Washington Monthly: The subprime student loan racket

Recruiters prey on the desperate with the promise they'll get well paid jobs if they borrow to take courses at their 'universities'. Students end up with a garbage education, no job and massive debts. All the elements of subprime mortgage lending are here: lobbyists, interested parties with posts in the Bush administration, the use of government backing to make up-front profits with no back-end losses, Sally Mae (Fannie and Freddie's cousin), shocking, hidden interest rates foisted on the needy, the false promise of wealth (in this case through a job) and recruiters (mortgage brokers) under carrot/stick pressures to sell non-existent classes. 'Accountable' publicly traded education companies operate Ponzi schemes - expand and worry about the consequences later.