If a graduate can't pay back their loan, all four of the involved parties should have to take a hit. Yes, four: the graduate, the bank, the university, and the

If a graduate can't pay back their loan, all four of the involved parties should have to take a hit. Yes, four: the graduate, the bank, the university, and the taxpayers. You could divide it up into 4 equal parts for all I care: if someone has paid back at least 25% of their loan, and get want to declare bankruptcy, they should be allowed to do so, but the taxpayers shouldn't pick up the whole check. The bank should definitely eat some of it, and the university should take a financial hit as well.