Bonds are the most expensive way to finance projects.
Supporters say that all of the cost will be paid for by the veterans who receive the loans, but taxpayers will need to pay if veterans default on the payments. The government should not be in the money-lending business when there are plenty of private banks and other lenders. Participation by aging wartime vets is quickly declining. Repossessed property inventory has recently grown. Cal-Vet overhead costs are growing even with fewer loans being issued.