[droithomme]

Student debt is impossible to discharge even through bankruptcy. There is zero risk to these loans because they are federally guaranteed loans. When the student defaults, the government repays the note holder as a matter of course, then the government goes after the student. The bailout is already guaranteed. The students will not be discharged of their debt anymore than the homeowners got their mortgages paid. What happened is the feds bailed out the bank losses, AND allowed the banks to evict the homeowners AND allowed the banks to keep the houses and resell them. But all this was only a tiny amount of the cost. On top of this were the CDOs and CDSs totalling, according to one estimate, one quadrillion dollars, more than all the assets in the world. The banks/investors/speculators are still being bailed out of these "losses" which were never real losses and only represented losses to unearned and absurd gains they hoped to make as part of a pyramid scheme.

The people stuck with the debt at the bottom of the pile don't get bailouts.