You misunderstand. If the rules are changed so that fewer people will have to repay, then people will take advantage of that -- and fewer loans will be repayed. This means that the banks lose money. For them to stay in business (or at least to be able to maintain their capitalization -- investors will flee if they can't make profits), they've got to pass those default costs on to the customers. Thus, all of us will pay a higher interest rate to make up the shortfall.