Prager U: Student loan forgiveness scam

 

[VIDEO] Inez Stepman from Prager U discusses student loan forgiveness and why it's a scam.

You're going to hear the term cui bono - or to whom it benefits - a lot in this video. Student loans benefits for example the universities because it enables them to hire more administrators or construct more buildings on campus. Student loan forgiveness though perhaps takes a load off of those low earning and impoverished college graduates could actually benefit the wealthy more.

Better yet from the transcript:

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.

Another good one:

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.

Another argument I've heard salaries haven't kept up or even reflect the effort of getting a college degree. And also a lot of jobs in the past didn't require a college degree which just shows how I would dare say in the last 20+ years how there was a strong emphasis by our society on how we must get a college degree.

One reform among three that Stepman notes:

One. Reduce college tuition and availability of student loan funds going forward. We have to break the vicious cycle of ever-increasing tuition and ever-increasing government loans to pay for it.

I would probably add, this video argues against student loan forgiveness, is if you're going to forgive student loans then also reduce the availability of student loan funds. This is one suggestion I would agree with for sure.

If you want to know I wouldn't mind it though I recognize that there might be some issues. The fairness argued here is that student loan forgiveness will be on the backs of people who didn't attend college. Some might argue the financial system will be at risk if we did this.

However, something with this issue needs to change. My stance has always been we need to bring back the value of the college degree and it can't just be another credential we must attain. College can be accessible if the cost of tuition could be reduced. And of course my advice to high school seniors don't go into debt for your degrees, it's not worth it.