This is How Government Backed Education Debt Works

It results in funds being given out to kids that would not otherwise be able to get such financing and,except for the big earners, will saddle many of them for decades.

The Class of 2015 is the  most indebted in history.

Students in the Class of 2015 are carrying an average of over $35K each in debt,for a total of over $68 billion. This comes as education is more expensive than ever. It's a crony education system that teaches mostly government approved education and, in return, the government backs the student loans that support the system. Without the government backing of the system, it would collapse and a new more student centered education system would emerge that would have some students going into apprentice type programs and other more intellectual students being exposed to a more broad-based view of the world from many different perspectives at a much cheaper price.