Earlier quoted context omitted.
Government backed loans inflate demand. If banks had to consider the risk of repayment prices would come back to reality.
Colleges should be on the hook for a least a portion of defaulted student loans. That would give them a direct incentive to hold down tuition.
Is defaulting on student loans possible? I thought, at least in USA, the only way to get out of student loans is: pay it off, work for a qualified nonprofit for awhile, or die