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Any time you make money easily available for a certain good, whether through debt or direct subsidy, the cost of that good is going to increase proportional to
by tharne 7y ago
Any time you make money easily available for a certain good, whether through debt or direct subsidy, the cost of that good is going to increase proportional to the amount of money made available. This is what happened in the housing market and with college tuition.
I'd be willing to bet that if you outlawed student loans (assuming that was possible), you'd see colleges finding all sorts of ways to cut costs without negatively impacting the students.
- JadeNB 7y ago> I'd be willing to bet that if you outlawed student loans (assuming that was possible), you'd see colleges finding all sorts of ways to cut costs without negatively impacting the students. Big optimist you. They'd find all sorts of ways to cut costs without negatively impacting the enrollment, which is the statistic colleges care about (at least indirectly, to the extent that it correlates with tuition).
- MattGaiser 7y agoYou would probably end up with a two tiered system of online MOOCs for most and the normal experience for the elite.
- physicles 7y agoYeah, this was Scott Galloway’s take in an early Prof G podcast.