For example: forgive the first $10k of every student loan and offer every taxpayer who paid off their loans a refundable tax credit for the same. In the same stroke, make 10% of loans granted in the year following enactment dischargeable in bankruptcy, limit federal guarantees to 90% of the loan value and reduce subsidies by 10%. That goes to 20% (80%) the next year, 30% (70%) the next, et cetera.
You aren't changing the terms of an extant contract. Lenders and schools have time to adapt. The program pays for itself and then some.
There is a grand bargain to be made.
For example: forgive the first $10k of every student loan and offer every taxpayer who paid off their loans a refundable tax credit for the same. In the same stroke, make 10% of loans granted in the year following enactment dischargeable in bankruptcy, limit federal guarantees to 90% of the loan value and reduce subsidies by 10%. That goes to 20% (80%) the next year, 30% (70%) the next, et cetera.
You aren't changing the terms of an extant contract. Lenders and schools have time to adapt. The program pays for itself and then some.