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> Let people default on their student debt with 5 years of bad credit, and colleges will fix themselves.

How can the colleges fix themselves? They are not the one's giving out the loans. Maybe that's how it should be... It forces the colleges to have a vested interest in their students' future.

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Sure, they're not the ones giving out loans. They're just the ones who artificially and astronomically inflated tuition to absorb all the available loan increases.

That is what needs to be corrected, by making the high loan-driven tuition levels no longer a reasonable offer in the marketplace, to force the prices back down to more service-oriented fees instead of a profit center.

Colleges will lower costs or give more scholarships when lenders can't give out arbitrary sums to anyone which must be paid back. That is, if colleges want the same attendance. It could be that they keep the same costs and only a few students can pay. That opens a lot of business potential for everyone else though.

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