For precisely that reason. Loans aren't dischargeable via bankruptcy, but the lenders still want their money if the primary loan holder can't or won't pay. It's

For precisely that reason. Loans aren't dischargeable via bankruptcy, but the lenders still want their money if the primary loan holder can't or won't pay. It's some insurance that they'll get their money back, especially when lending to people with no credit (like 18 year old college students).