Michael Burry is predicting “terrible consequences” if student loans are forgiven. 

As the Supreme Court considers arguments on President Joe Biden’s plan for debt forgiveness, Burry tweeted that the problem is built “on a foundation of terrible major choices.” He said a bailout would compound the problem and lead to tuition hikes.

Let’s not forget that the student debt problem is built on a foundation of terrible major choices.

Bailing generations out of those bad choices will mean more bad choices, tuition hikes, and terrible consequences for America.
—Cassandra B.C. (@michaeljburry) March 1, 2023

Burry, 51, was made famous for betting against the housing market before the 2008 crash. Lately, he has taken to making bold predictions on social media, usually about the stock market or economy. Most recently, the founder of Scion Asset Management, who was featured in Michael Lewis’s Big Short, said that the U.S. is in a recession and advised traders to sell ahead of last month’s Federal Reserve meeting. He did not respond to a request for comment. 

The Supreme Court is currently deliberating on Biden’s plan to forgive up to $20,000 in student loans per borrower, with an income cap of $125,000 for individuals and $250,000 for households. In hearings Tuesday, the court’s conservative majority cast doubt on the plan, suggesting that it was an overstep of presidential power. 

Burry said he has personal experience with student loans. He attended UCLA, before going to Vanderbilt University for his medical degree. He began his residency at Stanford University, but then dropped out to focus on investing, leaving with “well into six figures of educational debt.” 

When I left residency at Stanford to gamble my future on what was to become, I had well into six figures of educational debt. I was damned sure I was going to pay it off.
—Cassandra B.C. (@michaeljburry) March 1, 2023

Rising tuition rates in recent decades have contributed to increased student debt levels. In 1970, the average student debt at the time of graduation was just $1,070. That figure rose to $31,100 in 2021, an increase of more than 2,800%.

This article was provided by Bloomberg News.