The Student Loan Forgiveness Scam
It’s hard to imagine how we could screw up higher education any more than we already have, but we’re about to—if we make sweeping student loan forgiveness a reality. How? To answer this question, we must start by asking another one: cui bono?
#studentloandebt #studentloans #debt
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Script:
It’s hard to imagine how we could screw up higher education any more than we already have, but we’re about to—if we make student loan forgiveness a reality.
There’s a Latin phrase that helps explain why. The phrase is “cui bono”—who benefits.
In the case of student loan forgiveness, it’s first and foremost the colleges and universities who can charge outrageous tuition largely paid for by student loans; second, politicians who make cheap promises of debt forgiveness to win votes; and third, students from upper middle-class families who would get taxpayers to pay off their student debt.
Who doesn’t benefit? Everyone else. That includes those who didn’t go to college and a new class of “suckers”—people who went to college and paid off their student loans. Student loan forgiveness is a reverse Robin Hood—it takes from the poor and gives to the rich.
The most obvious argument against forgiving student debt is that no one forced anybody to borrow money for college. Why, then, should others be forced to pay it off? Before you think I’m going to go all tough love on you, let me say that I have a lot of sympathy for young people who have dug themselves into the student debt hole. I am one of them.
For decades, our society has made the claim that you need a college degree to get ahead in life, and that the smart bet was to take out any amount of loans to ensure a bright future.
And if you need help with the tuition? Uncle Sam—the US government—stands at the ready with his generous student loan programs. Fill out a few forms, and presto, there’s a check in your mailbox. You’re off to college.
But here’s the dirty secret: for every dollar of student loan money the government makes available, university tuition goes up by 60 cents!
Colleges and universities don’t see college loans as a problem; they see a gravy train.
Most college administrators may be cowards ready to cave before every politically correct fad, but they’re not dumb. If the government is going to loan you money to go to college, they can raise tuition virtually at will. You can afford it; just borrow more.
And what do the universities do with all that tuition money? Build more buildings. Hire more administrators. Hey, somebody has to pay for all those Diversity, Equity and Inclusion officers, right?
Cui Bono.
Meanwhile, you stagger out of college with a degree and a boat load of debt to pay off, to get the same job and salary that a decade ago didn’t require a bachelor’s. What great way to start your adult life!
If you fit that profile, you’re very likely to favor student loan forgiveness. Who can blame you? With a simple stroke of a pen, some or all your debt goes away like it was never there. And, the least you can do, in return, is vote for the politicians who made it possible. At least that’s how the politicians see it.
Cui Bono.
But who’s going to pay for your good fortune? The taxpayers, course.
The most modest debt relief proposal out there now—$10,000 per borrower—would cost $300 billion. To wipe it all out? $1.8 trillion.
And a lot of those taxpayers will be working class people who didn’t go to college—in many cases because they didn’t want to take on all the debt. That’s why despite easy student loan access from the government, people in the lower and middle classes make up a smaller percentage of college students than they did 50 years ago.
The reality is that loan forgiveness would overwhelmingly benefit the already well-off.
It’s projected that for every dollar of debt cancellation that would go to the lower middle class and impoverished student loan holders, seven times that would go to the top 20% of earners—the lawyers, accountants, and doctors who borrowed heavily for their degrees.
This group also includes the people who staff government bureaucracies, corporate HR departments, and school administrations—the people chiefly responsible for the woke mini-revolutions upending institution after institution. For this managerial class, student loan forgiveness would be great.
But is it fair?
Cui Bono.
For the full script, visit: https://www.prageru.com/video/the-student-loan-forgiveness-scam
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Student loan forgiveness would grow the economy,
1. Most people who have more then a high school degree makes more then those only with a high school degree.
2. Forgiving student loan debt would allow for those people to spend more money increasing the profits of small businesses and expanding the gdp.
3. It would not be paid for by everyone else as like i said people with more then a high school degree makes significantly more then those with 1, this means more income, property, sales and excise tax revenue or they could make a business allowing for corporate tax revenue and expanding the gdp.
And to prevent this from happening again, make every university or college a non profit, make all colleges and universities free at the point of service and turn all colleges and universities into worker coops to cut down on unneeded administration.
