If they weren't protected from discharge, they would be. That's why the rates are lower, because there's no loan maturity, it just keeps generating interest until it is paid off.

If the argument is "student loan interest rates should be higher" then 1) they should be dischargable, and 2) I'm not sure I'd agree. Though I'd hope that that (and falling applications to schools) would have a downward pressure on tuition rates, I'm skeptical that would happen. So now student loans just become more expensive, and less attainable.