Absolutely true, but it wouldn't prevent some people from making a bad decision anyways. I'll also note that many student's credit ratings are garbage anyways,

Absolutely true, but it wouldn't prevent some people from making a bad decision anyways. I'll also note that many student's credit ratings are garbage anyways, or they have no credit history to speak of. So the immediate consequences may be limited, and many people don't fully think through future impacts. These kinds of people also tend to be the kind of people who take on a lot of debt for a non-marketable degree.