Student loans are a rapidly growing $85 billion a year industry fueled by the substantial higher economic returns associated with a college education, increased demand from students and their parents, and grant and scholarship funds that have not kept pace with rising school tuition and fees. This report describes federally subsidized and guaranteed loans, examines the private student loan industry, and discusses issues relating to student debt and financial counseling. It describes practices that have led to allegations and findings of fraud and abuse in the student loan system, and recent federal and state legislative and administrative responses. The report was requested by Assembly member Sally Lieber in order to better understand the national student loan scandal and responses to it. (Contains 9 charts, 4 tables, and 136 endnotes.)