> The effect of making these loans exempt from bankruptcy just inflates their value which puts colleges into a position where they can inflate their fees - safe

> The effect of making these loans exempt from bankruptcy just inflates their value which puts colleges into a position where they can inflate their fees - safe in the knowledge that banks will lend practically anything and students have very little choice. While this is (was?) especially true for student loans, it applies to all loans - their availability increases prices, because there's more cash in the market. Forcing people to take loans, to the benefit of lenders.