Education makes extensive use of debt factoring for risky loans. Factoring is selling client debt at a discount for instant cash. The financial institutions th

Education makes extensive use of debt factoring for risky loans. Factoring is selling client debt at a discount for instant cash. The financial institutions that buy the debt are usually responsible for collecting unless they decide to pass it around again. So in a sense, universities are sort covered against losses from that kind of debt, not students.