How to rip off student loans

[rjmacs]

kj wrote:
But the people who choose these schools essentially bought a Yugo, and that's not my problem, or yours (unless you or I choose to personally help them out). But how can the government and the taxpayer afford to bail out everyone who makes a poor decision? kj.

Are you somehow under the impression that federal student loan programs are losing money and costing taxpayers? Because that's just not true. Profits from student loan repayments has generally been used to subsidize Pell grants and Perkins subsidized loans, which provide money for very economically disadvantaged students' tuition. Previously, these profits have also been used to pay private lenders to provide loans, but that was phased out beginning in 2007.

Rest assured, none of your tax dollars are going to pay for students who default on their federal student loans. The system can more than cover its losses with operating revenues. The phrase 'bail out' simply doesn't apply here.