> wouldn’t that make the dominant strategy for many to as quickly as possible declare bankruptcy upon graduation Why not do that now as soon as you get any typ

> wouldn’t that make the dominant strategy for many to as quickly as possible declare bankruptcy upon graduation Why not do that now as soon as you get any type of loan? You don't just "declare bankruptcy". And bankruptcy law can be changed as desired to prevent that. There's nothing special about student loan debt versus other types of debt. In any event, requiring repayment based on income (like 7% of income up to a certain monthly amount) is almost certainly a better policy. The students and lenders both have the right incentives with those schemes.