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Subsidized loans drive college tuition, student debt to record levels

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A proposal to restore the lower interest rate of 3.4 percent on student loans from its recently increased 6.8 percent for another year failed in the Senate on Wednesday. The common response to this vote is that it is a tragedy. It isn't. First, even the 6.8 percent rate, students are still benefiting from a significant subsidy; the rate on similar loans that students obtain in the private...

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