It would definitely limit the loan size. Someone with $50,000 in debt will default at the drop of a hat, and so they will never be extended $50,000 worth of de

It would definitely limit the loan size. Someone with $50,000 in debt will default at the drop of a hat, and so they will never be extended $50,000 worth of debt, and so schools will need to charge less for their service. Someone with $4,000 worth of debt probably will not default, because the hit to their credit isn't worth it.