[RhysU]

> And the debt is nondischargeable in bankruptcy. It's a societal failing that we're letting people take on this debt.

Houses, cars, businesses, etc. can all be surrendered. Knowledge cannot. A degree cannot. Why should it be dischargeable if the recipient cannot discharge the benefits?

[colorint]

Risk of borrowers defaulting is the entire ethical justification for lending with interest. Collateralization reduces the risk of the loan, but doesn't eliminate it; after all, cars lose value over time, and businesses may or may not be able to sell assets for enough to cover their liabilities. Indeed, the closest you get to eliminating the risk of a loan is having the federal government guarantee it, so...

[RhysU]

> Risk of borrowers defaulting is the entire ethical justification for lending with interest.

Ethics has little to do with it. The lender has money you want, and you pay them for the privilege of using that money for a while. Supply and demand.

One can't collateralize a mind aside from claiming a fraction of the attached body's output.