I think the loans should be written down to say 10 to 20 cents on the dollar or allowed to be included in any bankruptsy proceedings for those who simply can’t pay them.
It would be political winner for Trump to support a loan mark down in that folks might be willing to pay at least a portion of the debt to save some face and to get their debt burden eased. The people who agree to such write downs would have to do some sort of credit and budgeting courses and have restricted credit options for a few years. Special one time tax incentives could be offered to folks who have paid all their student loans and perhaps a full refund of the interest they paid.
There is a student loan debt issue and the greedy ones are willing to bring down sensible government to avoid paying it. Yet there just are not enough jobs or money in the world for all of these people to pay the loans back. A write down might be a better alternative than letting the greedy ones get away with not paying anything at all.
“I think the loans should be written down to say 10 to 20 cents on the dollar or allowed to be included in any bankruptsy proceedings for those who simply can’t pay them.”
As a practical matter what you are proposing must be done, but it’s a matter of who does it and when. This might be something Trump does in his second-term to set-up his successor for the next election. I just don’t see it happening before this election by Trump. Right now it’s a political anchor that’s dragging the entire Democrat field under.