[Stephen H]

I'm a little confused as to what you think students normally do with the loans that they still have the money to pay it back at the end.
Student loans are spent. Spend it on tuiton, spend it on books, spend it on poker, spend it on eating out every night of the year - at the end of the day, you have no money.
So how are student loans paid back? By the student getting a job and paying them back slowly over the years. Are these college kids who are losing at online poker somehow less likely to get a job after college than college students who don't lose money at online poker? I don't see any reason to believe that.

So the real issue here is, how well are student loans regulated? I'm pretty sure playing poker is the least of the problems for mis-spent loan money.