> The inability to be voided through bankruptcy, as I understand it, was setup so that educational loans would not wind up with insane interest rates. Given th

> The inability to be voided through bankruptcy, as I understand it, was setup so that educational loans would not wind up with insane interest rates. Given that they are unsecured (there's nothing for the lender to repossess if the borrower fails to pay), there is much greater risk to the lender. Most loans issued before 2010 are guaranteed by the US government. So while they are technically unsecured, the government will cover the lender if the borrower doesn't pay. Since 2010, student loans are actually owned by the government, that is, students are borrowing money directly from the US federal government. So, in most cases, if a student loan were discharged in bankruptcy, it would be the federal government that would eat the cost of the loan.