You seem to be aiming your ire at the wrong target. It’s unfortunate if a debtor can’t pay back the debt for lack of money, but if that’s the case, the money simply isn’t there to be found.
The real beneficiaries were the colleges and universities which used the student as a conduit for the loan money in the first place.
I actually think the solution to the crisis is relatively straightforward.
1. Allow for normal personal bankruptcy on student loans after a period of time, in the same fashion as credit card debt or any other personal debts.
2. Seek redress for the bankrupted debt from the university which granted a degree to a student unable to obtain a job which would permit the loan to be repaid. Ie, a clawback provision.
This would have the beneficial effect of forcing liberal, spendy colleges and universities to actually focus on useful and marketable programs for their students before wringing loan cash out of them.
Then who is going to want to be in the business of handing out student loans?
I don’t disagree with either of those.
But my point still stands.
Have a good evening.
L