Absolutely. There are three parties here: Schools, students, and lenders. Schools set the​ price based on what they can get students to pay, which is a functio

Absolutely. There are three parties here: Schools, students, and lenders. Schools set the​ price based on what they can get students to pay, which is a function of the willingness of lenders to give the students money. Lenders approve borrowing students based on their likeliness to repay, which is currently very large due to the legal framework. Students select college programs and loans based on a convoluted mix of 17-year-old wisdom, well-meaning advice suggesting they pursue their dreams, their ability to get the loan, and a hazy idea of future employment, income, and repayment. It's obvious that increasing the penalties to the students after graduation is about the least effective measure you can take. If students were allowed to discharge student loans through bankruptcy, that would still be a hefty penalty. Lenders would be less willing to give them money. With less money available, schools would have to charge less.