The Universities have already been paid. We the people who pay taxes will be crippled. Harvard will sail on.
“We are the ones holding the bag. The Universities do not grant student loans, banks and the U.S. goverment does.”
We are holding the bag anyway.
Universities are the exclusive beneficiary of student loans. They make capital planning decision, faculty decision, administrative overhead decision based on the availability of loans to students to fund all of this.
If Student loans are allowed to be discharged, student loans will not be made to students who cannot pay them back - which will be most students in university that are financing them exclusively with loans. This will kill all marginal programs that leave students unemployable at the level that can repay extensive student loans.