You do understand that if someone declares bankruptcy, you as a lender, would get $0. A newly minted graduate, now saddled with $100k in debt to you... why woul

You do understand that if someone declares bankruptcy, you as a lender, would get $0. A newly minted graduate, now saddled with $100k in debt to you... why wouldn’t they declare bankruptcy immediately? Your willingness to lend either implies that you believe 22 year olds with $100k in debt aren’t willing to take 7 years of bad credit score, or you think people are inherently good, and wouldn’t declare bankruptcy because it’s not a moral thing to do? Where do you expect to find these students who are adverse to 7 years of bad credit, or with exceptional upbringing and ethics? I’m assuming you care about being repaid. Maybe you’re willing to take a loss on 99% of your loans? Maybe if you’re wealthy you can afford to make 10 of these loans a year instead of buying a new yacht? I don’t see how this scales beyond a few wealthy philanthropists.