Unlike most loans which have assets (home, car, etc) that can be confiscated a student loan doesn't result in a physical resource but in knowledge held in the students mind which cannot be taken.
Bullshit. You keep posting this tired incorrect argument all over this thread. Most debt discharged in bankruptcy is unsecured. (In fact, if people didn't have unsecured debt, they wouldn't even qualify for bankruptcy.)
How exactly do credit card companies confiscate "assets" from vacations taken and meals eaten out? How exactly do drs and hospitals confiscate medical care previously provided? (Which is one the biggest causes of bankruptcy in this country.) Well of course they can't.
You're right about the credit cards, but the inability to discharge a federally-guaranteed student loan is a large part of why the loans are issued at 4-8% instead of the 17-30% that you see on credit cards.