If all university students had to pay the full cost of their education,

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If all university students had to pay the full cost of their education, they would face a significant financial burden. As a result, many students may choose not to pursue higher education or may choose less education than what is socially optimal. This would have negative effects on human capital development and economic growth. Horizontal equity refers to treating individuals in similar situations similarly, and it is not necessarily true that university students come from the lowest-income families. Vertical equity refers to treating individuals with different abilities or circumstances differently, and it is possible that internalizing the externalities of their education could enhance vertical equity. However, the economic efficiency of the higher education system may not necessarily be greatly enhanced, as it could result in a reduction in the number of students pursuing higher education. The elimination of federal debt is also unlikely to result from this policy change.

If All University Students Had to Pay the Full Cost