It’s more the IDIOT parents they’re bailing out. The ones that cosigned, or otherwise enabled their kids to take out these loans for (mostly) WORTHLESS degrees.
That is where you are wrong. The parents aren’t the co-signers for these loans, the Federal government is. That is why they are “Federally guaranteed” student loans. In 1988, when I was 18, I signed a loan document for $6,500 despite having no credit history, no job, and no plan for paying it back. My parents didn’t sign a thing. And Uncle Sam was the one who had to pay back the loan if I wouldn’t or couldn’t. It’s a no loss for the financial institutes, and a huge loss for the taxpayer.
I say end the program, starve the modern University system of it’s endless supply of money, and make a college education a valuable commodity.
I have two grandkids graduating in May. They have no debt due to working and parents’ sacrificing. So, would my grandkids have been better off borrowing and defaulting. We have also all paid off our mortgages. What schmucks we are. I despise liberalism.