Day: August 31, 2022

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The so called Student Debt Forgiveness isn’t forgiveness.

On the one hand I have to say that some of the lending practices are predatory.

How can they not have been? You’ve got kids graduating from High School, without much in the way of financial knowledge. I’ve known kids who couldn’t balance their checkbook. In some cases they don’t understand how credit cards can suck you down the tube if you’re not paying attentions to interest rates.

For a High School graduate to show up on a college campus, someplace they’ve been told all their lives they have to attend, and seeing how much it’s going to cost, then being offered a loan that pays for it all. This is perhaps predatory by its nature.

Maybe the 101 classes for a new college student should be basic money management and understanding how compound interest works. Those classes should be attended before they’ve committed to anything.

Then with the student armed with real world useful information they can make an informed decision about taking out the loan and perhaps this would inform the student’s choice of major.

All that being said, this Federal Loan Forgiveness isn’t forgiveness.

Loan forgiveness would be the lender says “We’re reducing your existing loan by 10,000” and the lender would take the loss.

This situation our Government is going to pay 10,000 to the lenders. Where does that money come from, from the American Taxpayers.

What this means is that folks who’ve paid their loans off, and folks that went to trade schools, and folks who just went to work out of High School will in fact, be paying for college. Not for themselves, but for other people that made poor or uninformed decisions.

At its core, this is indentured servitude.

Taxpayers are being forced to work for someone else.

I was reminded of the quote from Ayn Rand’s Atlas Shrugged.

“I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine.”

– Ayn Rand

This one also sprung to mind;

“The moral justification of capitalism is man’s right to exist for his own sake, neither sacrificing himself to others nor sacrificing others to himself.”

– Ayn Rand

This is not to imply that I’m heartless. Although, I can be.

The question that springs to my mind is; “Would people respond well to a stranger walking into their home and simply taking one of their possessions?”

I’d suggest that most people would react poorly. I believe that most people would get angry even if the person “Needed” the item.

Yet we’re expected to accept precisely this proposition via our taxation process. As if the taxation process somehow changes the basic wrongness of theft. Taxation like this is just theft with extra steps.

I’ve always been skeptical of those who’ve expressed the concept that Taxation is theft. But in light of this loan forgiveness plan coming out of the Biden Administration, I’m rethinking my former skepticism.