Suppose it was discovered that B of A,  JP Morgan Chase, and other banks had actually been making, not losing money on defaulted subprime home mortgages, and in fact made more money when the loans defaulted than if they remained in good stead.  Now, suppose further that it turned out that Fannie Mae had a similar perverted financial motivation that gave it a clear preference for loans to default. Finally, suppose that even the Federal Housing Administration actually realized a net profit on defaulted subprime home loans.  This is, in fact, precisely analogous to what is happening, and has been happening for years for defaulted, FFELP, student loans- which comprise the large majority of all student loans, nationally.
Government Profiting on Defaults

"... And indeed, there is clear and obvious evidence that the Office of Federal Student Aid has, over time, adopted policies that hurt, rather than help students, There is also clear evidence that the Office of Federal Student Aid acted in such a manner (by both actions, and inactions) that ultimately led to increased borrowing, higher college prices, and a higher default rate."

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No, it's not possible for student debtors to escape financial devastation by declaring bankruptcy.