3 ms·
It's called adverse selection: A lot talented students happen to have one or more wealthy family member (s) who will either lend or donate the money to them. S
by nroets 8y ago
It's called adverse selection: A lot talented students happen to have one or more wealthy family member (s) who will either lend or donate the money to them.
So commercial lenders receive a disproportionate number of applications from students who will have a difficult time finding a well paid job.