Instead of taxes, jobs or government spending billionaire investor Mark Cuban said tackling the $1 trillion student debt crisis would be most effective in saving the U.S. economy.
The burden of loans is curtailing college graduates’ purchasing power that could stimulate the economy, Cuban said at Inc.’s GrowCo conference.
“That’s the same money that, when you graduated, you used to move out of the house or you went out and spent money that improved the economy and helped companies grow,” he said.
The best way to fix the student loan bubble is to limit the allotted amount of loans each student is allowed to receive each year to no more than $10,000, Cuban said.
Rising tuition costs don’t help the economy as much as increasing students’ purchasing power—a college may just use the extra cash to “build a better fitness center at your school.”
Watch Mark Cuban discuss his solution on Inc.