The explosive growth in student loans.

The explosive growth in student loans.o Describe the economic issue.o Why is it important?o Which principles of economics apply? Choose from each of the areas: decision making, interaction, and how the economy works.o How do the forces of supply impact the issue?o How do the forces of demand impact the issue?o How does elasticity apply to the issue? If appropriate, include a calculation for elasticity.o Use graphical representations of economic concepts like supply and demand curves, equilibrium, elasticity, and cost curves to support your conclusion.o Which theories of economics apply (for example, theory of consumer choice, theory of the firm)?o How does the issue relate to the economic topics Discuss (check for the help you need)ed in the text or class? For example, do any of these concepts apply to the issue: efficiency of markets, costs of taxation, benefits of international trade, government interventions, competitive markets, features of labor markets, macroeconomics data, monetary system, and economic fluctuations?o What are your conclusions or suggestions to improve the situation? The explosive growth in student loans. Since even before the federal government took over all student loans, the number of loans was increasing rapidly. Why? How can economics explain this phenomenon? Would the student loan market be better off if it were privatized again? Is there a correlation between the interest rates charged and the number of loans increasing?!

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