Final answer:
It is true that borrowing is often necessary for students to fund their education when current income is insufficient. This creates demand in financial markets, predicated on the expectation of future repayment post-graduation. Borrowing for education is a form of investment in future earning potential.
Step-by-step explanation:
The question concerning whether some level of borrowing is necessary for students to complete their degree in a timely manner can be answered as true. Many college students find themselves in situations where their current income is insufficient to cover college expenses. This necessity prompts them to borrow money and create a demand from financial markets. Post-graduation, these students expect to enter the workforce and begin repaying their loans.
Borrowing for education is akin to investments like purchasing homes or cars, or business investments in long-term projects. The confidence in future repayment ability also influences the quantity demanded of financial capital in the market. Therefore, student borrowing is often a required step to achieve higher education when immediate funds are not available.