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The stupidity of student debt

On 2 July 2014 Reuters’ correspondent Edward Hadas wrote: ‘The fast increase in loans to pay for higher education is a trend that is moving in the wrong direction. The idea that borrowing should play an important role in financing higher education, now standard thinking in the United States and the United Kingdom, is financially dangerous and economically wrongheaded. … The prejudice against state payment was socially acceptable when people were poorer and fewer of them went to college. Now though, higher education has become a public good. No amount of debt-think can take away the public’s responsibility for paying for it.’

Visiting US Nobel Prize winning economist Joseph Stiglitz also says the US higher education system is a bad education funding model to follow.

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