Pearson Education, in collaboration with the world's leading newspaper, The New York Times, is pleased to offer educators and students a carefully edited collection of recent New York Times articles for Economics.

Article:

"Fixing the Student Loan Mess"

Questions:

1. Is there really a market for student loans? How would you defend this statement to a classmate? What conditions are needed to make a market?

2. What has been the biggest reason for the increase in demand for student loans?

3. If Congress moves to limit the role of universities as "middlemen", one way to do that might be to impose a type of price ceiling. This would allow lenders to charge rates no higher than a specific amount, but the rates could be lower if they wished. Who would win and who would lose in such a situation?