Oh, it&#x27;s much worse than that.<p>These are government-backed loans.  If they go into default, <i>the government pays the loan in full</i>, automatically.  And the lender can still go after the borrower!<p>After being fully reimbursed for the loan, they keep going after the student who defaulted, who can&#x27;t get that loan discharged in any but the most extreme circumstances (i.e. can&#x27;t work and will never be able to again).<p>What a scam.