Why don’t you just demand that the goverment lower your loan balance. Get a protest started. Government should bail you out in no time.

But seriously, I do think a far better way the goverment could deal with this is giving people a mulligan- The right to eliminate any one ding from your credit report.
Now I haven’t thought through all implications of this, but overall I thinks its far better than the goverment’s current bailout plan of encouraging debt servitude by keeping people in bad deals.