Student Loans Are a Total Scam and Here’s Why

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College debt bomb. Let me give you a type of email or response I get from college kids that want to argue with me about debt forgiveness and the government stepping in and forgiving student loans. Sometimes they can get a little bit nasty, but other times they offer the point up there. We were ripped off. We were lied to. We were scammed.

We were scammed. We were told to go out and take out all of these student loans and to take these classes and we were told we’d be able to pay it back and have a job and something like that, yada, yada, yada, yada, yada. Okay, you’re not wrong. Okay, I’m not arguing that you’re wrong. However, there’s a lot of crooks out there. A lot of lies.

to explain to people here on the program conventional wisdom is poisonous. And again, that doesn’t mean society as a whole and taxpayers should have to bail you out. Now, taking a look at some of the numbers right now with the debt situation and the delinquency rates on student loans going through the roof. And again, I was actually shocked to see the amount of people in my generation for crying out loud.

that are delinquent on student loans. I’m pulling my hair out. I said you grew up on the breakfast club and you still haven’t paid back your student loans? What’s the matter with you? But anyway, anyway, the whole thing, the whole thing was a racket. Was a racket?

We told you, we warned you. I went on CNN, I was on CNN with Dom Lemon for crying out loud, making the point, this jeez, this had to be 2005, 2006, that we should eliminate all student loans altogether because colleges and universities should price their product based upon what people could afford to pay.

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What about the novel concept as well that we talked about here on the program? That if a kid is gonna get a student loan to go to a university, why shouldn’t that college or university be partially responsible for that student loan? Have some skin in the game. Novel concept, right? Or why don’t the colleges and universities make the loan out? Again, we allow, as a country, why don’t you mess up this place?

We allow 18 year olds. 18 year olds.

by the millions, tens of millions, to sign themselves up for a quarter million dollars of uncollateralized debt many times before they’ve even ever had a job.

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Be before you have a job, no skill. College degree. College, don’t work here. You graduate with a high school degree and they’re giving you that type of money. They’re not even asking what you’re gonna major in. don’t even know what you’re gonna do with the money. Just that you’re going to college. Now why is that? Why would any lender in their right mind ever do anything like that? Well, you just checked into the…

You checked into the college version of Hotel California. You can’t discharge that loan in bankruptcy. It’s gonna follow you around forever. Follow you around forever. They’re gonna be able to bang you out for fees and bang you out for interest if you pay late. You can’t discharge it.

No brainer for them. What type of evil freaking genius came up with this? Now kids, I want you to understand something. Okay? You may have done real well. You may have done real well in high school. You may have gotten straight A’s. were student government. You played sports, whatever your instrument, whatever it may be. I’ll tell you something. I don’t care if you got into Harvard.

I if you got into Harvard, great background. what do you think? If you needed to borrow money to go to Harvard, what do you think if it was priced according, again, on collateralized loan, what type of interest payments would they actually charge? If you could, if you wanted to, discharge that loan in bankruptcy court. Take a flyer on it.

Six percent? Six and a half? Seven? That’s mortgage right now. No, you don’t pay your mortgage, they take your house. Ten? Nah. You’re talking 18 to 25 percent and that’s if you’re going to Harvard.

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Did you say you’ve been lied to been lied to by the people and power people in Washington, D.C. by higher education for all of this nonsense? It’s all completely nonsensical. You get that this is where we’re at today. And we haven’t done anything. Has is anything changed at all? You know, we’re battling over right now and colleges and.

Cutting checks to the federal government for a se-

You can’t solve this problem. No, it’s too entrenched. There’s too many moving parts. There’s too many people that are making money off this. Colleges and universities, they got way more useless people and administrators working there than they do actual professors for crying out loud. You know it and I know it. There’s schools out there. More often than not, you barely even meet your professor. You’re speaking to a TA most of the time.

You’ve been duped. They set it up. It’s a ruse. It’s a scam. Understand that. Okay. Understand that, but also it’s a very expensive ticket that gets you into certain positions in life. I’m not arguing that point. I’m not, you’re not getting a job. You’re not getting a job on Wall Street with a high school diploma. Just not happening. You have no choice but to do this, but you have to be smart about it. You can’t get yourself into debt.

Yeah, you gotta get great grades and you gotta go to a state school that you can afford.

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Too many kids out there. Again, I feel, again, you don’t think that I, you know, I go off on this all the time. You don’t have any compassion for these kids. Yes, I do. I do. But again, we live in a place in a country, quite frankly, where I don’t think the taxpayers should be burdened with this. You want to come up with something saying the colleges and universities here in this country have got to make these kids whole? I don’t know. You figure it out. I could care less.

They’re all hedge funds with nonprofit status as far as I’m concerned. Have at it, I don’t care, come up with something. But no, it can’t be on the taxpayers. But at some point in time, people, have to wisen up. Watchdogonwallstreet.com.