If that was an actual problem wouldn't people be doing it without the college already? When I was in my early 20s I got non-stop credit offers and I could have easily pulled out tens of thousands in crappy debt.
Is it the low single digits of a student loan which is not easily dischargeable?
Or is it 18-30% like you’d expect from a loan where the recipient can discharge it more easily?
This proves the point.
From the individuals' perspective, overusing uncollateralized debt to be discharged is a good deal. That loss is offset by the creditor by issuing higher interest to unsecured credit lines because people can default on their debts. From the creditor's perspective, it's risk adjusted for people who default.
It just logically follows. I can't help you understand past this.
I see you haven't heard of /r/churning. Although it doesn't involve bankruptcy, because then the sheriff comes down and takes your property from you...