I do believe it was RIGHT after our graduating class. The demand went up, the costs went up, the lending went up. They charged it because they: 1. were hedging their risk with the amount of loans to students (not exactly low risk) and 2. because they could
We are around the same age and I haven't kept up. I just went and took a look at a couple of places to see what their rates were. Anywhere from 6 to 10 %. Ouch! Of course when you get a degree in Liberal Arts and the only job you can get is a librarian aid at the local public library, then I can see why they are hedging their risk. High chance of default on $100k when that is the best job you can get.
I don't remember lenders setting up and asking people to sign up for loans, but I really tried to stay in my own little world for the most part. I just wanted to go to class, go to my shitty part time job, study and then go out and have some fun if it could be afforded, if not, then it was Kentucky Gentlemen with DCP, cheapest food and several of us sitting around playing video games or hanging out. Go to bed and catch a few hours of sleep only to get up and do it all over again the next day.
I still wonder how one can live on Ramen, Banquet Pot Pies, Fox Delux Pizza's, Chef Boyardee, bourbon, coke, coffee and water for 4 years and not do permanent damage to your body?