A percentage of student loan debt is held by the school the student attended

Economy
1

All are part of student loans are held on the books of schools/universities, they will also decide which loans to approve. The loans will now be dischargeable via bankruptcy. This means if the school accepts student loans as payment for degrees that are a waste of money, they will have part of the financial burden if the loans are not paid back. This should stop schools from churning out graduates that have little no potential to be productive members of society. The schools can even profit of the interest on the student loan payments giving them an incentive to still take loans as payments. This would force schools to create a merit based approval criteria for loans.

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