As with so many things, government is the problem, laissez-faire is the solution.
Its only okay to give my money to Margery Taylor Green ($217,393) for her construction business in PPP loans forgiven because shes a millionaire. But def not my student loans. Cui Bono.
"it takes from the poor, and gives to the rich"
Ah yes, the rich elite, also known as college grads buried in debt, that makes sense.
Student loan forgiveness isnt a scam its simple train of thought really the government pays of the school loan for you in the same way in canada pays for my health care the government already funds the schools anyways and in no way the creditors are hurting because the government is paying them and the tax payer you is paying for that same as in canada the reason we can get free heathcare is because of our tax dollars
I personally would be more inclined to support debt relief if we were really going to address the REAL problem. We have people going to college who shouldn't be going. When only 60% of students graduate, and of graduates, only 1/3 of those actually take a job relevant to their field of study, that translates into less than 20 out of 100 students that actually accomplishes the primary objective of a college education. Taking a job in a field of study one received a degree in. Thats an over 80% failure rate. Compound that with nearly 35-40% of incoming freshman at public colleges and universities, do not have the requisite reading, writing, and mathematic aptitudes to perform college level coursework. They have to take remedial classes to allow them to be at "entry level". College was a place for the "exceptional" academically, and we should start remembering that.
Another problem stems from universities needing to create degree programs to keep students attending classes, and borrowing money. Programs that are often not relevant to todays employers and certainly not at a pay grade to adequately repay a student loan. I have often joked that a communications degree was invented by academic advisors as a way for students who were flunking out of their original degree program to remain in school, and not have to explain to their parents why they were going to flunk out.
Finally, universities should tie their tuition to the salaries of a chosen career field. A social worker, for example, who needs a masters degree for their position, may borrow say, $90,000 for that degree, yet only make a top end salary of $47,000. There is no way that person will be able to pay off that loan, and prepare for purchasing a home, retirement savings, or other types of things you should be striving for. If adjusting tuition wont work, then limit the programs to only full scholarship. Think like the military academies, there are no walk-on's, you get a full ride, or you don't go. No borrowing for this program.
Do these poor kids think they can get trillions interest free like the big banks in 2009-11. Or, like the business owners during the pandemic who defrauded the government for $200 billion and were forgiven? Or like the billionaire SV Bank depositors who were fully reimbursed within days of the collapse?
No! Those kinds of sweetheart deals require lots of kickbacks!
There weren't even any news stories asking about how people react! Way to go FREE PRESS!!!
Dont cancel student loans.
Cap the interest rates.
Yet you received 700,000 in PPP loann forgiveness?
The problem is profit based education. Plain and simple.
It would help all pursuing an undergraduate reduce the time to 3 years to complete. The extra 24+ semester hours of classes outside of the degree are distractions and delay pursuing a career.
It’s theft. If any institution lends money, they have a reasonable expectation to recover the balance plus interest. Otherwise, there is NO incentive to lend in the first place especially high risk loans like these.
the school doesnt care who they give a degree to because they get paid no matter what. they just want togive as many out as they can.
Did prater u take free ppp loans? How much did you guys get and how much did you guys pay back? Also have you ever heard of fractional reserve banking? I’m sure you guys know some Jews making up currency
In 2020, PragerU received $704,057 in COVID-19 relief loans from the Paycheck Protection Program; this debt was later forgiven in full.
These are the same people who ask for more foreign aid for israel? Wheres the cui bono for that?
What about all of the money that we’ve sent to Ukraine?
Scam?! Lmao you mean the scam of student loans in the first place
The waaaaa I want free stuff crowd got played again. Wow what a coincidence it comes out after the election that's unconstitutional for the President to do this. We on the right were saying that all along. You got played for votes. Dictator Biden needs to play by the rules.
Travel, dining out and new tech': 73% of student loan borrowers plan to spend their debt forgiveness on non-essential items. Source: MoneyWise November 2022
Students should file a class action lawsuit.
it's greatful having a percient guidance like Ms Becky Anderson, Focusing on her investments concerning coin trading is the greatest decisions I have taken in my life
This is same we health providers
so called Obama care…it’s never work for Americans!! Need reform medical cost first which President Trump tried once.
