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There's some misunderstanding - the student loans in Finland and a few other places are only for student living expenses (food/rent/beer/whatever) during the studies so that they don't have to work to support themselves during studies; they do not affect the budget of universities in any way.

If the university finances are decoupled from student ability to pay, then loan availability doesn't distort the education institutions, but instead mainly affects the lifestyle of students and their families.

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