There’s extreme moral hazard in allowing institutions to lend money on this scale while protecting them from the risk of a borrower’s default as well.

There's extreme moral hazard, on that note, in an education system which requires those seeking better opportunities to pay out of pocket - and thus necessitates such predatory loans in the first place.

That institution that lent the money was the US government.

yes

What's the hazard?

For the worthless schools that took loan money and didn't deliver education (for-profit scam schools), those could be forgiven. For all the expensive degrees that have led to jobs that can't pay the loans back, this all shows how inadequately prepared the students were to do basic arithmetic and cost/benefit analysis. That's on their parents.

Yes, for sure. If we do forgive loans it is pointless if we don’t fix the underlying issue.

What about the moral hazard of making the loans in the first place? These banks take all these risks, and well, you know what happened in 2008 right? They got bailed out by the government. But the minute people start talking about bailing out people? Woah, that’s way too far!

It’s going into debt is such a bad thing then why do we have it at all?

The banks don't take any risk since taxpayers are underwriting the loans for free.

This is all really about ending the banks risk free gravy train.