[legitster]

> actual dollar amount of the debt is what people pay

Exactly right! A loan is a time capsule of prices. Wouldn't you rather buy a house 30 years ago than right now?

> interest far outstrips inflation on many student loans

Maybe on some, but not on the federally subsidized student loans we are talking about here. My interest is something like 2.25% (not including the 2 years payments have been frozen). Even when inflation was pretty stagnant, you would be hard pressed to find many years below that.