[qopp]

I think the reason bankruptcy doesn't apply is so that lenders are more willing to give out student loans (which is good, more educated society, more opportunities) and also so they lend them out at a lower rate.

Without this, banks might require very good credit to give out loans (hard for young students to acquire).

[mywittyname]

Actually, the government guarantees the loans on behalf of the student. So if the student fails to pay, then the government will foot the bill.

The reason bankruptcy doesn't apply to student loans anymore is because a bunch of a-holes in the 70s started getting massive loans for their graduate degrees and immediately declaring bankruptcy after graduation (but before getting a job).

[oarsinsync]

> Actually, the government guarantees the loans on behalf of the student. So if the student fails to pay, then the government will foot the bill. The reason bankruptcy doesn't apply...

So what are the conditions in which the guarantor will be required to take ownership of the loan? Death? Anything else?