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I think you mean: you can't discharge a student loan through bankruptcy. You're in default the moment you miss a payment.

And if the problem comes at the scale this theory is suggesting, then like mortgage defaults, people may just ignore the collection notices until they get special accommodations.

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They can mess up your credit, sue you, and seize the money from your bank account, or get the money the witheld from your paycheck.

Theoretically, yes. But practically, if too many people default, they can't. As with recent home mortgage default levels.

If you default on home mortgage they don't get to sue you, and seize the money from your bank account. Also if you die, the government does not pay off that debt.

A foreclosure is in many jurisdiction an expedited lawsuit.

And some mortgage loans, in some states, are full recourse -- they can go after other assets (including bank balances) and paychecks. That they often don't reinforces my original point: there are plenty of levers creditors theoretically have that can't practically be employed against mass defaults and poor/unemployed people.

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