Inside Higher Ed

Borrowing Increases Most Among Wealthy Students

January 09, 2019

A newly released analysis of federal data found that student debt levels increased most among affluent students in the four years before 2016. One reason, according to the report from the Manhattan Institute, is that wealthy students tend to choose pricey colleges. And these students and their families "are usually better placed to take advantage of the arbitrage opportunity offered by federal student loans -- i.e., borrowing at subsidized interest rates and investing any cash that this frees up in a higher-return investment, such as retirement savings."

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