Jordan Weissmann’s piece today, discussing grad student loan debt today, is a bit of a logical pretzel. The piece is set up as a complaint about the fiscal damage grad students are doing to the budget, with a headline reading “The Newest Scourge of the Federal Budget: Graduate Students.” But as Weissmann points out, grad students are a large money maker for the federal government. That’s because the federal government draws huge interest payments off of grad students, as they do off of all students who take advantage of student loans. Weissmann says that “Graduate degree holders are relatively affluent, meaning there isn’t a great argument for heavily subsidizing their educations.” As Mike Konczal has pointed out (I can’t find where right now), if the government is making money off of a financial program, that’s the precise opposite of a subsidy. Would Weissmann say that payday lenders are subsidizing poor people who take out predatory loans to pay for food or the rent?