Don’t forget that student loans were federalized under Obama. No bankruptcy to get out of paying them back. If you default, no matter, the loan payment is guaranteed from guess who? Surprise, Surprise, tuition increases have grown accordingly with no tie to value for the dollar. Can you say Epic Bubble Bursting.
Student loans were dischargeable in bankruptcy prior to 1976. With the introduction of the US Bankruptcy Code (11 USC 101 et seq) in 1978, the ability to discharge education loans was limited. Subsequent changes in the law have further narrowed the dischargeability of education debt.
The exception to discharge for private student loans evolved over time. Prior to 1984, only private student loans made by a “nonprofit institution of higher education” were excepted from discharge.
http://www.finaid.org/questions/bankruptcyexception.phtml