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I think the main reason behind this is that student loans are unsecured, and the people they are making the loans to generally have little to no collateral to put up. In order to incentivize lenders to make the loans, they need to have some sort of guarantees, otherwise there would be little incentive for everyone not to declare bankruptcy after graduation, take the hit on the credit score for a few years, and then emerge with a basically free education.


Or you could take the Australian approach: loans from the government are paid back via taxes once you're earning enough.

http://en.wikipedia.org/wiki/Tertiary_education_fees_in_Aust...

That way they can't be written off, but if you don't make much initially you're not saddled with paying a fixed amount.




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