Federal Loans are basically unlimited to anyone without an adverse credit history (so 18-24 year olds with no credit qualify). That is the definition of bad lending. There is no linkage between likelihood of making the investment back and size of the loan.
That's not true, unless you're a grad student or an independent, and can take advantage of PLUS loans. As a senior, I can only take out 10 or 11k in subsidized, and 2k in unsubsidized loans. The rest has to come from family, aid or private loans.
