Higher education subsidies in the form of the federal government's student loan program have the potential to
A) reduce the number of people that attend college.
B) reduce the number of universities and colleges in the future.
C) create a credit bubble and debt crisis.
D) reduce the default risk on student loans.

Question

Quizplus · Accepted Answer

The federal government's student loan program can lead to a credit bubble and debt crisis if too many loans are given out without regard to the borrowers' ability to repay, leading to high levels of student debt.

Higher Education Subsidies in the Form of the Federal Government's