>It's not just a question of there being a huge pool of money, you can buy a car with loans and car prices haven't skyrocketed.
The obvious difference is that car loans are not Federally issued and defaults are possible. Hence creditors have to issue loans in a prudent manner or else they will incur a loss. Not everyone is able to acquire a car loan, and interest rates can be very high.
These incentives do not exist in the student loan market and thereby subsidizing demand. Students become price inelastic.
The obvious difference is that car loans are not Federally issued and defaults are possible. Hence creditors have to issue loans in a prudent manner or else they will incur a loss. Not everyone is able to acquire a car loan, and interest rates can be very high.
These incentives do not exist in the student loan market and thereby subsidizing demand. Students become price inelastic.