Government-guaranteed loans are a fantastic way to force prices to spiral out of control. The way student loans were before income-based repayment, we'd have expected college cost to rise until it meets the lifetime expected benefit of college discounted to the present.
With income-based repayment, where your loan balance is forgiven after 20 years, there is no limit to how high it can go.
Government-subsidized mortages and mortgage interest deductions have a similarly terrible effect on housing, a basic good that government policy should try to make as cheap as possible. Instead, government policy is to make it as expensive as possible.
With income-based repayment, where your loan balance is forgiven after 20 years, there is no limit to how high it can go.
Government-subsidized mortages and mortgage interest deductions have a similarly terrible effect on housing, a basic good that government policy should try to make as cheap as possible. Instead, government policy is to make it as expensive as possible.