State low-interest college loans programs for middle-class families have emerged in response to restrictions on federally subsidized Stafford Loans. The key difference between federal and state programs is that most state programs require student borrowers and cosigners to prove good credit risks, reducing loan default and making the programs…

Over the last century, Americans have formed a social contract with higher education through the development of and changes to student financial aid programs. These federal, state, and institutional programs are the manifestation of the value we place on who should and who does pay the costs of higher education. Grants versus loans and low-income…