Student loan debt was accelerated by the Democrats' Health Care and Education Reconciliation Act, which was introduced two weeks after President Obama took office. The education portion of the legislation kicked private lenders out of the student loan business so social-engineering Democrats at Sallie Mae could provide unlimited student loans, à la Fannie Mae's unlimited mortgage loans. Private lenders merely service the loans, while Sallie Mae designs the loan criteria and purchases the loans.
Previously, private banks owned the loans and limited them to what they felt the student could repay. With banks out of the way, there is no cap on tuitions, employee and professorial pay, or retirement pensions. Under this setup, tuitions grow quickly, and student debt typically exceeds the down payment for their first home. It may not matter, since such crushing debt is preventing many of them from buying a home.--
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