No one expects them to. The point is the credit card company accepts the risk of default on no-collateral loans in part because they have confidence (credit report) in the chances of being paid back, while a student typically has no such supporting evidence to back their case.

I'm a college student. I have two credit cards with credit limits of $500 and $1700. My tuition (with room and board) is $58,000 per year. That's the difference.

Those cards generate lots of fees. How can the CC have confidence in the credit report when they issue cards to people with virtually no credit. They are wildcatting.

https://en.wikipedia.org/wiki/Wildcatter

Right, but just imagine the fees you'd need to establish on student loans to wildcat them!

Late billing fee: $10,000 Processing fee: $1,500 (Etc)

Are you assuming that every college student who is issued a $600 credit limit is a deadbeat? I don't think that's the case.

edit: My point in the post above was simply that _if_ it is possible on average for an 18 year old to have a 'good' credit rating, _then_ credit ratings are practically without meaning.