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Get this: student loans are the ONLY debt you cannot escape through personal bankruptcy.

You cannot escape tax debt through bankruptcy either. Your comment is misleading about student loans. First subsidized student loans are heavily subsidized through lower interest rates and interest payment deferrals. The basic deal is that a student is given these generous subsidies in exchange for the inability to discharge the debts in bankruptcy. Students can choose the unsubsidized loans if they want the ability to discharge loans in bankruptcy.

The more important point noted in the article is that students do not need to discharge debts in bankruptcy. The debt is forgiven after 20 years if minimum payments are made (10 years for government and non profit employees). Note that the minimum payment does not even need to cover interest on the debt. The minimum payment is based on reported income.

Your post paints students as victims. Although some profit schools have been accused of deceiving students about job prospects and school credentials, most students are not in these situations. The revised guidelines provide even more incentives for students and universities to collude to receive maximum level of subsidized loans. Students have little downside risk from over borrowing as the subsidy increases the worst a student's later situation becomes.

The subsidies are preventing meaningful reform of higher education. My university increased tuition by 9 percent this year on top of many increases since 2000. Faculty and staff received 3 percent raises. Staff on a defined benefit pension will soon receive 20+ percent retirement contributions by the taxpayer. We charge more for online courses than traditional courses. Given these levels of subsidies, it is difficult to find meaningful competition. Much of higher education can use a commoditized product, standardized evaluation, and unbundling of services to sharply reduce tuition. Lower priced personnel can be hired for tutoring and grading. Research can be eliminated to focus all resources on instruction. The potential is available but federalization of higher education prevents reform.