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If I understand the US college debt trap correctly, the universities can raise prices however they want as long as the government can guarantee that banks loan
by t0suj4 4y ago
If I understand the US college debt trap correctly, the universities can raise prices however they want as long as the government can guarantee that banks loan the money to students the universities can pocket.
So universities have incentives to convince the students to take on as much debt as possible.
- IG_Semmelweiss 4y agoYou are correct For the sake of thoughtful discussion, i chose to omit the topic of debt trap. Your comment makes it painfully obvious that any attempt to tackle incentives discussion must by definition include all incetives , such as (unlimited) backstop of debt.