Loans Work
If you spend any time looking at student aid research, you’ll be struck by how much empirical evidence there is on the effectiveness of grants (or, more broadly, “changes in net tuition”), and how little there is in terms of the effectiveness of loans. Thus, one might be tempted to think that this means grants are effective and loans are not, but it’s a bit more complicated than that. There are a couple of reasons why it has been difficult