“my friends who have taken such loans are on professional career paths that have pretty steep guaranteed salary increases.

Bmarum, sounds like you have some very fortunate friends to be in such a cush job. I’d be curious as to what type of profession/industry they are in that “guarantees” steep salary increases. My guess is that there are not too many industries like theirs. These jobs you speak of sound almost too good to be true.

“All of this is to say that not EVERYONE who took out an exotic loan, or an ARM, is going to end up being financially ruined.”

Not everyone who drives while intoxicated will get into a car accident. Whould you still advise them to drink and drive? I’m just using your own logic.