A student loan is not a subsidy you have to pay it back
My kids and husband took out loans for school and paid them back. I think it would be helpful if the Government was not making the loans but let private banks make them again.
I think the whole education system has changed since I was in school—it is even changing in the time that I put 3 thru for undergraduate degrees. I think in essence, the subsidies are really targeted to the university. Just like government involvement in medicare and medicaid has raised medical costs, government loans have raised educational costs and subsidize universities. So, yes,student loans are not a subsidy to the student as they have to pay it back. But many schools have spent millions in capital improvements and have huge endowments as well. They can only do that if they have a good cash flow which government provides.
For example, about 6 years ago, I was in the brand new student pool at UIC in Chicago; they have a water park. A water park?! With fountains, current stream paths for tubing and slides, etc. Oh, it was very nice, and a few students were taking a break on a Sunday afternoon, but is an extravagance that universities would not be able to afford if students and families had to pay more out of pocket—i.e. loans were kept smaller. I would think they would not build a facility like that in today’s economy. Education rises proportionately to the loan amounts...