That's what small government, anti-welfare political groups say about student loans (and it's popular on places like HN), but it doesn't match basic microeconom

That's what small government, anti-welfare political groups say about student loans (and it's popular on places like HN), but it doesn't match basic microeconomics. If demand goes up and then prices follow, then the market attracts supply until prices drop to essentially the least profit that suppliers can sustain. In the end, you have more demand - including students who couldn't otherwise afford college - and more supply. Of course, colleges will anticipate that and increase supply before prices peak. > it's hard to actually increase the supply Why would it be hard to increase supply of homes or college educations? > you can't get a honest picture of economic concerns if you think from the perspective of the finance industry. Yes, agreed.