What rightfully should be returned to the lenders—whether taxpayers or private—would be kept by loads of middle-class families who sent their kids on four or more years of Disneyland on someone else’s dime.
I bet you there’s nobody out there who couldn’t keep current on their stupid loans by working another 20 hours a week, and the vast majority of them could do it with just 5 more hours a week.
That’s what they should do to pay it off and if they do, maybe they actually will have learned something from their borrowed educations after all!
That assumes jobs are available.
The current regulatory/tax/tort environment makes it risky to employ young, inexperienced workers. It often just isn't worth it.
Student loans have been masking this problem for years. The employment rate for 18-24 year olds is just 54%. Nearly 40% of that age group are in college. WIthout loans, the unemployment rate would make a nice jump -- and the government doesn't want that. It might make them look bad.