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Subsidized loans are subsidies, in the form of 0% interest when you're in school and very low interest rates after. Those both cost the government a lot of mone
by marcoperaza 11y ago
Subsidized loans are subsidies, in the form of 0% interest when you're in school and very low interest rates after. Those both cost the government a lot of money that the borrower would otherwise pay.
- dragonwriter 11y ago> Subsidized loans are subsidies They are subsidies on the cost of borrowing money, but not on tuition (except at a very small ratio); but they act (in terms of effect on tuition prices, for the reasons discussed in my previous post) like a much larger direct tuition subsidy. because of this, it is much more likely that loan subsidies have a perverse effect on affordability than grants.