[pmichaud]

The logic isn't that student loans are a special thing that shouldn't have to be paid back. The logic is that under normal circumstances the lenders has an incentive to evaluate the probability that the borrower will actually pay the loan back. They might raise the interest rate on higher risk loans or just refuse to lend. But with federally guaranteed loans that can't possibly be discharged, the lender's new incentive is to saddle all possible borrowers with as much debt as they can, regardless of their ability to pay.

The idea is that the lenders would stop lending to students who are likely to fail or who are studying something they won't be able to get a job in. The new reality would be: either study something with serious job opportunities, or pay out of pocket.