Federal Student Loan Programs

Renewal of the Federal student loan program is in the press these days as debate takes place over what rates are appropriate and what the programs should look like in the future.

  • Should the Federal government be in the student loan business?
  • Given the concern about graduating students’ debt load (and, even more so, about the debt load of students who fail to graduate), is a Federal subsidy to encourage more borrowing appropriate?
  • Do other ways to finance education (such as a “levy” on future income) better align costs and benefits?

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