I think I'd be in favor of discounting them / forcing the interest rate down to ~0% so that they get eaten by inflation over time.

I don't think it's right to let people who sacrificed go high and dry while the people who abused the system get a break, though that is often how it plays out.

But it seems like there would be ways to lessen the burden for people who did take big loans without it being a complete handout.