I’m tempted to simply say we ought to end the subsidies altogether, but I don’t know what the counterfactual is. When my parents were in college, it was possible to work your way through a good four year school; these days, that’s difficult to impossible. Have loans really increased access? Or have they simply made it more expensive? Is the marginal supply those loans created–like the for-profit diploma mills–actually adding value, or merely allowing naive students to beggar themselves for a worthless degree? I’m fairly comfortable diagnosing the problem. But I’m less sure of what the solution should be.
The law of unintended consequences in play here.