I did not know the legislative branch could impair contracts by fiat, just by decreeing that previously entered-into contracts could be denied enforcability.
Delay in payment or discharge in bankruptcy, yes. But to wholesale rewrite it? Hmmmmm.
Yes, courts do this with student loans all the time, actually. Student loans are nondischargeable in bankruptcy at present (since 1998), but borrowers can file an adversary and the judge can change the interest AND principal. I’ve seen it. They also change the terms with judgments.
I don’t like it—judges are often very soft on deadbeat student loan borrowers—I’m a big believer in binding contracts and upholding the terms of the promissory note.