Welfare by definition does not have to be paid back. Student loans do. Student loans make some peoples lives significantly more difficult than had they not gotten the loans or the education. The loans are not always subsidized by the fed and the " guarantee" only comes into play of the borrower defualts, at which point the fed buys the loan from the lender and then the fed comes after the borrower. Giving a high risk borrower a line of credit is not welfare. The lenders don't lose. Calling a student loan welfare is like calling a high risk borrower credit card with 35% interest welfare