system
Given the following post, respond as if you're commenting on Reddit:
human
What’s the logic behind giving entrepreneurs the ability to fail, dispense with their debts and start again, but not having a similar system/route available for students whose degrees aren’t paying for themselves?

I’m reading about Ossic, the headphone startup that raised 3.2 million dollars and then abruptly closed, leaving their investors out to dry. AFAIK they won’t have to cough up that money. 
Why not?

Why shouldn’t they while someone who can’t recoup the comparatively puny 100k or so they spent on their not-so-lucrative degree have to be saddled with that debt permanently?
gpt
Unfamiliar with the startup you’re referencing, but the simplest answer is the difference between debt and equity. A VC that invests with equity into a startup assumes that the investment will pay off, and accepts the risk that if it doesn’t, they won’t see a return. On the other hand, if a company goes under and they owe debt (in your analogy, student loans) they have to pay that back to their creditors, usually by liquidating the company’s assets.