The real danger during a recession is a hike in tuition, not a cut in student loans. In past recessions, states have cut funding for colleges and increased tuition. The Cato Institute says a better policy would be for states to maintain the subsidies to colleges and increase their deficits.
If government cuts the subsidy to colleges, why will tuition rise and the number of students enrolled decrease? Why is it a better policy for government to maintain the subsidy to colleges?