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The government should get out of the student loan business. If a private company wants to make a loan, and take the risk of default or bankruptcy, fine.

OK I admit "illegal" is too hot headed.

Don’t practically all university users have very low incomes?

Yes, but I'm talking about the way university financial aid works. It is based on the household income of the parents, given the expectation that parents will contribute significantly to the costs.

"Low income residents" in this context almost certainly means "low income families" or more succinctly, parents.

I don't know I would go as far as illegal but they should be discouraged at least.

The loans really create a perverse system of runaway prices.

> state schools should be heavily subsidized for low income residents.

I mean they mostly are - I'm annoyingly in the middle on this in that I see a lot students borrowing to go to schools they shouldn't when there are cheaper options available like state and community colleges. I don't feel a lot of sympathy for loan forgiveness when there are alternatives.

However, schools that accept loan money should underwrite the loans if it's such a sure thing, and they should be dismissable via bankruptcy.