Anyone who received a loan under lenient conditions and paid it off benefitted indirectly by being allowed to receive the loan in the first place. Private lende

Anyone who received a loan under lenient conditions and paid it off benefitted indirectly by being allowed to receive the loan in the first place. Private lenders are selective and would only lend to the best students. So all these people on the margin with say a 85% chance of completing university would have to be denied, because there is no way they could pay the interest to make this lending profitable for the bank. The idea that the loans would be a profit center for the US was a pipe dream to begin with.