Interesting take on Student loans

Student Loans: The good the bad and the Ugly ? The visible hand in economics

Agnitio from TVHE takes a good hard look at National’s student loan policy. A very interesting take.
[quote]The big question then is, will this actually make things worse? What it really comes down to is how strongly students have responded to the existing bad incentives to borrow. I know I borrowed the maximum I could as most economics students would so I couldn?t borrow anymore. If the majority of students think like I do then they can?t borrow anymore so this policy will be better than the status quo as debt will be paid off quicker. If students didn?t respond to the introduction of interest free student loans as strongly as I did, then it is possible that the benefit of increased repayment will be offset by the increased incentive to borrow. Then again, people who didn?t respond strongly to interest free loans being introduced probably won?t respond to this either?.. (I?ve always found it interesting that arts and social sciences students claim not to be motivated by by money yet they are the ones who spend so much time protesting University fees, go figure).[/quote]

Hmmm….I’ll think oon that.

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