Student Loans & Bankruptcies (was Re: creative financing)

[Yoshie Furuhashi]

>when i said deservingness, i did not mean desert. i illustrated what 
>i meant with an example: the student who flips the bird at the rest 
>of the community and pisses all over his or her free education.

When ex-students (some of whom couldn't, for various reasons, 
complete their education & thus didn't even get diplomas out of their 
debts) default, are they stiffing "the rest of the community" or 
creditors -- private lenders -- who insist upon government subsidies? 
Why should the government act as the collection agency of the last 
resort on behalf of private lenders?  Tax dollars would be better 
spent if they were used for grants for students & funding for 
universities rather than student loans.

Yoshie