October 8, 2021

No one can pay 13% compounded interest on a loan for the rest of their lives. That's what banks are charging college kids. It's loan sharking and usury. Home owners can't pay over 3 or 4% interest, and they build up equity. There is no equity in college debt.

It wasn't that way at first; the government paid the interest. But conservatives said it wasn't capitalism, because it robbed the banks of business. So they turned the whole works over to the banks with no strings attached.

In all the talk about college loans, there is no mention of the loan sharking or the amount of interest. Most college kids have probably never heard of compounded interest. An economics course is not required for a undergraduate degree. All the college kids know is that they get a bill every month for the rest of their lives, and it keeps increasing.

That's why Paying off the college debt won't fix the problem. The loan sharking won't go away if the debts are paid. The banks will just keep doing the same thing.