Thanks for the responses. Thanks Joe for your optimism. I hope you share your knowledge and views with those in a position to make a change.
Regarding the concern expressed for how the borrowed money might be used and how one might be taking advantage of the government, my perspective is this:
My daughter's student loans are Federal deferred loans that are always completely applied to her college costs. When they come due, they will carry a fixed interest rate averaging about 6% I think. Some are higher.
That's both income to the Feds, as well as incentive for me to repay asap, especially with the dismal investment alternatives these days.
Sounds like "itstoomuch" got a pretty good deal with a variable PLUS rate of 2.5-4.5%. I understand it's been 8.5% since 2006. In any case, the Feds are getting paid to lend the money and apparently, the student was found in need of it.
At the very least, the Feds could allow distributions to be applied up to a certain number of years after the year(s) in which the loan was taken.