Student Loans are a Bad Idea

Recently President Obama signed an executive order into law providing for a student loan debt forgiveness system whereby the amount a person would have to pay would be no more than 10% of their income and if the loan is not paid within 20 years it would be forgiven. This benefits people who take out large student loans more than those that take out smaller amounts. Consequently, the question of whether we should “forgive” student loans was put to me.

I had student loans way back when but I paid them off. Furthermore, when I did have student loans my state college tuition was around $350 dollars a semester, quite a far cry from the thousands of dollars the inflated price is today.

The whole situation is a mess and here's why. The government should not be issuing student loans in the first place because it inflates the price of education. The more loans available, the higher the tuition rises and on and on it goes. It's another ponzi scheme just like the mortgage fraud mess. The issuers of the loans, ie the Banks, get the money, the money is made up out of thin air (just like any credit), the people are made to pay interest on the fake money, the interest is raised (like adjustable rate loans), they can't pay it, the government ergo YOU! "bails" out the banks...who wins? The BANKS and the people running the institutions whether they are colleges or mortgage companies or whomever..but the house, I mean the bank always wins. There should be no bail out, just like we should not have bailed out the banks in 2008. When a bail-out happens the debt just goes to the people, it is not erased. The whole system is fraudulent, people need to opt out of the system entirely.

The United States government started meddling in the student loan business in 1965, ever since then the cost of tuition has risen exponentially. When will people start to put the pieces of this puzzle together? Loans..any kind of loan is a trap. It's not free money, it's not a free education, it is a slave trap to enslave you with debt. The institutions making the loans are not lending you their money, they make the money up, the money is nothing more than digits on a computer. Then they make their money through interest and bail outs. It's the same ponzi scheme over and over again. The type of loan changes but the principals remain the same. The banks lend out fake money to X, X pays interest that builds up to an enormous amount of debt over the course of the loan or X cannot pay, X was never meant to pay, X refinances the loan at a higher interest rate along with fees and whathaveyou, X defaults, the banks either win by getting interest, a bail out or in the case of the mortgage mess, they confiscate the home, collect on insurance and get a bail out! Ostensibly, since student loans have no collateral they are subject to stricter default penalties, for example student loans cannot be eradicated through bankruptcy.

So what can we do? First of all, if you don't have a student loan, don't get one. If you can't afford a higher education do something else or find another way. The whole hype about getting a higher education is nothing but a sales pitch. I know many people who chose not to go to college and they have made more money over the long run than many college educated people. Moreover, the money they saved by not going to college they were able to invest in either businesses or homes, thereby living debt free for most of their lives. It's time to shut off the TV and start to think for ourselves.

If you already have a student loan and can't pay it because you are unable to get a decent job due to the planned collapse of our economy ...don't pay it. Sure, your credit will be ruined but so what. It's time to turn the system on its head. Who says you have to play by their rules? Who says you have to have good credit? The banks? It's time to quit playing by their rules.

I am against a bail-out and/or forgiveness of student loans because that just benefits the banksters, and perpetuates the system.

Money As Debt

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Comments 49 comments

A Little TRUTH profile image

A Little TRUTH 4 years ago

Right on! When I went to college, student loans were unheard of. We just got a summer job which easily paid the tuition for the year.

And you’re right about the hype of higher education. If you look up etymology of the word “education” you see that it has more to do with “training”, not LEARNING. You’re being “trained” to follow procedures, not to think. The only thing you can learn in school is what they want you to learn. You’re better off teaching yourself and maintaining your solvency and ability to think clearly.

Other good sources that explain how the ‘money’ that is ‘loaned’ comes out of thin air is the booklet “Modern Money Mechanics” published by the Federal Reserve Bank of Chicago (now out of print but available on the internet), or the video series “Money as Debt” on YouTube.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

The Video Money as Debt is featured below. Thanks for commenting "A Little Truth".


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX

Never borrow what you can't repay. I think I learned that from our federal government itself.

The Frog


A Little TRUTH profile image

A Little TRUTH 4 years ago

I don't see a video below or anywhere.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

You don't see a video? It's above the comments.


