Originally Posted by Bostonian
Artificially low mortgage interest rates contributed to a housing bubble. Raising student loan interest rates to a level reflecting their credit risk would exert downward pressure on college costs, since many people would not be able to borrow as much.

Perhaps, but I think the real problem there was that credit was too easy to get. This situation led to too many people buying a house, and the effects on pricing were predictable.

But of course, that's not a problem with a college education. It's not like this society encourages everyone to go to college and hands out loans like they were lollipops.

Oh, wait....