From my position in the legal system, I’d suggest that any analysis of this “problem” needs be two-pronged. There is the issues concerning the loans, i.e., were they good, is there a chance of repayment, are the rates appropriate, etc.?
But the second prong, absolutely has to examine the so-called “students.” These “students” often times have no intention of using the loans for school. They are turned down for a car or home loan and use the low rate and readily available “student loan” to buy the car or get a down payment for a mortgage that they otherwise couldn’t qualify for. Then they default and Obama is oh so sympathetic. The other common use of “student” loans is to post bond or hire an attorney in a criminal matter. I see it every day.
I would guess that fully have of the loss on these loans are fraudulent or near fraudulent. At best, the monies were not used for the intended purposes.
I am wholly unsympathetic.
Oldplayer
It was VERY difficult for us to pay back the Student Defenese Loans. WHY teach the citizens of America that they can make any mistake and the TAXPAYERS will be there to bail them out! NO...they need to pay. Life is difficult at times, and people DO NEED to recognize that every choice does bear a consequence. Make poor life choices, and bear the results. PAY THE LOANS, it isn’t the American Taxpayers duty to pay for the foolish ambitions of people who never took a grave concern to be RESPONSIBLE.