Student Loan Forgiveness - Advice From a Slightly Different Perspective

AD Robles

Subscribe

Download

Share

00

00:00

All right. All right. Let's give a slightly different take from the student loan controversy.

00:08

I've talked about student loan forgiveness before, and I think most people are very reasonable.

00:14

They understand that the student loan program of the United States is a complete scam.

00:20

They get it. They get that people were lied to. They get that they're definitely predatory loans.

00:25

There's just no question about that. A lot of people understand that, but at the same time, they're very hesitant to say everybody else should pay the penalty for those predatory loans.

00:36

Most people are reasonable, and they say, look, if you want to forgive these predatory loans, then you have to impose the cost on the banks, the people responsible for the predatory loans.

00:47

That's obviously never going to happen. People are very upset about this. I don't want to talk about the morality of loan forgiveness.

00:54

To be honest, I think that's a bit of a nuanced question. Whatever. That's not the point.

01:01

I don't care. What I do want to talk about, though, is what do you do if you're a

01:07

Christian and you're in position to get your loans forgiven or at least a portion of them and things like that.

01:14

I am not in that position. When I got married, I married into quite a bit of student loan debt.

01:19

I had some student loan debt of my own as well. What we did was we saved money and we paid it off over time.

01:28

Then I had a bit of a windfall, and we ended up paying it all out in one fell swoop.

01:35

I'm not in this position, but I'm trying to think what I would do if I was in this position, in the position to get some money from the government, which, again, has really no money of its own, but whatever.

01:49

What would I do? Here's the thing. If you're in a position to get some of your student loans forgiven,

01:56

I would take that opportunity. That's number one. I would definitely take that opportunity. If you've paid taxes, which if you've been alive in the

02:07

United States, you probably have paid taxes, you've paid into this ridiculous system by force.

02:14

Now you have an opportunity to get some of that money back. The criminal is offering to give some of your money back.

02:21

I would take that opportunity, and I wouldn't think twice about it. Do that.

02:27

Here's my warning, though, for you. The moral hazard is the point of this policy.

02:36

If you don't know what moral hazard is, I would recommend looking it up. Basically, the government often creates these situations where they do something that they claim is to help people, and really all it does is incentivize bad behavior.

02:51

In this situation, there's a clear moral hazard here. It's going to incentivize people continuing to waste money in college, continuing to go into debt for worthless degrees, because the thing is, if you ever get into trouble, the government's going to come and bail you out.

03:08

It creates this perverse incentive for people to come and go into debt to get their stupid gender studies degree, and then they can't pay it back, and then they'll be bailed out and stuff like that.

03:19

By the way, the government does these moral hazards in so many different areas. I mean, the bank bailouts during the

03:25

Great Recession, that was another moral hazard. Obviously, the banks were acting inappropriately.

03:31

They were acting irresponsibly with the money that they had, and then they needed to be bailed out by the government.

03:38

Then when you do bail them out, they don't actually learn any lesson. They don't learn any lesson.

03:43

Look, those companies should have gone out of business, and then they would have learned a very valuable lesson. It would have been very painful for a lot of people, but they would have stopped, at least presumably, since they don't want this terrible thing to happen to them again.

03:55

They're going to stop doing the thing that they were doing. These moral hazards are created all the time by the government's actions, bailing people out, whether it's big corporations or individuals or whatever.

04:08

But here's the thing, though. I think a lot of people think that these moral hazards are unintended consequences.

04:18

I don't think it's helpful to think about them that way. I think that's the point. The moral hazard is the point.

04:24

They want you in a subservient position where the only way you can be bailed out is if you vote for them.

04:31

If you vote them in, you can vote yourself benefits. A lot of people did this. A lot of student loan debtors did this.

04:39

They voted in the Democrats in order to get some benefit for themselves. Now they're getting paid.

04:46

At least they're going to get paid. At least they're not like a prostitute that does the paying. There's a lot of Democrat voters that end up like that.

04:53

There's a lot of Republican voters that end up like that. But they're getting paid for their vote, and this is the thing.

04:59

Here's the thing. If you take advantage of this program, understand going in that they're trying to get you to be as subservient to them as possible.

05:10

And so don't be like the banks that don't learn the lesson.

05:15

If you found yourself in student loan debt, and you were having a hard time paying it back, and you hadn't done it yet, and then you get this gift.

05:24

You get this gift of your loans being forgiven. Remember that, and stop going into debt.

05:31

Don't encourage your children to go into debt for college. And especially if they're getting a worthless degree.

05:38

Don't continue yourself to go into debt. See, that's the problem. See, the moral hazard is the point.

05:46

They want you to go into debt, and they want you to understand that they will always be there.

05:52

Daddy will always be there to bail you out. But the problem is it's a lie. They won't always be there to bail you out.

05:58

They don't have the money to do this bailout. They're going to do it because they can counterfeit with the Federal Reserve.

06:04

But eventually that's going to come to an end too. And so all these people that find themselves in trouble, and they're getting bailed out a little bit here, so many of them are going to fall for the moral hazard.

06:17

They're going to continue to do what they always did. They're going to continue to spend like they've always spent. A lot of them are going to continue to promote college and universities as the way forward.

06:26

And a lot of them are going to continue to think our kids are going to go into debt and all this kind of stuff. Don't be like those people.

06:33

If you take advantage of this program, go ahead and do it. But just make sure that you're not falling for what they want you to fall for.

06:40

The moral hazard that they want you to do. They want you in debt because when you're in debt, you're a slave.

06:46

That's something that comes from the Bible. The borrower is slave to the lender. And so they want you to borrow.

06:53

They want you to go into debt. Don't fall for the moral hazard.

06:59

Don't take the bait. Don't take the lolly. You see what I'm saying? So that's my advice if you find yourself in this position.

07:07

You get this windfall from the government. And look, the reality is people are pointing out that this is inflationary and everyone's going to end up paying for it.

07:16

And that's true. Like you need to understand if you do take this money, it is inflationary. So everyone else is going to be paying for your debt.

07:24

Poor people who never took out that loan are going to be paying for your debt. That's a fact. But I don't really have too much of a problem with that when

07:33

I'm doing this mental calculus, because literally everything the government does right now is inflationary because they don't have any money.

07:39

We're in tremendous debt. So every single opera, even the legitimate operations of the government right now are inflationary.

07:46

So you need to understand that that's what you're doing. So if you're not comfortable with that, then don't take it. Obviously, I'm not going to encourage you to go against your conscience.

07:55

But you know, listen, I'm not for it because it's robbery and I understand that.

08:03

So I guess I did get into that a little bit. But but yeah, what my main point of this video is just don't do what they want you to do.

08:13

They want you to get bailed out here and to continue living the way you've been living. Stop right now.

08:19

You need to reduce your expenses. You need to increase your income. And you need to stop playing around with debt because you've already proven yourself irresponsible with it.

08:28

So keep that in mind. And don't think you're smarter than you are. I'm not trying to you. I'm just pointing out the facts.

08:34

Don't think that you're smarter than you are. And don't take the bait. I hope you found this video helpful.