>The only other option is not to give them loans at all even if they put up a high down payment This is exactly what happens - it's not easy to get a mortgage

>The only other option is not to give them loans at all even if they put up a high down payment This is exactly what happens - it's not easy to get a mortgage without a permanent status (that 0% of foreign students would have). A crazy downpayment would be requested upfront.