Secured by the is the part I focused on. When a loan is secured by something, the underlying asset is what the loan originating company retains after you fail to pay for the loan.

So if I take out a mortgage, and fail to pay for it, the bank gets the house, I am not still obligated to pay the remaining loan amount. Sure there are a few other items that occur in that process, but ultimately the loan is forgiven, of course with some credit penalties and future ability to take out loans. But I am not responsible to continue repaying the loan.

If the loan is secured by the ISA the same thing applies here. Sure there could be other stipulations and without reviewing the contracts there is no way to know, but stands to reason that the more likely situation is that they get the ISA and then can use aggressive tactics to go after the students for collections such as garnishing wages and also potentially charging them an interest for failure to repay. Though the original ISA believe has no interest, that's not to say that late penalties or other fees can't be added in later potentially.