Private lenders used to do this. The Federal interest payments gave a stream of income to the lender. But I thought in decades past someone used to assess the

Private lenders used to do this. The Federal interest payments gave a stream of income to the lender. But I thought in decades past someone used to assess the risk of someone not repaying, and limit the amount. Or was it always a small amount no matter what? I remember not being able to afford even the state schools, even with the loans and meager scholarships. This is in the early 1990s.