In your words, explain why student loans have become a moral hazard problem for the USA. 2)
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Question:
In your words, explain why student loans have become a moral hazard problem for the USA.
2) Has the student loan also created a negative externality? If yes, explain. If no, provide your arguments.
3) If student loans are so hotly debated, why were they offered in the first place by the government? Explain the possible economic rationale for the government to provide student loans.
Expert Answer:
Student loans have become a moral hazard problem in the USA primarily because they incentivize students to take on significant debt without fully cons... View the full answer
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