Yeah, because it's worse than bankruptcy. You can't even get rid of the student loan debt if you go bankrupt. I'd say that's a bigger string attached than any other type of loan available. This is the ultimate string of death and why we're in this crisis right now!
I mean these are people who largely aren't qualified for the debt otherwise having either no job or a low paying job and little credit history and are given the money on the promise that their degree will get them a career when they graduate, even thought that's far from a guarantee.
It's the kind of outrageous overreach some fat cat banker would put in the contract to reduce his liabilities but then the person in the government who's job is protecting the general public was asleep at the wheel and failed to have it struck from the contract. Did the clause pass because the kids don't put up any collateral? The college loan business is so screwed up.
When an 18-year old can take on tens of thousands in loans with mostly no strings attached (well, no bankruptcy) so that they can attend a big college which is little more than a summer camp with some classes thrown in, you've got a problem.
I'm a phd student at a state school. As a graduate student I am allowed to take on up to 240k(!). I love learning and I enjoy school, but anyone who has been in academia for any length of time at all and doesn't realize it's largely a scam with good intentions which is designed to pass money around baffles me.
Any education reform that doesn't cut back on loans and rethink how we do it is broken. The amount of money that gets poured into my school combined with the incompetence I've seen at so many levels is astounding.
The education system in America is largely broken. Many high schools are worthless because it's expected everyone's going to go to college and take remedial classes in order to get a piece of paper which they probably won't use for their job and they'll spend the rest of their 20s and 30s paying off.