College loans in the US should work to the benefit of students
A student loan crisis indicates a problem with higher education
Amid the US debate over student loans—President Joe Biden’s administration tried and failed to forgive some of the debt, which starts accruing interest this month after a three-year pause—a crucial question has often been overlooked: Who benefits the most from student loans? It’s not necessarily students. The main beneficiaries are colleges and other accredited post-secondary educational institutions, which receive the loans as transfers from the federal government via student borrowers. There are few strings attached. Colleges do not pay the loans back, nor do they pay interest. Students do that.