Student Loan “Forgiveness” is a Ponzi Scheme

Since taking the White House, Joe Biden has done absolutely nothing to make good on his campaign promise to “forgive all undergraduate student loan debt.” That is… until last week.

With much fanfare, Biden announced the “cancellation” of 300 billion dollars in loans. I’m sure that this timing is a total coincidence and has absolutely nothing to do with the fact that midterms are in 10 weeks.

Not to mention that his pause on loan payments just happens to expire right after the midterms end.

But I’m sure that this funny timing is all a *complete* matter of chance. Our President has just been really busy doing… uh, Presidential stuff.

Like spending all our money and ammunition on foreign wars. And telling gun owners they don’t stand a chance against his F-15s. And inventing entirely new words. 

While we’re recapping federal government activity, remember when Nancy Pelosi said back in April, “People think the president has the power for debt forgiveness. He does not. That has to be an act of Congress”…?

Well, thank goodness Mr. Biden found that power right before Election Day! What a beautiful coincidence.

Jokes and sarcasm aside, here’s the ugly truth: we’re watching vote-buying happen in real time.

What’s worse is, in this case, the vote-buyer isn’t even using his own money: he’s using yours. More specifically, he’s transferring money from working-class Americans to the educated elite.

According to The Washington Post, “students from high-income families borrowed the largest amounts,” meaning they have the most to be “forgiven.”

63% of Americans who didn’t go to college are now being asked to foot the bill for their wealthier, more educated counterparts.

It’s also worth noting that over half of all student debt is held by people with graduate degrees… and only 13% of Americans have a graduate degree.

Calling this whole setup a Ponzi scheme isn’t a figure of speech or exaggeration. It’s the truth, and a short history lesson proves it.

Charles Ponzi was a businessman who found investors for a fake “business,” promising huge returns and great fortune for all who entrusted their money to him. Then, he would move on to the next round of investors, making the same claims. Upon receiving their money, he would turn around and use it to to pay off those who invested earlier.

His businesses typically had little real value or legitimate streams of income. But as long as he could convince a few more people that they needed to get in on the opportunity, he could pacify a few more previous investors, and continue the cycle, lining his own pockets all the while.

Sound familiar?

If you grew up in the just-go-to-college-and-you-can-pay-the-loans-later generation, I’ll bet it does.

The longer the higher-ed cartel and their friends in the federal government can convince young people that a degree is a must-have, the better their chances to get people to agree with absurd ideas like loan “forgiveness.”

Their ability to continue this scam is reliant on our blind belief that college is the only option for a bright young person, and that a free education is a human right up there with life, liberty, and the pursuit of happiness.

People try and say student loan forgiveness is the compassionate thing to do. And I do feel badly for those who’ve been pressured and coerced into taking on more debt than their degree is worth, “cancelling” debt is far from compassionate: it’s a wealth transfer from blue-collar to white-collar Americans.

If the government really wanted to show compassion, it would stop writing blank student-loan checks so colleges would actually have to compete with each other and lower their tuition. Allowing the free market to work within higher education would rapidly lead to better degree value and lower costs.

Until that day comes, it’s going to be pretty overwhelming to deal with this system as a parent. Whether your kids are 2 or 22, it’s not easy to know what the best option is, especially in an ever-shifting landscape.

To help families tackle this tough issue, I wrote a whole book on it. (Shocker!)

Skip College Launch Your Career Without Debt, Distractions, or a Degree is a young adult’s guide to navigating the pitfalls of post-graduate young adulthood.

And, hey: despite that title, I’ll admit right now that college isn’t always a total waste of time in every situation… So do me a favor. Before you get mad at me for poisoning the youth against our institutions, try giving it a read!

You might just learn a thing or two—or spare your dearly beloved offspring some expensive mistakes.

Until next time…

—Connor Boyack

Want More?

The Tuttle Twins children’s book series is read by hundreds of thousands of families across the country, and nearly a million books (in a dozen languages!) are teaching children like yours about the ideas of a free society.

Textbooks don’t teach this; schools don’t mention it.

It’s up to you—and our books can help. Check out the Tuttle Twins books to see if they’re a fit for your family!

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