There are a few states that offer free/near free education at the community college level (Tenn, Oregon), a few that have very low tuition or programs that pay (Florida, GA, Wyoming). Is there any evidence that fewer student loans are taken in those states, or that default rates are lower?
No.
I used to think that student loan limits should be higher but now I don’t think so. If my daughter could have qualified for more, she would have taken more. She’ll have trouble paying back what she did take, and she didn’t take the max. She did do study abroad, but didn’t get to travel around Europe every weekend like others in her program did. She had a wonderful time in London, one side trip to Paris, as that’s what she could afford. If the school would have lent her another $5000, she would have taken it and spent it. All of it.