Immediate write-off of 30% of outstanding balances, 25% loan forgiveness to the borrower, 5% as a fee to the educational institution where the loan originated to collect the remaining 70%.
Morally, you may be correct.
But politically, something like this has to happen to give it a realistic chance of passing.
Think of it like a credit card company who has been charging at way above market interest rates and fees for years and then decides to settle for 70% as an attractive alternative to default.