Kudos to USC for reporting on this staggering default rate. The lending system is the epitomy of big, bad government. The removal of free-market, consumer protections like bankruptcy rights lies at the core of this problem. Conservatives everywhere should be very concerned about this, and even more concerned that the government has been not only profiting on the lending system, but even profiting on defaulted loans, and using the proceeds to fund the Affordable Care Act. We are a better country than this. At a minimum, the government must be reined in on this by returning the bankruptcy rights that our Founding Fathers demanded in the Constitution. Only then will we see decreased borrowing, normalization of prices, and a stable lending system. If this doesn't happen, the entire thing will evaporate into a mist of big-government illegitimacy. There is a bipartisan bill in Congress right now, HR. 2366, that will do exactly this (return bankruptcy rights). The Trojam Family should get behind this. I suspect Max Nikias knows that this is the right thing to do.