Just let student loans go into bankruptcy. Most of the problems would be solved. Banks would be forced to actually evaluate someone's ability to pay back the loan after school, they'd give out smaller loans to lower their risk, schools would be forced to charge less due to less people being able to "pay" (people already can't pay without these insane loan amounts). Worse case for students who can't repay undergrad loans is that they're early 30s and starting over with no debt.