[quote=earlyretirement]
These banks and lenders are almost totally protected with the way the laws are set up. And they want to dole out as much as possible.
[/quote]
Exactly. Quickest way to break the college debt bubble is to allow student debt to be discharged in bankruptcy. Nothing will change the behavior of lenders quicker than having having the prospect of default staring them in the face. Want $100K to go to school better have the grades and major lined up that produces a positive return on investment. The non-charge nature of student loan debt came from a couple of high profile cases of doctors and lawyers declaring bankruptcy right after school and then getting a high paying job shortly after.
If you’re really worried about doctors and lawyers strategically defaulting right after school and then getting a high paying job after the bankruptcy clears then put a special stipulation in for that. You can put some kind of probationary period on the debt being discharged. If you’re income goes up after the bankruptcy during a probationary period (3-5 years) you’ll still be on the hook for some or all of the debt. Nobody is going to wait 3-5 years to start their career just to be able to declare bankruptcy and avoid the college debt.