Continuing our series, we step into the issue of college loans.
Here is my reasoning as to why this is a part of the college cartel
scheme.
The Loans: Loans are used to do many things.
You can use the money to open a business, buy a car, or fix your house.
But we also use it to afford expensive education like college. We
already know that college credits compound the amount of money needed to spend
to get our degree and graduate thanks to my previous issue, but did you know it
is rigged to be perpetually more expensive? Apparently, whenever the
federal government increases the size of the loans toward students, the
colleges rack up their prices and then the government who is giving students
financial aid increase that assistance (usually in the form of a loan) again.
In other words, the colleges know that they can just jack up their prices
on everything and the government will pay for it. Also, the banks who
give out these loans are insured if students default. So banks get money
from the students as they attempt to payback their loans (with interest) and if
they default, the government gives the bank money equal to the money lost
(possibly including accrued interest). You see what is happening here.
The college profits, the banks profit, but the students are stuck with
unpayable loans and the government just keeps perpetuating the problem by
giving out more money.
Conclusion: The loan situation has devolved
into a scam, and it has to stop. This loan situation where some of my
friends owe $100,000 dollars or more is absolutely ridiculous. And you
know what, it pisses me off. I do not owe any debt thanks to a
combination of me saving my money from first grade on up and stocks that my
parents aided me in investing my own money in. With that I paid $25,000
of my own money with my parents paying the rest. But, if I did not have
the credit requirement, and if the colleges priced their education services to
meet with real affordable costs, I would potentially be at minimum, $10,000
richer (and my parents richer too). Loans should not be required to get a
degree, not like this which places people in poverty through debt.
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