Re:Judge rules that student loan debt is dischargeable in ba...
by BurningFrog on Sunday January 12, 2020 @08:47PM
(#22031197)
> I think the original intent was to incentivize more lending, and thus more access to higher education
If so, that is a classic intellectual mistake that comes from not understanding any Economics.
If you increase demand by pumping out extra education dollars to students, and the supply doesn't increase accordingly, all you've done is raise prices and give the suppliers a huge windfall profit.
Why the supply of college spots doesn't respond to a demand increase, like most goods and services do, is an interesting question!
If so, that is a classic intellectual mistake that comes from not understanding any Economics.
If you increase demand by pumping out extra education dollars to students, and the supply doesn't increase accordingly, all you've done is raise prices and give the suppliers a huge windfall profit.
Why the supply of college spots doesn't respond to a demand increase, like most goods and services do, is an interesting question!