1. Describe the role played by federal guarantees of student loans to the for-profit sector business model.

2. If banks lend money to students as educational loans, and those loans are guaranteed by the federal government, hence removing all risk to the lender, do we really need banks in this equation? Why not simply borrow money directly from the federal government for student loans? Discuss.

3. Student loan debt is not extinguished by bankruptcy. What does this mean? What are the implications to the borrower?