The idea is that you can’t “give back” the education so if you could discharge student loan debt the whole system would probably collapse as students would just finish their education and declare bankruptcy.

The idea is that students have nothing to lose and a mountain of debt when they graduate, so they should systematically declare bankruptcy to erase the debt.

The bankruptcy would remain on their credit report for seven years (affecting their ability to buy a house, rent an apartment, or perhaps even get a job), so it's not at all correct that they have "nothing to lose".

It's not like they could repay hundreds of thousands of debt and buy a house within 7 years anyway.