"In response to the question Diane Auer Jones poses below about student loan reforms, my colleague Ben Miller (who has a frighteningly detailed understanding of the intricacies of federal loan policy) offers the following," writes Kevin Carey, policy director for Education Sector, in the Chronicle of Higher Education. "Students are too young to have collateral and a history of credit, so it is a risk to lend to them. That's why private market rates are higher than the ones determined by the government. Now, could you get a loan with your house as collateral and then use it to pay for college? Absolutely. But that's not a student loan. It's a home equity loan and it's the same as if you used those funds to remodel your house. For most families, that probably is a better deal than getting a student loan. But if you don't have a house or have no collateral, that isn't an option. Try walking into the bank and just asking for a $20,000 loan with no collateral. My guess is you'll end up with an interest rate well above 8 percent."