Yes, there is a student loan crisis. The answer is actually pretty simple. Amend the bankruptcy code to allow those loans to be discharged. And, yes, I do understand the ramifications of that.
But when tuition has skyrocketed compared to inflation and wages, it’s because so many schools are playing with monopoly money. There is a bubble.
Would this mean that students who are uncreditworthy be less able to get student loans? Probably. But everyone acts like just because there is a chance that these loans might be discharged in bankruptcy that everyone will just run to file bankruptcy. Most people (you know, natural ones—corporations have zero compunction) have a reluctance to do it.
Sometimes I really regret not putting all of my student loan debt on an American Express card and filing.