The Student Loan Forgiveness Scam

It’s tough to picture how we might screw up college anymore than we currently have, but we’re about to– if we make sweeping student loan forgiveness a reality. How? To answer this concern, we must start by asking another one: cui bono?

#studentloandebt #studentloans #debt

SUBSCRIBE https://www.prageru.com/join

Take PragerU videos with you everywhere you go. Download our complimentary mobile app!
Download for Apple iOS ➡ https://itunes.apple.com/us/app/prage …
Download for Android ➡ https://play.google.com/store/apps/de …

Script:

It’s hard to envision how we could screw up higher education any more than we currently have, however we’re about to– if we make student loan forgiveness a reality.

There’s a Latin expression that assists explain why. The expression is “cui bono”– who advantages.

In the case of trainee loan forgiveness, it’s primarily the universities and colleges who can charge outrageous tuition largely spent for by trainee loans; second, political leaders who make low-cost guarantees of financial obligation forgiveness to win votes; and third, students from upper middle-class households who would get taxpayers to pay off their trainee financial obligation.

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. Trainee loan forgiveness is a reverse Robin Hood– it takes from the poor and provides to the abundant.

The most obvious argument versus forgiving trainee debt is that no one required any person to borrow cash for college. Before you think I’m going to go all tough love on you, let me say that I have a lot of compassion for young people who have actually dug themselves into the trainee debt hole.

For decades, our society has made the claim that you require a college degree to get ahead in life, and that the wise bet was to get any amount of loans to make sure an intense future.

Uncle Sam– the United States government– stands at the all set with his generous student loan programs. You’re off to college.

Here’s the filthy trick: for every dollar of trainee loan cash the government makes readily available, university tuition goes up by 60 cents!

Universities and colleges do not see college loans as a problem; they see a life of ease.

A lot of college administrators may be cowards ready to cave before every political correctness fad, however they’re not dumb. They can raise tuition essentially at will if the federal government is going to loan you cash to go to college. You can afford it; just obtain more.

And what do the universities do with all that tuition money? Hey, somebody has to pay for all those Diversity, Equity and Inclusion officers?

Cui Bono.

Meanwhile, you stagger out of college with a boat and a degree load of financial obligation to pay off, to get the same task and income that a decade earlier didn’t require a bachelor’s. What terrific way to start your adult life!

If you fit that profile, you’re really most likely to favor trainee loan forgiveness. With a basic stroke of a pen, some or all your financial obligation goes away like it was never ever there.

Cui Bono.

But who’s going to spend for your good fortune? The taxpayers, course.

The most modest financial obligation relief proposition out there now–$ 10,000 per debtor– would cost $300 billion. To clean it all out? $1.8 trillion.

And a lot of those taxpayers will be working class individuals who didn’t go to college– in many cases because they didn’t want to take on all the debt. That’s why in spite of easy student loan gain access to from the government, individuals in the lower and middle classes make up a smaller sized percentage of college students than they did 50 years earlier.

The reality is that loan forgiveness would extremely benefit the already well-off.

It’s forecasted that for every single dollar of financial obligation cancellation that would go to the lower middle class and impoverished trainee loan holders, seven times that would go to the leading 20% of earners– the attorneys, accounting professionals, and doctors who obtained heavily for their degrees.

This group also consists of the people who staff federal government bureaucracies, corporate HR departments, and school administrations– individuals mainly responsible for the woke mini-revolutions upending organization after organization. For this supervisory class, student loan forgiveness would be excellent.

But is it fair?

Cui Bono.

For the full script, see: https://www.prageru.com/video/the-student-loan-forgiveness-scam

source

It’s tough to think of how we might screw up higher education any more than we already have, however we’re about to– if we make sweeping student loan forgiveness a reality. That consists of those who didn’t go to college and a brand-new class of “suckers”– individuals who went to college and paid off their student loans. Trainee loan forgiveness is a reverse Robin Hood– it takes from the bad and offers to the abundant.

Uncle Sam– the United States federal government– stands at the ready with his generous student loan programs. If you fit that profile, you’re extremely likely to prefer student loan forgiveness.