This flap over the Reagan Administration's proposal to cut student loan programs is interesting; however the finger of criticism is pointing in the wrong direction.
Let's talk about the thousands of educated college graduates who did not feel any obligation to repay the money they borrowed. When I went to college, I worked part time in a savings and loan that made government-guaranteed student loans. Fully two-thirds of the loans made were never repaid. After our efforts to locate the missing graduates failed, the loans were turned back to the government for repayment to the institution.
I'm not talking recent history either. I graduated from college nearly 15 years ago. It is sad the student loan system was so abused that it is no longer profitable to continue, but it wasn't the government's fault. For some reason, college students did not take the obligation to repay the money seriously and now today's students are left out in the cold.