1.  Define the following words as used in the article:
subsidies (para. 6)
defaults/in default (para. 12-13)
delinquent (para. 13)
garnishee (para. 13)

2.  What was the purpose of the federal student loan program when it began in 1965?

3.  a) How large is the nation's student loan debt today?  (The total amount of money in outstanding student loans.)
b)  How much does the average student owe upon graduation?
c)  How does the huge increase in debt affect taxpayers?

4.  Why are government student loans and subsidies not cost-effective for taxpayers, according to Moody's chief economist Mark Zandi?

5.  a) What percent of student loan repayments are at least 30 days past due?
b)  How many months can a borrower go without making a payment on his student loan before he is in default?  
c)  If a borrower is delinquent in making payments on a car, ehow.com reports "Generally, a lender has the legal right to repossess your vehicle when you are only one day behind. However, according to Credit Options, lenders will generally wait till you are past due at least three payments [three months]."
Do you think the amount of time given to a person before he goes into default on a student loan is reasonable?  Explain your answer.

6.  a) What do you take away from this article?
b)  What do you think you as a student should do before getting a student loan?

7.  College students protested this week in California over an increase in state college tuition, shouting "Education should be free."  Who should pay for your college education:  you, your parents, or all of us--the taxpayers? (That is, who would pay for it if "the government" gave you a free education.)  Explain your answer.

8.  A four-year degree at many of the bigger name or private universities can cost well over $150,000 - more than the cost of a house in some states/towns.  When is it economically prudent for a student to pay this much for a college education?  Explain your answer.