The deal was for a loan to be given and for it to be repaid. The contract contains language for what happens after the promise is broken, but the fact remains that a scumbag broke a promise.
Your rationalization for a scumbag is spoken in used-car-salesman-ese and falls flat. Ugh.
Your inane conflation of contract law and "morality" is just one more indication of why this site is just a shadow of what it once was.