Student Loan is not a Scam, it is Plain Robbery!

Why you should never take a loan to go to school

Photo by Ruth Enyedi on Unsplash

I still don’t get it. Why would someone in their right minds decide to take a loan to go to school? Perhaps they are being tricked into it. Perhaps it’s gotten so common that it’s not even something subject to critical thought.

Okay, let’s begin. First, let’s consider the pros of student loan. A young person does not have the funds to go to school. The schools are very expensive. So, a financial institution loans this young person the money required with the promise to pay back (with the job gotten with the school certificate). The loan is based on compound interest which increases with every delay in repayment. What’s good about this?

  1. School graduates are forced to get into the system, start contributing to society and start earning
  2. It encourages people to maximize their time to make the most money to quickly repay the debt they owe
  3. Gives a lazy chance and opportunity for someone who doesn’t have the money to attend school
  4. Reduces the number of the unschooled and readily provides skilled labor for the society

This is awesome, right? Oh no, it is extremely terrible. Now, be calm enough to understand the point here. I know it may be hard for you, but try to have an open mind.

I would never take a loan to go to school. I would never encourage anyone to take a loan to go to school. The reason is simple:

Do you want to be a slave all your life?

The borrower is a servant to the lender. If you take a loan to go to school, the best part of your life will be spent as a slave to the system. Slavery in the modern world is not by chains and hooks, rather it is through debt. And student loan is the worst kind of debt in the history of mankind. Let me explain.

If you want to borrow money from a financial institution, you most likely put down a collateral. The institution can repossess your collateral if you do not have the capacity to pay back your loan. In the case of student loan, you are paying for an “education”. If you can’t pay back for one reason or another, your education cannot be repossessed. Your school certificate cannot be ceased. The institution cannot take back the school experience that their funds have enabled you to get. So, you are their debtor for life since they have nothing to repossess until you pay back in full. Plus, their goal will probably be for you to take the longest time in repaying so the interest on the loan will be magnanimous, hence their profit on you.

The question now is this; is it worth it? Is it your life so worthless to you that you can slave it out for money just to have a qualification that carries a likelihood of getting a good job? I know some get good jobs and make enough money that they can repay in earnest. But what about the others? Even those who have good jobs that pay good money often get trapped in life also. Now that the earning is good, they think of a house, a car, marriage, then comes kids. In the end, they are just one heavy carrier of debt. And you know what? Life happens! You can always count on one thing going wrong. Maybe a divorce or a medical condition or job loss, one thing leads to another and life is literally in shambles. But it all goes wrong from the onset with student loan.

I would never have taken a loan to go to school. I never had the opportunity available and I thank God for that. Now don’t get me wrong, I didn’t say schooling is bad or that you shouldn’t go to school. What I am saying is that taking a loan to do it is not at all wise. It will rob you of the best part of your life.

The normal ways for people to go to school are thus:

  1. If your parents or guardian can afford to pay for the school
  2. If you get a full scholarship
  3. If you get a half scholarship and your parents or guardians can afford to pay the rest of it
  4. If you have an income (from a job or investment) that can pay for the school
  5. If the fees are subsidized and you (or your folks) can afford to pay the leftover
  6. If someone with a collateral takes a loan (which there is income to repay) and then uses the loan to pay for your schooling

Anything that has to do with your dependence on getting a job to pay back a loan is just slavery. If you think it’s okay, then I doubt if you have a plan or a dream for your life. For those who would say that the system empowers young people who are from underprivileged backgrounds, let me just say this; when there were not student loan system, underprivileged young people who were focused and determined found a way to go to school. Go find out about the famous Abraham Lincoln, and how he got himself educated. Student loan is not helping the poor get advantaged and educated, rather it is making the poor miserable.

What is more important to you; a good job plus a nice house and nice car or physical, mental and emotional freedom?

The interesting thing is this. Everything going to school offers to bring you is very uncertain. The probability of you getting the life what you expect after school is less than 80% (some would even argue less than 50%). And let’s say you are part of the lucky ones, the probability of nothing going wrong in 7 years is less than 10%. Why would you want to bet on these uncertainties? Why would you take a chance on the hope that life will be rosy after school?

The response many would say to this is this: I had no choice! That is where I have to correct you. You always have a choice. The problem is that student loan has been made so easy and it makes many too lazy to think or to take the hard way. There is a choice if you would dare to think about it. I dare you to write down 10 ways you can go to college without taking a student loan. It might take days of thinking, but I am very sure you will count ten other alternatives to go to school without the student loan. Here is the big question:

Do you want to suffer now and enjoy later or you want to just relax and take the lazy way now and pay for it later?

Here is the other side of it; is school really that necessary? Are you living on purpose or you are just wandering aimlessly in life? Is your life defined to you or you are looking for affirmation? Let no man deceive you, life is not simple. Life is not direct. There are no automatic buttons anywhere. School is definitely not an automatic button for anything. It’s a good desire to want to go to school, but don’t be enslaved because of it.

To the pros of student loans highlighted earlier, let me give you a balanced view of it:

  1. You don’t have to go to college before you contribute to the society and earn. Most of the remarkable entrepreneurs we have in the world are dropouts or people that didn’t go to school at all. Being a responsible member of the society is about seeing a need and meeting that need. You don’t have to slave yourself to realize that.
  2. Exchanging time for money is slavery. The major reason why people hate their jobs and can’t quit today is that they have a debt hanging down their neck. If you like what you do and earn on it, that’s great. But if you find your job choking, you should be able to quit. If you can’t quit, you are in a prison. You can make a lot of money doing what you find fulfilling.
  3. If you don’t have the money to go to school, you can always find out how to get the money. It might entail getting a job, saving, and making smart investments. It might be going to learn a course you can afford, and navigate your way from there. There are myriads of ways to go to school without student loans
  4. The problem of the society is not the lack of schooling but the lack of education. They seem similar but they are not the same. School impresses a mental knowledge, education transforms and cultures a person. Education can be experienced in several ways outside of the walls of a formal school. Also, knowledge impacted by passionate people goes a long way to educate much more than ideas induced by a school system. There are books that a person can read and be educated, however, going to school does not automatically guarantee that education.

Student loan would be a scam if no value is delivered to the student based on it. But in most cases, value is delivered but the value comes at a cost far more superior than the value. The cost is freedom. This is why it is a robbery. It is a sleek robbery of people’s freedom in an unsuspecting way.

To add to this argument, if you remain unconvinced, go and find out how the banks afford this money that they loan out to the students (keyword: fractional reserve). Go and find out how central banks run the money game (Keyword: quantitative easing). Go and find out how much money student loan debt is in the USA (Hint: it’s in trillion). Go and research what interest rates are and how they affect loans given by banks. You may not be sure of the life you want, but let the life you don’t want be clear to you.

This is a perspective, but I hope you’ve picked up something

Cheers!

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