A Little TRUTH profile image

A Little TRUTH 4 years ago

No video. Below the hub text is your fancy artwork, 4 links to hubs, 3 google ads, voting buttons, comments.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Weird, I have them right after the links. I notified Hubpages so we'll see what they say, thanks.


independentwriter profile image

independentwriter 4 years ago from the Snowy Northeast

Brie,

Excellent article! The one concern that I have is for those who took loans that lead them to careers in which they have to be licensed. For instance, if a teacher has student loans and she doesn't pay them back can the state take her license for not paying the loans back. I haven't had a chance to research it but I was curious if you would know the answer.


RichardPac profile image

RichardPac 4 years ago from Sunny Florida!

I wouldn't recommend simply not paying them back , as that can have devastating effects on your credit. Even if you declare bankruptcy, student loans still follow you. I do agree that the system is broken, but my wife and I work hard to repay our school debt and try to set an example for your new to arrive little one. I actually wrote a hub about how to reduce student loan debt, if your interested in taking a look at the flip side: http://hubpages.com/money/How-to-Reduce-Your-Month...


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Hi Independentwriter, I don't think that has been done YET, but I have read that different states are considering that. Thanks for commenting.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Well RichardPac, I do NOT believe in supporting a broken and fraudulent system which is why I suggested not paying them. The credit system is being used to enslave and control people, the only way to fix it is to #1 stop using it and and #2 ignore it.


Jim 4 years ago

Nice one Brie. also, why it takes four years for your average degree and more again for a masters. It's all a game as you say. But, as its all just free money created out of nothing, I'd prefer free education for all as opposed to no education or education for the wealthy elite. Educated people always ask why, ignorant people fear change. I'm all for turning the system on its head, I like that


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Thanks for writing Jim. The thing is that it's not just free money or a free education, someone pays, someone always pays. The system we have now benefits the people who create the money out of thin air, that system must be changed and it will be; either because it will collapse or because the people will get fed up and restore a sound money system. I would encourage you to watch "Money as Debt" (the video above) and Money Masters. Thanks again for commenting.


sheila b. profile image

sheila b. 4 years ago

I agree with all you wrote.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Short and Sweet Sheila B! Thanks for writing!


HarperDavis profile image

HarperDavis 4 years ago from Midwest

Great hub. As a fairly recent graduate of higher education (2010), I can attest that it's pretty much a scam. I went to your average state school that charged about $15k per year for tuition, room and board and random expenses like a $50 laundry fee. By the time I graduated it had risen to just short of $17k. I worked at least two jobs at any given time to support myself. Fortunately I graduated in fours and got my first job in my field (paying minimum wage) about two months later, making me "successful" in the eyes of my peers which was no doubt creepy. I'm doing well now, but suffering under the burden of my loans and some of what I had to take on (credit debt) to stay afloat.

I'm happy to say less than a year after my first job I got a position typical of someone much further along in their career. I'm of but a few "successful" grads among millions though, and still have loans just the same.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Thanks Harper, sounds like you are one of the lucky ones!


RichardPac profile image

RichardPac 4 years ago from Sunny Florida!

Brie, in your reply you stated that you would not support a "broken and fraudulent" system. Then why not simply not take out any student loans? It seams borrowing money without intention of repaying it would be more of a fraud then the actual loan system I would think.. Just a thought.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

I agree that the loans should not be utilized, however, many people were not aware of the scam before they got caught up into it. For those people, they should opt out of the system and bankrupt it completely. It's a scam and the victims are the students and the taxpayers.


RichardPac profile image

RichardPac 4 years ago from Sunny Florida!

Student loans will follow you through a bankruptcy though, they are rarely absolved like credit card debts, or credit that has been used to purchase material things. A college education is something that can't be repossessed or reclaimed, like a car or even a house.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

I know, the whole system is fraudulent and needs to be overhauled.


CJ Sledgehammer 4 years ago

Another excellent article, Brie!!!

I read another article recently from a college professor who said that when he was going to college back in the 60's, a student could pay for tuition, books, rent, and fees by working just 10 hours per week.

He went on to say that the average student today must work about 60 hours each week to do the same, which is not really possible, hence the college loan debacle.

I love how you think, Brie, you really have it together!!!

Best wishes, behave, and be well - C.J. Sledgehammer


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Thanks CJ, that means a lot coming from you!


