in the US college loans are backed by the federal government so there's minimal risk to the lender, that's why the interest rate is low. Remove the federal guar

in the US college loans are backed by the federal government so there's minimal risk to the lender, that's why the interest rate is low. Remove the federal guarantee and they can be dischargeable in bankruptcy. However, then the interest rates go sky high (like credit card rate high) because now all the risk of the loan is being taken on by the lender with no federal backstop.