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<p>Looks like the described schemes / companies involve investing into a lending pool which lends to individual students, not lending to individual students directly, which changes the risk profile from an investor viewpoint.</p>
<p>However, it seems that most posters here do not like the idea of large amounts of student loans, so they may not want to invest in such a scheme anyway (even if it, as an investment, otherwise met their investment goals), unless the loan amount to any individual student were limited to what they consider reasonable. Many consider the subsidized Stafford loan amount to the be limit of reasonable loans for undergraduate, so they may not want to invest in a scheme offering additional loans to undergraduates; professional degrees leading to strong job prospects (e.g. MD, MBA at highly recruited schools) may be a different story.</p>