I promise

  Investing. What is an investment? It is giving something in exchange in anticipation of a return. It makes no difference if it is time or money that is being invested. What I'm counting on is a return greater than what I invested. That's pretty basic wouldn't you say? Not a difficult thing to understand at all. Yet, there seems to be a big misconception these days. That is, if you make an investment but fail to get a return on that investment, you should simply be forgiven, get your money back. You can't get back the time or any emotional investment you may have made that much is plain, but what about the money? Some presently think if you borrowed that money, and the investment fails you should be forgiven the loan. 

 That's when it comes to student debt anyway. The Biden administration is proposing just that. What is the message being sent? If things don't go your way, you are not responsible for that. That is the message! You can blame the bank, the employers, disease, economy or whatever, but it isn't your fault. You borrowed that money anticipating a return, you shouldn't have to pay up if it fails. In fact, the ones that didn't borrow any money, didn't make any investment in your venture at all should have to pay for that. That's the message I'm hearing, mostly from the ones that owe the money. 

 I hear the lament I'm saddled with debt. Well, you are the one that cinched it up bucko! If you sign the documents, borrow the funds with a promise to repay them, that's what you have to do. You don't get to blame McDonalds because you gained fifty pounds eating big Macs and you don't get to forget about your loans. Both were choices you made. If you invest in a degree that doesn't pay enough for you to repay your "investment" you just made a bad investment! That's how it works. Hey, somebody invested in every failed invention there ever was. Heck some folks even invested in CNN+ LOL They don't get their money back. It was a bad investment, a bad choice.

 There are no guarantees in life. Just because you go to college and get a degree doesn't guarantee you a big salary. There is the law of supply and demand. College degrees are not in high demand. It's a simple fact. Now you can complain, moan, and insist otherwise but that is the simple truth. You see most colleges and universities exist for a basic reason, to make a profit. Yes, they are enterprises engaged in making money. These colleges and universities have investors. The investors are just like the student, they expect a return, to make more than they invest. Financial institutions exist for the same reason, to make money. And all of them work hand in hand. Yup, takes money to make money. 

 Those institutions lending the money are investing in the future. They are counting on a return. It makes no difference what the product is, the objective is to make money. In this instance the product being financed is? Interest. That's the part that gives them a return on their investment. Same as a payday loan. So there it is economics 101. I didn't have to go to college to know that much. Learned that lesson as a child when I had to "stand by" my word. If I promised, I was obligated, no taking it back. And what do you call those loans? Promissory notes. Amazing isn't it. 

 Are we going to simply forgive debts because you made a bad investment? What if your investment was a good one, then you have to pay it back? How are we going to monitor all of that? Wouldn't that rule have to apply to all investments? I mean, what if I just want to open a donut shop. Shouldn't I be loaned the money and decide later whether I can afford to pay that loan back? How much profit am I allowed before I have to pay back? If I have student loans how much salary am I allowed? Are student loans any different from any other loan? 

 Oh but they are predatory! Really? And new and used car salesmen aren't? Payday loans, Quicken loans, Next day loans, and dozens of others aren't? No one is saying those loans should be forgiven. Interest rates on those loans can reach 35%! All the credit card "preapproved" offers you get in the mail aren't predatory? If you get "caught" by the predator that is your fault! You are the only one that can sign the promise and be held to account for that. Borrow the money, pay it back. Simple. It's a promise.