Yes. If your credit risk is so low that non-dischargeability is a bad deal, presumably you can just get a private, fully dischargeable loan.

The basic structure of this argument is really straightforward: if student loans were dischargeable in bankruptcy, it would be irrational for a lot of student borrowers not to go into chapter 7 after school, when their earnings are so low that they qualify and their time horizon for major financial decisions is so far into the future that their current credit rating doesn't matter.