[tehwebguy]

Then we should consider rewriting the laws which made a system where there is no consequence for lenders who make dumb decisions about who they lend to, and possibly consider consequences for the colleges they are basically colluding with?

See the problem now?

[qaq]

The consequence for lender is not getting their loan back. You can remove special provisions related to student loans this will make loans less accessible and they will carry higher interest rates but it's a reasonable approach if people want to make this change.