Dolores Monet profile image

Dolores Monet 4 years ago from East Coast, United States

The trouble is that there are many jobs you can't get without an advanced degree. My son could never really get ahead without one and will wind up owing quite a bit of money. But his income, with the degree, will be one that he can live off of. So many jobs, today, just don't pay a living wage.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

That's good for you but I think most kids are wasting their money and will never make back their investment. Thanks for commenting.


CJ Sledgehammer 4 years ago

It amazes me how the bankers always get their way. They force people to use credit, because without credit you cannot get a job or if you have bad credit, according to them, you could lose your job.

Then they force the major majority of students to utilize student loans in order to complete their education, but all the students get for their money is the HOPE of getting a good job or career.

It seems the bankers make us all dance to the beat of their drums...it's almost unavoidable.

Love you, Brie - C.J. Sledgehammer


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

It's true BUT there are ways around them..some of which I talk about in my other articles.


CJ Sledgehammer 4 years ago

If one cannot beat City Hall, how is one going to beat the banks who control City Hall?

Iraq, Afghanistan, and Iran are not controlled by the Federal Reserve Bank. They are 3 of just a few nations that have not yet bent over the proverbial couch for this international banking cartel, which is run by the Rothschilds and Rockefellers.

Funny how "America the beautiful" is over there laying waste to these people, with Iran soon to be on the chopping block, and none of these countries were even listed as having participated in 9/11.

It is amazing how much pull these banking families have and what they can get away with.

Best wishes, behave, and be well - C.J. Sledgehammer


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Individually one can do what Jesus did..ignore them. Refuse to play by their rules.


CJ Sledgehammer 4 years ago

But didn't Jesus say, "Give unto Caesar what is Caesar's, but give unto God what is God's"?

I don't know how to simply "refuse to play by their rules". And, if everyone hid in the forests like Robin Hood, how long will that last? I am all ears, Brie...talk to me. :0)

May the God of Peace be with you - C.J. Sledgehammer


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Yes he did but what is Caesar's? Everything is God's.

Everyone does not need to hide in forests but I don't think we should play by their rules..ie, don't use credit, don't buy their products, live debt free, pay cash, barter, live simply, seek ye first the kingdom of God...etc etc.


CJ Sledgehammer 4 years ago

I like what you have said, Brie, but what happens when this country and the world becomes a cash-less society? What then?

It seems the banksters are always one step ahead of us and they have already thought of everything. If one is not able to find gainful employment because they do not have a credit card or credit rating...what then?

I am not trying to be argumentative, not in the least, but perhaps you have the answers to these questions because I do not.

I think one cannot hope to continue to avoid these issues forever. One must, therefore, find those of like-mindedness and together change the status quo from top to bottom.

God be with you - C.J. Sledgehammer


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

If you are in a self-sustaining community you will last longer. Now is the time to start becoming self sufficient. Don't depend on grocery stores for money, grow and store your own food. Don't depend on cars for transportation. Eventually they will hunt us down and kill us but until then you can last a long time. After that Jesus wins!


bamuscarella profile image

bamuscarella 4 years ago from Buffalo, NY

Brie, thanks for sharing this article. I'm currently trying to pay off my student loans with the menial pay I'm receiving despite my postgraduate degree, and can I say that at times I regret pursuing a college education in the manner I did? I've always had a passion for writing and for animals—I wish I would have understood that I could have made my way in these fields without a college education (or at least that I could have waited a year after high school and saved up more money to put toward tuition).

I love A little TRUTH's comment that "education" essentially means to train, not to learn. One of my professors during my first semester of college told us, "You are being trained as citizens of the world." I think I've learned more from my own experiences of the world than I have from school. Granted, my education did point me toward resources to use in researching and writing about my interests, and it has helped me become more articulate and a more critical thinker; but these are skills I was trained to use, skills I developed out of my own desire to succeed, not a PowerPoint presentation I memorized and recited. One thing I have actually "learned" throughout my undergraduate and graduate educations is that I hate postmodernism ... which is more an observation about myself than anything.

