http://www.zerohedge.com/news/2014-03-04/what-student-loans-are-really-used-depressing-case-studies
http://www.usnews.com/education/best-colleges/paying-for-college/articles/2013/07/24/undergrads-blow-it-with-student-loan-refunds
http://www.wsj.com/articles/SB10001424052702304585004579415022664472930
That goes double for State universities. People like to single out 'for profit' because 'profit' is an evil, loaded word- as if making a 'profit' is morally wrong....State universities have turned into degree mills that churn out diplomas for various flavors of useless marxist studies.
The thing about State Universities is not entirely true. Of course, I'm attending the University of Alaska - Fairbanks right now for a STEM degree, so I'm probably biased.
But yeah, it'd be universal.
Reviewing your links -
First: Outright fraud, 'paying rent to mother, pay cellphone bill, and catch occasional movie' fails to raise my ire all that much. Let's face it, cellphones are practically a requirement anymore, an adult should be paying 'rent', and we don't know mom's financial situation otherwise. 'Occasional movie', well, some entertainment is to be expected. Other than that, I see examples, anecdotes, not data on abuse. A man using the loans to 'stock the freezer' so his family doesn't have to worry about food for a bit longer? The loans are supposed to help cover living expenses. Said anecdotes show that tightening the rules for 'part time' students would be good. They should pro-rate the loans on the basis of how close to 'full time' you are.
"About 25% took loans that exceeded tuition, after grants, by $2,500" - No mention of living expenses. Here at UAF, if you live in student housing, you have to buy a 'Meal Plan', the cheapest of which is around $1.5k per semester. Would that be included in 'Tuition'? It's not on the documents they give you...
Second: Some abuse stories, not much different than teens with their first credit card often get into. I'm sorry but debt consolidation and lower interest rates only makes sense. I actually applaud the family that started a business and are actually making money.
Third: WGJ link wants me to subscribe. Sorry, nope.