Subsidy

Counterparties: The lessons of tuition inflation

Felix Salmon dismisses the effect of loan subsidies on rising tuition costs by pointing out that the loans get repaid with interest, so that means it is not a subsidy.  Besides being a very weak argument, whether or not it is labeled a subsidy is immaterial. It is credit which allows people to pay more. Without a cap, colleges wouldn't be able to charge as much, and hire so many useless administrators. The cost of college is out of control. Watching the online disruption is fun. Would love to find a way to get more involved....