'It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to the own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.' -Adam Smith, The Wealth of Nations

Student Loans Should Be Forgiven

by Ethan Glover, Sat, Sep 16, 2017 - (Edited) Sat, Nov 18, 2017

You'll find four sections in this article. One, 'The Stats,' containing the statistics on student loans and why they're a problem. Two, 'The Blame,' where universities and states place the blame for the problem and how they're trying to "help." Three, 'The Scam,' how and why Universities are a scam. And four, 'The Reason,' why student loan debt should be forgiven.

The Stats

In 2012, 71% of students graduated with outstanding student loans. On average, the owed $29,400. A 25% increase from the 2008 average. (Ticas) A 2013 survey of 61,762 people showed that it takes an average of 21.1 years to pay off those loans. (OWI) In 2016, outstanding student loan debt exceeded $1.3 trillion across 44 million borrowers with an average of $37,172.

The Banckruptcy Abuse Prevention and Consumer Protection Act prevents student loan borrowers from filing for bankruptcy. The only relief available to borrowers is via default. Defaulting on a student loan means the taxpayer picks up the tab. For the borrower, one of four things happen. The IRS takes their tax refund. The government garnishes their paycheck by up to 15%. The government takes benefits such as Social Security retirement and disability up to 15%. Or the government sues them to collect.

In 2013, the United States spent $27,900 per full time student, 89% higher than the global average. (According to the Organization for Economic Cooperation and Development.) The US has an average graduation rate of 44.3% for men and 64.6% for women. Placing only 3% and 8% above global averages despite such higher spending.

Tuition costs have risen 476.2% in 30 years. More than two times the inflation rate of 222% in that same period.

The Blame

LSU blames the rising costs on a lack of state funding. Because the state gives them less of the taxpayers' money, they must charge the students more. This doesn't take into account the total rise in tuition costs and only passes the buck.

The Tennessee Promise program offers all students in state 2-years of "free" college." Paid by the taxpayer of course. It asks nothing of the students in return except for 8 hours of community service. An estimated value of less than $200. Again, this does not address rising costs and decreasing quality.

The Scam

Colleges go through a lot to sell kids on a dream. To attract students, they have to sell students on the idea of them working their dream job for large amounts of wealth. They find ways to give high numbers for job placement after graduation. Even if they have to define "job placement" as working at a fast food chain.

High Point University has spent $2 billion on things like playing classical music across campus, seven pools, jacuzzis, beach volleyball, concierge service, valet parking, an arcade (free), a cinema (free first-run movies and snacks), a sports bar, an ice cream truck, a steakhouse, free massages, and a first-class airplane lounge. Their graduation rate? 62.5%. The average salary for graduates 10 years after attending, $37,100. (College Scorecard)

Jason Jenson, a former Globe University Admission Officer admits to exaggerating the benefits of the education provided. "My goal was to find the prospective students' pain. So if you were a single mother with two or three kids at home, 'Are you making enough money to provide for your family? Furthering your education. Doesn't that sound like a great option for you?'" He did this with full knowledge that students, don't have a better chance at success after graduation than someone with a high school diploma.

The Reason

Universities lie about success rates and rack up debts for students that cripple them for the rest of their lives. When I brought this up to libertarians, I got the typical answers off the index card of allowable opinion. 'It's your fault you didn't pick a good major.' 'The debts are private contracts, there's nothing wrong with that.' 'ur a commie'

The University system is a self-serving scam brought to you by the lender, the United States government. They monopolize education through the DoE and control accreditation. They sell the idea that everyone should get a secondary education. They hand out the loans to charge students for the rest of their lives. If not, they just fund the schools through the taxpayers' dollar.

Universities are "too big to fail" and despite dismal numbers, the government forces the public to keep them afloat. Libertarians somehow think it's OK to allow big banks to fail on the issue of the 2008 crash, but are not OK with allowing Universities to fail.

In 2008, banks gave out huge loans that people couldn't pay back. The government bailed them out. Today, millions default on student loans and the government bails them out.

It is the loan program driving up costs to begin with but libertarians want to continue that. They want to continue government bailouts for those bad loans. Maybe they haven't thought this through.

Most student debt should be forgiven. The cost shouldn't go back to the government to cover, but the universities themselves. Let $1.3 trillion dollars of debt that will never get paid back crash the corrupt system. Allow the scam to fall so that something real can emerge from the ashes.

What do you think? Why am I wrong? Why am I right? Tell me in the comments below.

More on jobs and education.

If you're looking to continue your education without the high costs, check out the Liberty Classroom. For homeschooling options for your kids, try the Ron Paul Homeschool Curriculum.


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