> So, what’s the solution? It’s simple, but not easy: "Make student loans dischargeable in bankruptcy again. Tie lending terms to the value of the degree. Im

> So, what’s the solution? It’s simple, but not easy: "Make student loans dischargeable in bankruptcy again. Tie lending terms to the value of the degree. Impose risk-sharing requirements on educational institutions – Schools would face financial penalties or need to contribute to a risk-sharing pool if their graduates default at high rates." ================= Sounds reasonable. Making people who were either faithful repayers or non-borrowers in the first place, pay for the bad or unlucky choices of a few is obvious bad and unfair policy. There are always situations where people who make mistakes have them forgiven but pay a price. I think the public would accept something like that, but not a program where the debts are forgiven outright. Schools need to take a haircut and repay some of the bad debt themselves, just like a bond default does not result in the bondholders receiving 100% of what's owed them.