And, on the flip side, the loans cannot be discharged through bankruptcy. Theref...

theorique on March 23, 2014 | parent | context | favorite | on: It’s impossible to work your way through college n...

And, on the flip side, the loans cannot be discharged through bankruptcy. Therefore, there's a huge incentive on the lender's part to make such a loan. (Similar to NINJA loans and liar loans in the mortgage banking crisis of a few years ago.)