Our government is constantly attacking the affordability of various services in our economy by making loans available. This of course has no impact on affordability but does manage to create another set of problems that pop up and later have to be addressed. Think of the housing crisis, where for years the government tried to make homes more "affordable" by interfering with lending standards based on race and socioeconomic factors etc. What was the end result? A massive financial crisis was brought on by a collapse in housing prices. The student debt problem has developed along similar lines. Join me today as we take a look at this policy and point out some of the most egregious issues with pursuing this policy.
