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<p>Actually, you are missing the point. There will not be any loans available if they are dischargeable thru bk court. No bank will make a loan without a government guarantee. Thus, the default rate will go to near zero. </p>
<p>The current banking crisis was a direct result of government involvement, essentially a federal guarantee of Freddie and Fannie, pushed by Congress. Without that guarantee, fewer risky loans would have been made, and fewer would have been in default.</p>
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<p>Logic has nothing to do with it. A few prominent economists have studied the issue and it is they who have concluded that federal money for some increases tuition for all.</p>
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<p>Concur but only in part. The problem – as it exists for EVERY government program – is the unintended consequences of that program. Indeed, you even recognize the unintended consequence bcos you then suggest that law schools be restricted. My point is that without loans, there would be fewer law students and fewer schools and therefore nothing to restrict.</p>