The entire credit system for education ends up combining government spending and market forces in the worst ways possible. The Federal Reserve Bank of NY drew s

The entire credit system for education ends up combining government spending and market forces in the worst ways possible. The Federal Reserve Bank of NY drew some conclusions a few years ago to this extent.[0] The Federal government provides an enormous amount of free/"free" credit, the schools get cash and the students take on the risk. Coupled with the role of academic institutions as gatekeepers of a shot at a better future, and we get the system we have. Hyperbolically, t only outcomes schools are incentivized to care about are applications (lower acceptance rates raise prestige) and attendance (money is transferred to the school only while the student is attending). [0] https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr733.pdf https://www.newyorkfed.org/medialibrary/media/research/staff...