[filoleg]

In the short-term, yes.

However, that scenario you are describing is unlikely to last beyond those people who were given the loans before student loans became dischargeable. Lenders would simply become extremely picky when giving out student loans, in the scenario where student loans are dischargeable.

Probably something along the lines of "oh, so your degree is not in CS/engineering/pre-med/<other-high-earning-potential-degree>? And you aren't taking the loan out to attend Stanford/UC/<random-Ivy-school>? And you don't have much in terms of collateral assets to be discharged in case of a bankruptcy either? Well, we cannot offer a loan, sorry". Which would essentially make student loans not an option for vast majority of students.

[itsyaboi]

...that sounds reasonable. Would probably force tuition prices down since colleges would prefer some income vs none at all.

[filoleg]

On the surface, it sounds reasonable, indeed.

However, I followed the logical chain of thought of where that approach would lead. And I honestly don't want to live in a world where we reserve liberal arts and other non-STEM degree just for children of the wealthy, while the rest have to settle for "useful degrees". And I am saying that as someone who went to a college where almost everyone was doing STEM (which makes sense, given it was an engineering school).

[heavenlyblue]

On the other hand, imagine giving a loan for someone to pursue Harry Potter Studies Masters?