As I understand it, the loans are through a bank, but guaranteed by the Federal gov’t. Personally, I think there should be some blowback to the banks for making loans to Donald Duck University (or whatever) in the first place. Why should we taxpayers subsidize a student who wants to get a Ph.D. in Saving the Loblolly Pine Tree? I’d like to see the banks eat 90% of the loan’s cost and the rest fall on us, but only for those students who have declared bankruptcy.
“Personally, I think there should be some blowback to the banks for making loans to Donald Duck University (or whatever) in the first place.”
I agree with that somewhat. The schools were a scam and the banks were a party to it...