Earlier quoted context omitted.
But good luck getting money out of a student without actually getting a judgement. They'd basically be limited to reporting it to credit agencies and just asking them to pay. A arbitration agreement isn't enough to get a bank or an employer to hand over any money from the student.
I'm not particularly familiar with arbitration and the resulting paperwork, nor with financial claims against another party. However, I do know that minutes of mutual settlement can be filled with a court, and the court will, based on the affidavit of filing, enforce it as if that court had ruled. And for instance, this is in a Arbitration submission agreement I found: "The parties agree to abide by and perform any a…
This was in the context of the optics of 'suing their students'. So you serve the student, pay a lawyer to appear in court to ask for a default judgement, then student offers a defense, and a judge potentially grants the judgement. There's functionally no difference with respect to optics.
Also ISAs have not been heavily litigated, so no one really knows what would happen if a company tries to enforce them.