It’s absurd to suggest that the solution to overpriced government student loans is to eliminate profit from the program. Loans are supposed to be the current use of one’s future capital. Interest rates signal how efficient this advance is. Given that government cannot determine the efficiency of investment in education, it has no business setting prices by fiat. Still, Warren’s program is not merely one among a million other arbitrary suggestions for government set prices.
In her words, “Our work will not be done until we have eliminated all of the profits from the government-run student loan program.”
One wonders if she has any concept of what prices do. Warren doesn’t just want government to continue putting students in massive debt; she wants it to give students even more reason to malinvest their savings and throw themselves at the mercy of the state’s financial caprice.
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