Is straight down rates an informed approach to a great fairer, better education loan program? Regarding the rhetoric read inside Congress and on the fresh promotion trail, the answer seems to be “sure.” However, one another empirical facts and monetary concept show that lowering attract prices was an outspoken, ineffective, and you can expensive unit to own expanding education and you can cutting loan defaults. There are much better a way to go this type of crucial wants.
Education is a financial investment: it will make can cost you in the present however, brings benefits on future. Whenever people have university, expenditures is tuition, college provides, and shed income. Benefits once college or university were increased income, increased wellness, and you will lengthened existence. Continue reading