I know lots of people my age who have more successful careers than I, and who did not go to college. They pursued their interests right out of high school and have developed rewarding careers in those fields without a degree. I'm not saying that college is bad; however, I wish that high school counselors would guide their students toward other options and alternative ways of creating fulfilling lives for themselves.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

Bamuscarella, thanks for writing. I also hate post modernism. If there is one that thing that is good out of all of this, it's that people are waking up to the understanding that one's path does not have to consist of the planned recipe for their lives, that a person can have a higher quality of life following the road less traveled.


A Little TRUTH profile image

A Little TRUTH 4 years ago

My goodness CJ Sledgehammer, may I suggest that you spend less time with your mind in the box that the bankers want it in? – mad, frustrated, hopeless, helpless, defeated, in fear of what seems to be coming - and more time where you were when you wrote:

“One must, therefore, find those of like-mindedness and together change the status quo from top to bottom.” - [or bottom to top?]

Yes, this gathering of like-mindedness is happening exponentially around the globe. The multitudes of solution groups that have formed are amazing. The good news is much bigger than the bad. There are far more or us than there are of them.

It helps to spend less time at sites like PrisonPlanet and InfoWars, (even though the information is good to know) and more time at sites like DivineCosmos or FreedomForceInternational or reading one of David Icke’s later books.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

"A little TRUTH" I think you are being a bit hard on CJ. I think he is just concerned like all of us. I do not agree with David Icke one bit, however. I think he is insane!


CJ Sledgehammer 4 years ago

Thank you for understanding where I am coming from, Brie. You are one classy lady and I admire your character and the woman that you are.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

You are very welcome CJ, the feeling is mutual (except for the lady part :)


A Little TRUTH profile image

A Little TRUTH 4 years ago

CJ, I didn’t mean to be hard, but to applaud your conclusion that I quoted you on above. You expressed well the positive mindset that is bringing positive results. -And your conclusion is much more important than how you got there.


CJ Sledgehammer 4 years ago

A little Truth, I appreciate the clarification. As they say, "All's well that ends well." :0)

Best wishes and be well - C.J. Sledgehammer


monicamelendez profile image

monicamelendez 4 years ago from Salt Lake City

I've never thought of it as a ponzi scheme but now that you brought it to my attention, it's TOTALLY a ponzi scheme.


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

There are many things like this..not just student loans...read the book "The Creature From Jekyll Island".


Brie Hoffman profile image

Brie Hoffman 4 years ago from Manhattan Author

I agree that you shouldn't get them if you don't have them but refinancing doesn't work either.


Insightful Tiger profile image

Insightful Tiger 3 years ago

Here here! I very much agree with this article! I think tuition is outrageous nowadays! You are right; loans are a trap and I'm still in it right now.


Brie Hoffman profile image

Brie Hoffman 3 years ago from Manhattan Author

All of debt is a trap but these kinds of loans from the government are especially grievous because there is no way out and with the economy the way it is..it's difficult to repay them. Thanks for commenting.


TotalHealth profile image

TotalHealth 2 years ago from Hermosa Beach, CA

Although I agree with the premise of your argument - that the cost to pursue a higher education has become completely outrageous - I do not, however, advocate bailing on loan debt as an acceptable alternative. Rather, students assuming loan debt should consider their chosen degree relative to the job market to determine whether or not the investment is likely worthwhile. Meaning, I definitely would discourage financing thousands of dollars in pursuit of a BA in arts, history, or psychology, but would absolutely encourage going into debt to pursue a BA or BS in math, engineering, or business.


forlanda profile image

forlanda 2 years ago from US of A

Brie. I'm with you. Ultimately, we the tax paying people pay for all these. When I went to college (through a California State University), I was only paying just over $100 per semester, and that was full load. Now I can't believe how much it costs! It's like buying a house. I was always wondering why the cost of college is skyrocketing; obviously the professors aren't making any more money, and the schools aren't even expanding their offerings. In fact, they seem to be always cutting back. I just don't get it. Can you point us to an online article stating that college loans is a major contributor to the rise of college tuition? Thanks for sharing.


Brie Hoffman profile image

Brie Hoffman 2 years ago from Manhattan Author

It's simple "forlanda", the reason is because of these loans. The colleges know that the money is secured by the government ie tax payers so they up the tuition.

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