"I think the basic problem is that lending has become very, very readily available at dollar amounts and to students who don't always have the capacity to repay, either because college isn't the right choice for them or they're making bad choices in college. There's been no accountability for the higher education institutions," she said.
"If a bank was doing this, they would probably be in jail, " Bair added.
In a post-financial crisis world, the government is not helping anyone by making loans to people that they cannot pay back, she said. In this exclusive interview, she proposes a solution that could put an end to the crisis, or at least lessen its potential repercussions.
Editor's note: Santelli Exchange Extra Innings is a bonus segment not seen on TV featuring Rick and his guest for that day. The interviews are longer and go deeper into the topics Santelli cares about.