[pclowes]

I am not saying it is simple. And yes technically the lenders are separate but the incentives align them so the effect is the same as if they weren’t.

As examples:

- loans are given equally for an English major and an electrical engineer. No market force at play here.

- Interest rates are the same as well even though the risk of default is not the same across majors

- Your interest rate remains the same for subsequent years even if you get a 2.0 your first year.

- College tuition rises in lockstep with additional Federal grants and loan programs

Also, I am not saying there isn’t bad or unscrupulous behavior by lenders but the default case is poor money management and a faulty understanding of interest. I think this fault lies with the student, but also the government allowing its lenders and institutions to prey upon their youth as well as allowing high schools to graduate students without this basic understanding.