> How about hanging these debts back on the institutions who sold the students their worthless degrees? <
That is an excellent suggestion! Colleges should be co-signers on student debt.
As it is now:
Student: “I want to major in 14th century French poetry.”
College: “Great! Now fill out this financial aid form.”
With your idea in place:
Student: “I want to major in 14th century French poetry.”
College: “Don’t be stupid. Try again, pal.”
Well, you can do that, but the job prospects aren't very good. We can loan you a maximum of $5,000 toward that tuition at 14% APR. How do you plan on paying for the rest of it?