If the word "loan" is in the name of the financial product, you are expected to repay. At some point we need to be upfront with high school graduate and tell them it is a bad idea to go study art history at a $40k a year no-name private college.
Median Lifetime Earnings: https://www2.ed.gov/policy/highered/reg/hearulemaking/2011/c...
Cost of School and Lost Earnings vs High School Grad: https://trends.collegeboard.org/sites/default/files/educatio...
BLS on Pay by Education https://www.bls.gov/opub/ted/2015/more-education-still-means...
The National Mortgage Lenders Association defaulted on their mortgage. Many business and corporations, large and small, go bankrupt and discharge debts. Only individual consumers get trapped in non-dischargable debt.