Because now the internet exists. Back then, probably only a few students knew how to abuse bankruptcy laws.
If bankruptcy laws were abusable by students in the present day, EVERYONE would know how to do it
Because college was infinitely more affordable.
The argument is that you are reversing the cause and effect.
Loans are unable to get discharged -> banks give more loans -> schools ramp up prices -> loans are now even harder to discharge
It's a positive feedback loop
Right, but there's no feedback. Increasing school prices makes loans harder to pay off, not to discharge in bankruptcy. They can either be discharged or not in bankruptcy.