[FrustratedMonky]

Because it is not 'free'. It puts students in debt.

You are boosting your income by exploiting students through usury.

Lets say there is no government, then where was the 'competitive' pressure? How does government loans take away competition? Did they close schools to eliminate the competition?

[lr4444lr]

Good faith reading is that he means its risk free to the school, because they get paid up front even if the student doesn't graduate, much less earn enough to pay back his loan.