From time to time, the amount of control the government has over all its citizens becomes obvious, but not in a good way. After all, the fiat currencies are losing to the cryptocurrencies because of the same argument and the shift in interest is too obvious. In this post, we are going to explore the The Great Student Loan Scam in detail and make you understand the ripple effect it has and the long term consequences it holds.
The following information consists mainly of our opinion and the information taken via many sources online. So, keep an open mind and read through the passage to understand everything about the actual situation. Many analysts and economists complicate the data and even add political drama to the equation to make things interesting.
However, the end result is something which doesn’t reach the right target audience. We have simplified the subject matter to its bare form and lined up the information in a way which can be understood easily. Carry on reading and let us know your opinion in the end by leaving us a comment.
What is The Great Student Loan Scam?
Before we dive into the details of the The Great Student Loan Scam, we need to introduce you to the basic facts about write offs. Government is an entity which controls the inflation percentage, debt and currency circulation. One wrong move from them might make or break the 99% of the population.
Quite often the worst hit people are most likely to be from poor and middle class families. President Biden is being pushed towards making new changes to certain policies which could cancel upto $50,000 in student debt per borrower. They are said to be using the pandemic as a smokescreen to write off billions worth of debt.
According to the Education Department analysis, as much as $435 billion in student debt will be written off in the near future. While the thought of students getting a break on their debt might sound like a win-win situation at first, understand that things are not that straightforward. For starters, the government is using people’s money in a counter productive way.
The allocation of funds is not transparent as it could have been. As the number of flaws with the execution of student debts is high, many people are under the impression that President Biden might just be acting like a puppet by continuing to bring into existence various objectives of Obama’s last term. To know about the core problems created by the proposed plans, continue reading.
Heart of the Problem
If you take an in-depth look at the situation, it becomes pretty clear that the core issue at hand is the corrupt use of power and lack of transparency. The Great Student Loan Scam began in 2010 when the democrats supposedly created a budget saving by putting an end to the Federal Guaranteed Loan program in order to fund the Obama Care Project.
Mr. Obama said that the move is estimated to save around $68 billion in the next few years. Though there is no actual way of confirming or cross checking the details, so far that hasn’t been the case. Student loans are still a huge burden to people who have taken debt to fund their education and many of them are paying a heavy price for it.
The plan does make it clear that the entire amount can be forgiven if the candidate meets certain criteria, but it has a long period of repayment plan attached to it which makes it not worth it for a large group of people.
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The Great Student Loan Scam Effects
The economy is in a strange place and the pandemic has only made the situation worse for the bottom half of the population. People who have taken student debt are finding it hard to clear it off because most of the payments they make only goes to the interest side and it never touches the principal amount.
Some people are struggling with the loans even after a solid decade which certainly tells us a lot about the way the system is structured. The little guy always gets crushed and the harassment from the recovery agents or agencies also is huge. So, plan carefully if you are considering to take on any kind of loan and negotiate the deal beforehand. We are aware of the fact that there are tons of services and firms which claim to make the whole process easier.
Sadly, most of them will never have the best interest of the consumer in mind and this sector is also plagued by frauds. Our best advice to all our readers is to do proper background checks and always shop for interest rates. Remember, the numbers might seem less in the beginning, but they quickly add up over the years.
The Great Student Loan Scam Verdict
Student Loans are estimated to be around 1.6 trillion dollars in the Federal balance sheet. While steps like “income based repayment plans” bring a new flexibility element to the equation. It is too little too late and certainly it doesn’t work for everyone. While the plan mentioned above might provide some cushion to the students, the merits are few compared to the list of disadvantages.
If the situation ever gets bad, then the only solution would be to reset the system and provide another injection of liquidity into the markets in the name of economic stimulus. In other words, if the reset does happen, the government has to print new currency and that will drive the overall living expenses sharply.
At the end of the day, there is no easy way out of this sticky situation for the Liberals. As normal people all we can do is hope for the best and believe in the government to find the solution within the next few years.
What do you think about the long term consequences of The Great Student Loan Scam? Comment your take on the situation below.
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