I think removing bankruptcy immunity would go a long way. It forces lenders to actually consider risk, and fixes a lot of perverse incentives. As it stands, there is no reason not to loan far more than someone could ever repay. You pay until you die, bankruptcy or not, and then your estate pays. And, it's guaranteed by the federal government. Why wouldn't you push as many of them everywhere you possibly could? There is no better asset on your balance sheet as a lender. It's guaranteed free money. But there is no asset, so it's even worse than the subprime mortgage scandal.

I know a few baristas in their 30s with six figure loans. Similar story for all of them. Barely 18, pressure to go to a good college, parents proud of their kid who encourage it more, who themselves are not the most financially savvy either. Throughout their college years, school administration makes it very easy to help them request another 10k or so at a time. Between parents, loan officers, and school administration, everyone is just whisking them through to sign and the money is theirs. Since it seems so normal and unquestioned, by people who are supposed to be providing guidance, many kids don't seriously consider the feasibility of the whole thing.

I'm a believer in personal responsibility, but I think when it becomes adversarial and systemically designed to provide all the rope necessary to hang themselves, it's hard to put the blame on some of the kids.