In 1988, Bill Clinton signed the Higher Education Amendments which made student loans NON-DISCHARGEABLE. Essentially, he handed the students to the bankers on a silver platter. These loans should be dischargeable and forgiven, because in my opinion they are FRAUDULENT.
I don't think you realize the amount of damage this has caused to US society as a whole. There is an entire generation of kids whose lives were ruined because they were told to get a university degree which turned out to be worthless and expensive.
Essentially you are saying she should have known better. I read your comment and you say that she is clueless, and I cannot help but think that you are also clueless because you also do not understand how the financial system actually works. But you are not alone, because all of the "expert economists" also do not understand, everybody is clueless.
Believe me, this is a crisis that will be felt for generations.