What about those sky high sticker prices? Are they that high because schools are confident the government will foot the bill?
Thanks to Nancy Mae, yes. They will get their loans unless their students die. And mortality rates aren't a huge worry for what are mostly fledgling 22 year olds trying to make a career for themselves. For the US you may as well add "school loans" onto "death and taxes".
You seem to imply inelestic demand (never mind that this is in fact starting to be more elestic now, so there was in fact a limit), but forget the government allowed this. Giving any other 18YO a loan like this would be suicide without an exact plan.
Thanks to Nancy Mae, yes. They will get their loans unless their students die. And mortality rates aren't a huge worry for what are mostly fledgling 22 year olds trying to make a career for themselves. For the US you may as well add "school loans" onto "death and taxes".
You seem to imply inelestic demand (never mind that this is in fact starting to be more elestic now, so there was in fact a limit), but forget the government allowed this. Giving any other 18YO a loan like this would be suicide without an exact plan.