As it stands, FedLoans will typically disburse the loans that charge students the highest interest rate first, and apply payments to these loans last. This practice maximizes the the cost to students, by allowing FedLoans to charge the highest interest rates for the longest possible time.
This was standard practice in the credit card industry, until the Consumer Protection Act of 2010 made this predatory behavior illegal. Yet, even today, a federal program designed to allow more people access to the money they need to attend college uses these techniques to charge naive students the highest possible interest rate as long as possible.
The poorest students have to borrow the most, and receive these high interest rate loans. Why does our government charge the poorest exponentially more?