Lower College Tuition?! Ok, Bernie.
Well first of loan forgiveness in a historical sense is taking the contract and ripping it up. If the loan forgiveness was structured that way then the only people that would be screwed over would be the people that purposely set this situation in motion. The fact that we live in a society where people find the more realistic option would be to force the scammed section of the population to continue to give scam artists money. Along with the fact of leaving those people still in office. People who have proved time and time again that only wish to inflict pain upon the public. Is rather disheartening.
It used to be those kind of people would face the consequences of their actions. But today the only consequence they get is reward.
I DIDN'T CO-SIGN FOR ANYONE'S STUDENT LOANS!! TRADE SCHOOLS IS WHERE IT'S AT. A PLUMBER OR ELECTRICIAN MAKES MORE MONEY THAN SOME OF THOSE FOUR YEAR DEGREES DO. RED WAVE TSUNAMI COMING IN NOVEMBER MIDTERMS AND THEN ONTO PRESIDENT TRUMP IN 2024. GOD BLESS AMERICA!! 🇺🇸✌️👍🏻
People who spend most of their time trying to get out of paying their fair share of taxes:
"Noo, that's not faiiiir"
When the Soviets took power all loans from the Russian Empire were considered illegitimate and they did not continue payments. This should happen with student loans. Just denounce them as illegal and move on!
you all do realize that student loans also went to community colleges, trade schools and even certificate programs
Why not just stop funding schools altogether? Why not just force congress to fix this through refusing too pay school taxes?
How are you?
– cui bono
What's you're name?
– cui bono
Are you OK?
– cui bono.
People need to understand one thing: THE GOVERNMENT DOES NOT HAVE THE AUTHORITY TO FORGIVE STUDENT LOANS! The Fed is DEAD! There is nobody left to regulate the payback of these loans and THAT IS WHY they are going away! Because the fed is bankrupt and doesn’t have the means to enforce the payback! BIDEN is trying to take credit for this- his playbook is blame the other guy for his actions and take credit for others efforts. He is a coward and a fool and always has been! WAKE UP PEOPLE! We are running out of time here! America is falling apart!
It’s trying to buy votes!!
I agree with about 98% of this video, but can't quite understand why we conservatives keep exaggerating about the rich benefiting versus middle class. When did 125,000 a year become rich doctors and lawyers? And while some of these doctors and lawyers would love to see 5 or 10% of their student loans go away, it's not like you're making the rich richer.
Thank you
First off, there should be ABSOLUTELY NO interest on student loans! The U.S. Government should not be in it to make money off loans from students. Their ROI will be from these people's taxes because they are, in theory, making more money from better-paying jobs.
Secondly, colleges and universities should be held accountable for OUTRAGEOUSLY high tuition!!! When soo many universities are spending 100s of millions of dollars on their sports programs and paying their coaches and sports directors 10s of millions of dollars a year for a WORTHLESS job on the backs of student's pathetically expensive tuition then there is a REAL problem!!!
It is time for these greedy parasites to be held accountable for the problems they have created. There is NO reason for tuition to be so high. The only reason to go to college is to become a Lawyer, Doctor, Engineer, or some type of job that actually requires REAL intelligence!!!!!!!
biggest scam is paying medicaid, welfare and unemployment FOREVER. everyone can say you signed for it you pay it, same can be said for kids, and all the bills that are used with said free money handed out by the billions every year, but not a peep about that
Instead of helping fellow Americans, we need to give Israel over 4 Billion of US taxpayer money each year. That would pay off tuition for every college student in the US.
Discover card has a commercial. They say it's simple. You shouldn't have to pay what someone else bought on your account.
Why can't the same students/alumni that use that same card on a daily basis agree to that simple concept?
They're extremely selfish and very short-sighted.
Tried college. Hated it. Joined military, learned networking and communications, got out and landed a city job that pays 6 figures. College is NOT for everyone.
Dear Christians, our entire religion is centered on the idea of a forgiven debt. If you oppose student loan cancellation, you’re just a bad person and you’ve turned your back on what it means to be Christian. It’s so sickening to see Christians act this way in response to the government helping students.
You're making sense guys, but common sense ain't taught…nor encouraged or rewarded