Its been a decade since I left college. I was fortunate enough to not have to get student loans for my undergrad degree. Now, I am tossing around the idea of graduate school, but will have to have it all paid for through scholarships and loans. I get the difference between sub and un-sub loans. However, I have always wondered what happens if you default on your loans. You default on your car note, they take the car. The house? Same thing. They can't take your degree, so what recourse does the lending institution have against defaults?