More is less

Student debt in America now totals $1.2 trillion, up more than threefold over the past decade. On August 10th Hillary Clinton announced a $350 billion plan to reduce this sum. It would increase federal subsidies granted to state-school students, and help existing borrowers refinance their liabilities. New loan originations have decreased every year since 2010, and default rates have stabilised.

Surprisingly, the less students borrow, the more likely they are to struggle with repayments—presumably because debtors with six-figure obligations tend to have postgraduate degrees and steady jobs, whereas those with more modest loans tend to be college dropouts. Non-payment rates also vary by institution. Students at for-profit schools fare the worst: nearly 20% default within three years of leaving college. If Mrs Clinton succeeds in cutting state-school tuition, the for-profit education industry could take a big hit.