Why Student Debt Might be About to Rise
One huge misconception about student debt is that it is mostly a function tuition fees, or the cost of living. But that’s only partly true. In fact, borrowing is a function of assessed need (that is, assessed costs minus assessed resources). And, in turn, assessed need is subject to maximums. Governments—at least, governments outside Quebec—don’t simply hand out whatever amount students need. Instead, they put maximums on total aid, which for reasons that defy easy explanation are expressed in weekly