Availability Quote by Michael Hudson
“Just like a house is worth whatever a bank's going to lend against it, an education is worth whatever the bank is going to lend the student to pay the university. So the availability of government-guaranteed student loans has vastly inflated the cost of education, just like it's inflated the cost of housing.”
About This Quote
Source Article: “The Student Loan Crisis” in Economics of Debt, 2015
Student loans, like inflated housing loans, raise education costs, making higher learning a financial burden tied to borrowing capacity.
In simple terms: Student loans inflate education costs like housing loans.
Key Takeaway
Reform loan systems to reduce cost inflation.
Themes
education
finance
inflation
debt
policy
Mood
concerned
analytical
Type
policy
economic
When to use this quote
- college budgeting
- financial planning
- policy advocacy
- student counseling
Key Concepts
economics
public policy
Questions to Reflect On
- What alternatives to debt financing exist?
- How can students assess true education value?
A Different Perspective
Policy changes may be politically difficult to implement.
