[wayne_h]

This was caused by government unintended consequences....

Some doctors graduated from med school with $100ks in loans. So they immediately filed for bankruptcy and cleared the debt. After a few years of work they were back in the bucks and debt-free.

The loan industry had congress write some new laws (was it 2008 ish?). The package clamped down on debt-collectors calling at all hours. It also eliminated clearing college loans with BK.

The loan industry celebrated - nothing like sure bet! Indentured servitude - Yahoo! They started giving away loans like candy.

Then the schools noticed all the free-flowing money and joined the party.

[dragonwriter]

I don't see the unintended consequences: financial companies asked Congress to write a law for the express purpose of insulating those companies from risk and increasing their profits and the results were that (1) borrowers couldn't discharge debts in bankruptcy, making the financial services companies more money, and (2) increased profitability led to more loans, helping drive up tuition costs increasing the average loan amount and making the financial services companies even more money.

Doesn't seem to be unintended consequences at all.

[7Figures2Commas]

You do realize that ~85% of the student loan debt outstanding - which amounts to more than $800 million - belongs to the federal government, right?