Re:Cédric Villani: mathematician challenging to be Paris mayor
by dodobirdlord on Thursday October 31, 2019 @01:31AM
(#21406009)
Federal student loan guarantees and subsidies complicate the economics. Lenders are prepared to provide larger and riskier loans than the marker would otherwise support. Universities can handle only a limited number of students, so they have no incentive to lower prices until it would result in a marginal slot going unfilled.
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Re:Cédric Villani: mathematician challenging to be Paris mayor
by dragonwriter on Thursday October 31, 2019 @01:46AM
(#21406056)
> Lenders are prepared to provide larger and riskier loans than the marker would otherwise support.
The only lender that has benefitted from federal guarantees/subsidies for a number of years is...the US Department of Education. Whose lending is directed by the same laws that provide the guarantees and subsidies, and so are not incentivized by them.