Ignoring the Problem
07/31/2013 | | eisenberg and economics, Elliot eisenberg, Graphsandlaughs, student loan subsidies, Student Loans
Senator Warren’s proposal to make student loans available at just 0.75% actually exacerbates the problem. Cheap loans will increase the number of college applicants, allowing universities to raise prices, like builders did during the bubble because credit was easy. The underlying problem is the rising cost of tuition. A solution: force schools who accept cheap student loans to massively expand online course offerings and guarantee full credit transferability across schools.