May 26, 2026
Mark Cuban has never been shy about telling people what he thinks — and when it comes to student debt, his view is blunt.
In a recent Impaulsive podcast episode, the billionaire investor and former Shark Tank star called taking out loans to pay for school “the dumbest thing you can do,” and laid out a two-step alternative he says makes far more financial sense. And while Cuban was speaking to a U.S. audience, his advice is equally applicable to Canadians.
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His strategy: Start at a college, then transfer.
“Go to community college. Accounting class is accounting class, whether it’s at a community college or at Harvard,” Cuban said. “Psychology is psychology for the most part ... So get those first couple years of your introductory classes (and) transfer where you can afford to go.”
The case against student loans in Canada
Cuban’s argument is difficult to dispute — and it holds up north of the border.
The average university undergraduate tuition in the country was approximately $7,360 a year in 2024–25, according to Statista. At private universities — such as Quest University in B.C. — annual tuition can exceed $30,000. By contrast, tuition for college programs, including CÉGEP in Québec, typically runs between $2,400 and $3,600 a year.
Cuban’s strategy means completing foundational first- and second-year coursework at a college before transferring to a university degree program, which could save a Canadian student tens of thousands of dollars before a single loan is required.
The urgency of Cuban’s warning is backed by Canadian data, too.
The average federal student loan balance at graduation under the Canada Student Loans Program (CSLP) is approximately $15,091. In 2022, Maclean’s magazine reported the total student debt at graduation hovers between approximately $26,000 and $28,000 for a bachelor’s degree.
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And like the U.S., Canadian student loan debt isn’t easy to walk away from.
Under Section 178(1)(g) of the Bankruptcy and Insolvency Act (BIA), government-issued student loan debt can’t be discharged in bankruptcy if the borrower has been a student within the past seven years. Discharge is possible after seven years — but the window can be shortened to five years in cases of demonstrated “undue hardship,” if a court agrees. Cuban specifically called out bankruptcy protection as a key reason post-secondary costs have spiralled.
“If everybody could borrow any amount of money and you couldn’t even declare bankruptcy to get rid of it, college prices went up,” he said.
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The shifting landscape of post-secondary education
Cuban also flagged a trend in higher education that the data backs: Institutions are closing.
“You’re starting to see a couple colleges close to bankruptcy. I think you’re going to see more,” he said.
Canada isn’t immune. According to the Government of Canada, the number of degree-granting post-secondary institutions has remained broadly stable at approximately 280 public institutions, but smaller private career colleges have faced significant closures and regulatory pressure. Also, the Ontario Private Career Colleges Act has seen several programs wind down in recent years, leaving students scrambling for refunds or alternate placements.
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The risk of choosing an institution primarily based on prestige — and taking on debt to attend — grows when that institution’s long-term viability is unclear.
A cost difference not worth the debt
Cuban’s broader argument is that the academic content at affordable institutions is largely similar at the elite alternatives — particularly for foundational coursework — and that the cost difference between the most expensive school and a solid public college simply isn’t worth the debt for most students.
“The delta between the most basic four-year school and the best public universities is really small,” he said.
What he valued most from his own time at Indiana University was “learning how to learn.” Cuban argued that skill translates far beyond the classroom and can be acquired without a five-figure price tag.
Read more: Here are the 3 net worth milestones that change everything for Canadians (and what they say about you)
Cuban’s formula — and what the data says
If you or someone you know is weighing post-secondary options, the first question should be: Which school can you actually afford to finish?
To compare the two countries: U.S. Federal Reserve data found that among borrowers who carried student loan debt, only 44% said the financial benefits of their education exceeded the costs, compared to 68% among those who graduated debt-free. And in Canada, the Canadian Centre for Policy Alternatives (CCPA) documents a similar pattern — graduates carrying heavier debt loads and households with student debt face greater financial challenges.
Cuban’s formula — start cheap, transfer smart, avoid the debt trap — may not be glamorous, but the numbers suggest it’s more advantageous than the alternative.
What Canadians can do
Cuban’s two-step strategy translates directly to students seeking higher education in Canada. Here are concrete steps that can help reduce student debt and ensure a more stress-free transition into a professional life:
- Explore college-to-university transfer pathways. Most provinces have formal articulation agreements that allow students who complete a two-year college diploma or certificate to receive credit toward a university degree. The Ontario Council on Articulation and Transfer (ONCAT), the BC Transfer Guide and the Alberta Council on Admissions and Transfer are government-supported tools designed exactly for this purpose.
- Apply for Canada Student Grants first. Before taking out any loan, apply for Canada Student Grants through the Canada Student Financial Assistance Program (CSFAP). Full-time students from low- and middle-income families can receive up to $4,200 a year in non-repayable grant funding.
- Use a Registered Education Savings Plan (RESP) if planning ahead. If you have children, contributing to an RESP allows your savings to grow tax-sheltered. The government’s Canada Education Savings Grant (CESG) adds 20% on the first $2,500 contributed a year — that’s up to $500 in free money annually, to a lifetime maximum of $7,200 for each child.
- Know the seven-year bankruptcy rule. If you graduate with student debt and find yourself in serious financial difficulty, the Bankruptcy and Insolvency Act allows student loan debt to be discharged seven years after you cease to be a student. This isn’t a strategy to plan around — but it’s a legal protection to know about.
- Choose your institution based on outcomes, not prestige. Research post-graduation employment rates and median earnings by program and institution using Statistics Canada’s Education and Labour Market Longitudinal Platform (ELMLP). Some college programs outperform university degrees in employment rate and income in the first five years after graduation.
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With a writing and editing career spanning over 15 years, Emma creates and refines content across a broad spectrum of industries, including personal finance, lifestyle, travel, health & wellness, real estate, beauty & fitness and B2B/SaaS/tech.
