The institutions are the ones receiving the benefits of the subsidized loans; the students bear the long term costs of the 'student loans'. "Where the supply c

The institutions are the ones receiving the benefits of the subsidized loans; the students bear the long term costs of the 'student loans'. "Where the supply curve is more inelastic than the demand curve, producers bear more of the tax and receive more of the subsidy than consumers as the difference between the price producers receive and the initial market price is greater than the difference borne by consumers." [1] http://en.wikipedia.org/wiki/Effect_of_taxes_and_subsidies_on_price http://en.wikipedia.org/wiki/Effect_of_taxes_and_subsidies_o...