That wasn't a big problem before 1998. There are many disincentives to bankruptcy which is why people who are not broke or those with prospects to earn aren't lining up to do it.

If a college actually prepares a student for the job market they would be insane to do this; if it doesn't they may have no recourse.

Very few forms of debt are excluded from bankruptcy. IMO it's far from humane to make college, of all things, in that category. Should those who pay huge $$$ for American degrees and then can't get jobs be forced to pay the bloated costs despite having to go back to a retail job where they can barely survive? The original act takes a civil liberty, which most people enjoy, from a vulnerable group. Young people just starting out who may have made a huge investment that didn't pan out... being unable to declare bankruptcy prevents such young people from getting back on sound financial ground for potentially decades. It's embarrassing that the Clintons haven't taken more heat for this, arguably nothing but an act of crony capitalism.