by Mark Cuban, Seeking Alpha
Just as CEOs push for that one more penny per share in EPS, University Presidents care about nothing but getting their endowments and revenues up. If it means saddling an entire generation with obscene amounts of school debt, they could care less. This is how they get their long term contracts and raises. It’s just a matter of time until we see the same meltdown in traditional college education. Like the real estate industry, prices will rise until the market revolts. Then it will be too late. Students will stop taking out the loans traditional Universities expect them to. And when they do, tuition will come down. When prices come down, Universities will have to cut costs beyond what they are able to. They will have so many legacy costs– from tenured professors to construction projects to research– they will be saddled with legacy costs and debt in much the same way the newspaper industry was. This will all lead to a de-levering and a de-stabilization of the University system as we know it.
http://seekingalpha.com/article/585841-the-coming-meltdown-in-college-education
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