Higher education subsidies in the form of the federal government's student loan program
A)induce more people to attend colleges and universities.
B)keep interest rates low on student loans.
C)cause lenders to take on more risk.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The student loan program provides financial aid to students who would otherwise have difficulty paying for college, thereby inducing more people to attend colleges and universities. The federal government's involvement in the market also helps to keep interest rates low on student loans. However, because the government guarantees loans and encourages lending, it can cause lenders to take on more risk. Therefore, all of the options are correct.

Higher Education Subsidies in the Form of the Federal Government's