If you wouldn’t give a 17 year old a credit card, why allow him to even consider a student loan?
The government is providing fuel for an academics arms race that is going on all over the country by allowing kids to borrow huge amounts of money at very, very low interest rates, and many of these students are really not knowledgeable about finance and so forth. They go out; they borrow a lot of money. The colleges raise their fees more than they otherwise would. This provides extra income for the colleges, which goes for a ton of different things — luxury facilities, more administrators, higher pay for people, and the like — and makes college less affordable.
Instead of expansive loan programs, how should the government help deserving students?
Help low-income students by giving vouchers or scholarships. That would be fine. But empower individuals and provide information…
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