Not forgiven. But college loans should be able to be discharged in bankruptcy. Both sides need to pay for their mistakes. The borrower for spending money on ineffective education, and the lender for providing financing without regard for demonstrated ability to repay. Return the risk.
Ditto. The threat of complete discharge in bankruptcy would immediately cause debt holders to create better deals, and would immediately reduce the foolishness of loaning big money to the immature and ignorant.
Perhaps a law that prevents discharge in bankruptcy seven years after the debt becomes payable, but able to be discharged thenafter.