Also go look up the price of college tuition prior to gov't intervention. The cost of college was very affordable prior to the federal gov't guaranteeing student loans. By having the loans guaranteed by the gov't, colleges could hike up tuition prices to whatever they wanted and if the student couldn't pay back the debt the gov't stepped in and paid the college because the loan was guaranteed by the gov't. In addition, by hiking up the tuition universities increased the amount of students that would require loans. Since the loans are guaranteed by the gov't this directly leads to more money in the universities pocket. Gov't intervention created the problem of bloated tuition costs.