If only someone with access to thousands or even millions of repayment histories and income estimates could evaluate default risk on such loans. /s

The problem is that the incentives for everyone are broken. Usury has been banned or made into a crime throughout history, why did we legalize it when it comes to student debt?

Yeah I bet there’s something deeply different about the collective psychological impact of being trapped because of an ostensible bad decision (the wrong major) vs simply having no options regardless of what major you choose. When I talk to my debt-shackled American friends there’s some acknowledgment of studying the wrong thing, even knowing that as kids we’re not equipped to make a smart decision, as you say. In China it seems a lot more bleak, like whatever you study you’ll likely end up unable to use it.

Also, in the US there isn’t pressure to do factory work specifically if you can’t get a job. That’s a particularly rough job, especially if you were pursuing white collar work, but it’s where the ccp is pushing folks.