The Government also NOW OWNS all student loans.
They will get their money back, regardless with “school” the loan was for.
The loans aren’t dischargable in bankruptcy. In fact, they now will fall unto any children the borrow has, until it is ALL paid back.
Where did you get that idea?
You are correct that federal student loans are not dischargeable in bankruptcy absent a showing of hardship, which is very difficult standard to meet.
However, I know of no law that binds the borrower's children unless they actually co-sign the loan (assuming they are of age to do so). Can you cite a source for that proposition?
That is absolutely false. There is no debt whatsoever that can be legally passed on to offspring. Once you’re dead, and your estate depleted, it’s done.