And just hope students don't default right after they graduate? You realize how picky they'd have to get? 40% of undergrads drop out [0] who would probably all default alone which is completely unworkable to be profitable considering credit card default rates are between 1.5 and 7 percent [1] and look at the interest rates they charge.

It would also create a massive false negative problem where kids whom could have succeeded never got to go to college because banks would get so picky if they even were too somehow make a loan like that work.

[0]: https://educationdata.org/college-dropout-rates#:~:text=In%2....

[1]: https://fred.stlouisfed.org/series/DRCCLACBS