In the two decades following 1990, subsidized federal loans per full-time student more than tripled. Economic analysis indicates that this expansion in subsidies
A) reduced the cost of a college education by the amount of the subsidies.
B) increased the cost of a college education by the amount of the subsidies.
C) reduced the cost of a college education of the students receiving the subsidies, but this gain was partially offset by increases in the cost of education resulting from the subsidies.
D) reduced the cost of a college education for students who did not accept the subsidies, but the net cost of education of those receiving the subsidies rose.

Question

Quizplus · Accepted Answer

The expansion in subsidies likely reduced the cost for students receiving them, but the increased demand for education due to subsidies can lead to higher overall costs, partially offsetting the benefit.

In the Two Decades Following 1990, Subsidized Federal Loans Per