There is also a massive difference between a $500 credit limit of hypothetical spending for a credit card and actually giving out $100,000 in an unsecured loan. At the worst case scenario, your credit card loss will probably on average be $50 per customer if not much less, but for unsecured student loans it will be much higher, which will require higher interest rates that further increase defaults.
The reason student loans aren’t dischargeable in bankruptcy is because it’s basically literally impossible to collect on them, you can’t repo a college education
> The reason student loans aren’t dischargeable in bankruptcy is because it’s basically literally impossible to collect on them, you can’t repo a college education
You can revoke the degree. Given that most people out of school don’t remember most of school anyways this should be enough for most.
I mean some would. Usually the jobs where people care about having a degree would. Like research. The rest of us, sure. But then again, that means you waisted money.
The reason student loans aren’t dischargeable in bankruptcy is because it’s basically literally impossible to collect on them, you can’t repo a college education