Monday, June 15, 2015

Our views on federal profits from student loans: a retrospective


Slate and Leiter's blog (both via Mike Simkovic) have returned lately to the profitability of federal loans to law (and other professional school) students.  Interested readers may note that L&E Prof had a three-part series on that issue: 1. A general theory ("the bake sale theory") of profitable government business; 2. distributional issues specific to student loans; 3. a possible argument for why it would be efficient to do redistribution through a student loan program.  Readers interested in the last question may also want to check out this working paper by Jake Brooks.

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