<p>The problem is we’ve been so conditioned to loans as to think that system will last forever. Obviously it won’t, and is in deep trouble right now. And we have been conditioned to think that it is the only way to solve the student funding issue. </p>
<p>Rather than lending some frosh 10,000, be that from government or bank, perhaps supporting students directly would be the solution. Pay the tuition via grants, and hold academia accountable for keeping the costs reasonable. If there has to be some recompense, have it done via service whilst in school. Even such as tutoring school kids would be well worth the investment. </p>
<p>And it could be done, if the system was gradually reformed. Or quickly since it seems to be close to collapsing anyway. As noted before just the NNC over billing would have paid the tuition of every two year student in the state of Colorado. </p>
<p>In many terms SL’s could be considered a failed system. Students do not know what they are getting into, and there is a great deal of misinformation spread by the loan companies. The big players have defrauded the government, students, and families for millions with no meaningful penalties applied. The CEO’s of the major players involve themselves in activities which if done elsewhere would result in regulatory censure or prosecution. So its not like we can claim our semi-privatized system has been all that efficient or effective. So it’s a matter of how we have chosen to waste our tax money.</p>