This seems like it all reverts to a tax policy in the end, as these loans are guaranteed by the federal government. We either tax everyone (free college, allowing bankruptcy discharge) or individuals (no discharge, pay back loan).
The questions should be: what do want as a society, and "will allowing students to discharge public loan debt cause a greater GDP increase than the loss of tax revenue from them not paying back the loan"
As long as the fed gov is guaranteeing them, it's just "taxes" with extra layers of obfuscation. We pretended they were loans and now people are trying to solve a loan problem instead of a tax problem.
It will become a loan problem if/when the loans are private. And a policy problem at that point if employers can no longer get educated workers.
I've always argued that the most business friendly thing a gov can do is provide highly educated workers at a steep subsidy for businesses to use as human resources. Always astounds me when "pro business" people want to slash education.
Being able to buy a degree at public auction is absurd.
Got the last laugh, though, as they hammered me for donations to the alumni association for the next two decades. Not one penny.