> The first two points don't seem to have anything to do with _why_ bankruptcy shouldn't be used for student loans.

n.b. I'm not suggesting this is a GOOD system, just explaining the reasoning behind it.

I mean, they kinda do; Student loans are unlike most other loans in that there's no collateral. Mortgages have houses, USDA loans have farms, etc. They could theoretically "repo" your diploma, but that would be a token gesture and wouldn't really make much sense anyway.

In most other contexts to offset this you'd just get charged an exorbitant interest rate (which indeed does happen for many private student loans) or go through a rigorous qualification process, but the government offers low-interest loans and in return says those debts aren't dischargeable (thus removing the 'risk' of default).