Interesting point, quite poor judgement by the banks.
In my opinion, in the end the consequences are the same.
In one, you bankrupt yourself and the bank comes and takes away everything that belongs to you.
If that doesn' t cover it all and since you' re still alive, they can lay their hands on part of your (future) income when you have one, or any assets, from your shoes to any heritage, for as long as you owe them money.
In the other, your family loses the home or other assets, a bit more dramatic.
The former is trickier for the banks but either way, you don' t just get away with it.
Add legal expenses!
Bank lending for flight training will come to an end very soon.