[ExSES]

The direct lending program could not handle student loan volumes. The private lending market is much more efficient.

While true..., there is (and always has been) a major problem in student loan programs! Far too many "Diploma Mill" operations continue to prey on the ignorant (and ultimately the taxpayers when students default!!!)

[businessprofessor]

I do not doubt that unqualified educational institutions exist. These institutions would exist in a public or private student loan industry. The dims are trying to reduce the size of the private student loan industry and make the remaining players increase political donations to the Dims.