Let us bring our discussions on student loans (SL) to the next level.  There are many sub-system entangled one-to-another that affect the student loans which all the American public has seen these days. If the System is broken, then one needs to know what are the reasons or what factors have caused the problems.  To avoid the unproductive discussions, let us approach this important scholarly work by using the real data with approaches that are academically sound, justifiable and verifiable by who ever that have the interest on one of the gigantic tasks to be solved in the modern history of the USA.  We will apply econometrics and multivariate statistics in these efforts.  To do that, let us bring what the possible relationship among the subsystems may look like Figure 1, as shown below.  Basically, there are four main elements–the US lawmakers, US regulator, the US higher ed institutions and the American public and students.  The first three are endogenous to the system, while the student (American public) sub-system is exogenous.  Therefore, the public sub-system is excluded in Figure 1.  So, none of the students has the ability to shape up the policy directly, but through the representative/lawmakers that they may have voted for, iff (if only if) these lawmakers truly represent them on such an important issue.

• The lawmakers who have the power to set the general policy has almost a full-control which direction for Uncle Sam to move to, for example NDEA. If things works as planned, this subsystem supposed to operate for the interests of the students or the public as their constituents.  Did they? may be not, read here.
• The legislator, based on the purpose why this country is established as stated in the Declaration of Independence, is also to work for the people of the country?  Did they?  May be not.  Read here for detail.
• Higher ed, especially at public universities and colleges are supposed to be managed for the interest of the tax payers.  Did they?  May be not.  Click here.

The overwhelmingly evidences show that none of these subsystems actually directed or managed for the benefit of the American public.  Therefore, the student loans are ballooning.  The real world evidences show that all the errors are non-random, but systematic or Bias E(β)≠β head. 

From the statistical theory, random errors, can always be fixed by adding the observations.  In statistical, mathematical concepts or measurement’s theory, there is no cure for systematic errors.  For example, in industrial engineering (IE) field, if a machine, say B that is used to produce the final product name A, consistently yield an output (product A) that cannot pass the quality control standard, then the factory manager got no choice, but to replace that particular machine (B).  But IE and the system of government is not a comparison apple-to-apple.  So, the readers can find their own answers….