Here is the back story.
The student loan program has large component of fraud where unqualified students take out tens of thousands of student loans to go finger nail polishing school and other trade schools or private diploma mills. The students do little and often don't attend school at all and just use the loans as spending money.
In some cases the situation is pure fraud and the schools simply split the tuition with the students and take the money and run. In the real world no one would ever loan on these types of educational activities but standards have been lowered and affirmative action type incentivize granting loans to unqualified and fraudulent borrowers.
It's the Student Loan equivalent of the Sub Prime Mortgage lending that killed our housing market.
These scams are especially prevalent with various communities and demographics where Obama has strong constituencies
The rub comes when it's time to pay the money back. The recipients soon learn that the banks are serious about repayment and student loan debt cannot be discharged in bankruptcy .
People who ran up a huge student loan bill enrolling in Latisha's Academy of Urban Basket Weaving and used the $30000 for clubbing and living expenses now find they are and unemployable and saddled with a debt load that their EBT cards can't service and that they can't shake the debt via bankruptcy.
Now Obama wants to bail them out.
The problem is also one of massive subsidies to middle and upper-middle-class students and their families to fund waste and frivolity for years and years.
It’s not just Worker Joe taking some classes from Phoenix.