To get a bit nuanced I read, that the subsidy is not the primary problem.
It is the guarantee of payment, even on default by the student is the problem.
That is what must go away.
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Can you send me that study/article, would love to read it.
What I did come across a while back was a study done by the NY FED. On the effect of the amount of available credit and tuition rates, they found that increased loan availability did increase tuition costs, but they looked at subsidized and unsubsidized loans and how much they increased the tuition cost. They found:
"We estimate tuition effects of changes in institution-specific program maximums of about 60 cents on the dollar for subsidized loans and 15 cents on the dollar for unsubsidized loans"
https://www.newyorkfed.org/medialibrary/media/research/staff...
Misunderstanding - "I read..." as in, I interpreted the post I am responding to.
(I have an excuse, as English not my first language, but not excusable. Sorry.)
no need to apologize :)
That would set you back to where you were before the related law was enacted, though: droves of kids going to school with public money, then declaring bankruptcy. Public finances were getting robbed and kids had their future compromised anyway (bankruptcy is no joke).
Maybe the schools should have to be partially on the hook, at best financially in some way, or indirectly by a score of failed/drop out/bankrupt students?
Student selection & preparation would get better. Maybe it would trickle down to High Schools.