You want lenders making risky loans - that's where the growth and innovation comes from. Plus, risky loans are how poor people, companies, and countries make it.
Safety leads to narrow margins, and they're a serious problem. If you're running on a 10% margin, a 1% hickup is no big deal. If you're on a 1% margin, 1% wipes you out.
The housing bubble was a combination of regulation (insisting on subprime loans plus subsidies of fannie/freddie) and govt agencies screwing up everyone's risk assessment (fannie and freddie lied about their portfolio, so everyone's risk assessment models were broken).
College tuition lending is the same sort of disaster. Govt guarantees and (now) govt loans - what could possibly go wrong....
