That's a fair question. I think the student loan situation is a bit akin to the mortgage deal where they were making bad loans because they knew the government would cover them.

I actually think certain schools, including some of the more dubious for profit institutions, basically exist as a way to generate these loans which are really attractive for a certain sort of lender who lets people into school who probably haven't considered the ramifications. I see it as a sort of predatory lending scheme, really.

Sadly, I also think because the loans are guaranteed that it artificially inflates the price of tuition in a deal that both the schools and lenders like, which is supported if you look how much financial officers now make at certain schools, but it works to the detriment of the student.

I agree people need to pay their obligations. But I also think schools should be much more affordable, and the government through this policy has created an education bubble. We send people to school they can't really afford and then watch them try to struggle out of it. Some can and many do, but it doesn't need to be this difficult.

I believe that if you allowed bankruptcy to be filed, you'd have fewer loans issued and for smaller amounts. Maybe you would have fewer people going through school, but that's not a bad thing either as you don't want people going just because they can get it paid upfront.

I see your point. However, any sort of loan forgiveness and/or bankruptcy will have to be financed with US taxpayer dollars. It is not as simple as "writing off" the debt.

Additionally, there alternatives to taking on massive debt for a 4 year school (party vacation). A student could opt for going to a 2 year community college then transferring to a 4 year college or university for a fraction of the total cost of attending a strait 4 year school.

I just feel that if a person was "sold on something" that they are responsible for the choices that they have made.