Biden Cancels Student Debt or Interest?

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Senator Elizabeth Warren one of the high profile campaigners for student debt cancellation.

This week U.S. President Joe Biden announced that student loans for borrowers who earn $125,000 will be canceled. The issue is what binds twins in the womb: the loan and interest.

We cannot talk about free enterprise without mentioning interest. Students signed on the dotted line that they’ll pay interest on federal student loans. It’s the American way. It is called capitalism, the grout of so-called developed countries.

Interest. What is interest? Punishment. It’s punishment for not having cash money thus forcing you to approach banks to buy a house, car, vacation or starting a business. When you buy a condo or a flat, you sign every page of the bank loan agreement.

There’s another punishment down the road. Interest is somewhere in those pages but you’re are so happy about being a homeowner, you miss the little section that says interest keeps growing, if you miss payments.

The Biden administration might be sympathetic to the idea of student debt cancellation, but it might have adverse consequences for the capitalist system, driven by interest.

1.  I can’t pay my mortgage. Can the bank cancel it?

2.  I can’t pay for my car. Can the bank cancel the loan?

3.  I had a great business idea. I got a loan but COVID-19 hit before the official opening. Can the bank cancel the loan?

4.  I can’t pay my credit card debt. Can the bank erase it completely?

5.  I ended up staying in the hospital for two months. Can it cancel the debt?

Because of interest, what was $40 000 many years ago, now has a hunchback, which might be half of the loan. How do supporters of student debt cancellation convince America that it’s not the same thing as these bullet points?

By: Nonqaba waka Msimang.

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