[chopsueyar]

It wasn't until 1991 that student loan debt was no longer dischargeable through bankruptcy.

So, although unlikely, she may have based her decision on the possibility that, worse case scenario, she could have declared bankruptcy.

Now the $20,000 personal loan for living expenses, I assume would still be dischargeable in bankruptcy.

[danielweber]

I read the article as her using student loans to cover living expenses.

Which made sense at the time, since it was being subsidized.

[chopsueyar]

I have a hard time believing she could obtain a student loan without any further classes to attend, that is why I assume it is a private loan.