Study: Private student loans parallel subprime

[Igel]

11. Let's be consistent. And look at the problem itself.

There are a lot of schools with high default rates. Some of them are not-for-profit.

That's pretty much any school with the same demographics as the student bodies of the for-profit schools with a high default rate.

You could rule all those schools out, but for-profit schools are not the problem in this case.

The problem is that the schools have a high default rate; it's that some schools have an abnormally high number of students that get loans that they can't repay. Tighten up the requirements for getting a loan and you'll find that the default rates will go down across the board, both at for-profit and not-for-profit institutions. And that those schools "with a high default rate" will suddenly have far fewer students that get government-backed student loans.

That, oddly, is the point of the OP.