When a talented student from a poor family is unable to receive a loan because she has no collateral,this _________ can be addressed by __________.

Question

Quizplus · Accepted Answer

The situation described is an example of credit market failure, where a promising student is unable to receive a loan due to lack of collateral, even though she has the potential to succeed academically and repay the loan. Government intervention, such as providing subsidies or guarantees for loans to students, could help address this issue and make education more accessible for low-income individuals. The other options, privatization of education or abolishing the federal Department of Education, do not directly address the issue of lack of access to loans for deserving students.

When a Talented Student from a Poor Family Is Unable