yes. when i was a student we did have student loans. but you were sent to a local bank to interview for them. you got them, the banks were very good about issuing the loans because they looked forward to the students becoming good banking customers when they graduated and started earning their own way. Indeed, that happened a LOT. We were grateful to the bank for entrusting us with funds when we couldn’t repay or genuinely qualify to borrow them. A lot of gratitude made for good banking business...
Oh yeah, I am sure there were some lending losses (especially on loans to art and history and poli sci and sociology students). But most of those collection difficulties were NOT because the debtors were crooked and didn’t want to repay. It was just that certain college majors didn’t — and still don’t— qualify anyone for gainful employment.
Subsequrntly, the agreed monthly payments on the principal and the interest due. Note that it was an unsecured loan, not even backed by insurance as would other normal unsecured loans.
The real problem was when both banks and colleges became very lax in their confidence that the student was qualified to be admitted , educatioally prepared for it; and that the graduate would be employable and committed to his/her word. No co-signers!
The result? The unsecured loan cannot be trusted.
I paid mine back, in full.