who have already paid off their loans or decided to follow alternative education paths, but it would be extremely inflationary in an era of already historic inflation,” he added.
Ben Bernanke, former Federal Reserve Chairman, also spoke out against Biden’s apparent desire to write off student loan debt.
“It would be very unfair to eliminate,” said Bernanke, who served at the Fed from 2006 to 2014. New York Times. “A lot of people who have significant student debt are professionals who are going to go on and make a lot of money in their lifetime. So why would we favor them over someone who didn’t go to college, for example? »
Ethen Kim Lieser is a Washington State-based finance and technology editor who has held positions at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow him or contact him on LinkedIn.