Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Investing

Should the Federal Government Subsidize Student Loans?

by February 28, 2024
February 28, 2024
Should the Federal Government Subsidize Student Loans?

Jeffrey Miron

Recent debates over student loan cancellation ignore a fundamental question: should the federal government be subsidizing such loans in the first place?

The standard argument for this intervention is that, otherwise, some for whom higher ed is productive will be unable to finance such “investments” due to imperfections in private credit markets. That claim is plausible, but subsidizing such loans has negative effects as well.

Subsidizing loans can encourage excess, or the wrong kinds, of higher ed acquisition by those for whom it is not productive. This possibility is consistent with claims from some indebted students that they cannot find jobs that make use of their degrees. This is plausible, in part, because nothing ensures that loans are for training or degrees that enhance productivity.

The impact of credit market imperfections is also easily overstated. Many colleges and universities, as well as private foundations and for‐​profit companies, offer scholarships, fellowships, grants, and apprenticeships to those with limited funds.

Even if the market undersupplies education loans, moreover, the federal government should play no role, instead leaving any intervention to states. Federal subsidy implies federal definition and control of higher education, which opens the door to thought control and political manipulation (e.g., via debt cancellation).

Rather than forgiving federal student debt, therefore, the right policy is to phase out such programs going forward.

This article appeared on Substack on February 28, 2024.

0
FacebookTwitterGoogle +Pinterest
previous post
Secrets of Success: Samantha Sloan, Founder and Director, 123 People Development
next post
New Dow Theory CONFIRMS BULL Phase!

You may also like

Is the Bank Secrecy Act Effective at Stopping...

June 2, 2023

The History of the Future: Build, Baby, Build...

May 6, 2024

Canada Took the Leap on Legal Weed—Five Years...

April 23, 2025

Biden, Trump Aren’t Getting Unequal Treatment in Document...

February 15, 2024

Bank Secrecy Act and Capital Gains Targeted for...

June 30, 2025

Tennessee Auctioneers Make a Bid for Free Speech

October 18, 2024

A New Podcast with Peter Van Doren

May 3, 2023

Americans Don’t Want Another War in the Middle...

June 20, 2025

Financial Regulators’ Open-Source Crackdown Sets Bad Precedent for...

September 1, 2023

Federal Bureaucrats Are Wrong About West Virginia Higher...

February 20, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • CDC Director Susan Monarez refuses to be fired as other officials call it quits

      August 28, 2025
    • Bill Gates met with Trump to talk ‘importance of US global health programs and health research’: spox

      August 28, 2025
    • Trump asks SCOTUS to uphold freeze on billions in USAID payments

      August 27, 2025
    • Three Years of Sounding the Debt Alarm at Cato and on the Debt Dispatch

      August 27, 2025
    • Trump Administration Rightly Attacks EU Tech Regulations but Tariffs and Censorship at Home Harm Americans 

      August 27, 2025
    • White House demands all Gaza hostages return home ‘this week’ amid stalled talks

      August 27, 2025

    Categories

    • Business (8,897)
    • Investing (2,246)
    • Politics (16,503)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved