Originally Posted by Dude
There are plenty of private organizations all too happy to provide college debt, thanks to the recent changes in bankruptcy laws that render the debt inescapable. They just do so at higher rates of return than the government is currently charging. The market responds rationally to the cheaper rate.

First rule of debt.

Debt that can't be paid back won't be paid back.

You're basically talking about SLABS, which I was interested in (from a bubble perspective) a few years ago, but which died with the bust.

http://blogs.reuters.com/great-debate/2013/03/07/student-loan-bubble-babble/