Read the following article:

http://www.thefiscaltimes.com/Articles/2013/12/05/Why-Easy-Student-Loans-Are-Moral-Hazard
After a critical review of the article, answer the following questions:
1) In your words, explain why student loans have become a moral hazard problem for USA?
2) Has the student loan also created negative externality? If yes, explain. If no, provide your arguments.
3) If student loans are so hotly debated, why were they offered in the first place by the government? Explain the possible economic rationale for the government to provide student loans.

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