9 July 2012 0 Comments

Student Loan Bubble Part 6: Richard Vedder – 3 Rationales Refuted and Eight Problems Explained

These programs are commonly rationalized on three grounds: the first, the assurance that more young people receiving a higher education has a positive ” spillover” effect for our country;  Second the grounds that higher education promotes equal economic opportunity (or, as the politicians say, that it is “a ticket to achieving the American Dream”); Third,  that in the absence of federal loan programs, too few students would go to college, since private markets loans to college students are defective.

With this as an introduction, let me outline eight problems with federal student grant and loan programs. The list is not exclusive.

 

READ MORE  Federal Student Aid and the Law of Unintended Consequences  Hillsdale Imprimis May/June 2012 • Volume 41, Number 5/6  Richard Vedder Professor of Economics, Ohio University

 

 

 

 

Richard Vedder PhD is Distinguished Professor of Economics at Ohio University and is Directer of The Center for College Affordability and Productivity

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