Why are you so oblivious about how the world works?
You wrote
"But student loans were exempt from Bankruptcy laws so that everyone would lend to people for education because the lenders would know that the borrowers had to pay it back so they wouldn't hesitate to lend but due to the free market some con-artist came along and game the system and prevented it from working how we wanted."
Its not free market con artists making laws that Student loan debt had to be exempt from bankruptcy. It was the government making those laws which then prompted the free market to take advantage of the law by giving out student loans to everyone. How naive do you have to be not to see that if the government presents an opportunity to make guaranteed money that everyone will jump on it?
Same exact thing happened with the housing crisis. Government subsidized house loans so every bank gave to every joe shmoe who wasn't qualified because those loans were government backed.
You wrote
"But student loans were exempt from Bankruptcy laws so that everyone would lend to people for education because the lenders would know that the borrowers had to pay it back so they wouldn't hesitate to lend but due to the free market some con-artist came along and game the system and prevented it from working how we wanted."
Its not free market con artists making laws that Student loan debt had to be exempt from bankruptcy. It was the government making those laws which then prompted the free market to take advantage of the law by giving out student loans to everyone. How naive do you have to be not to see that if the government presents an opportunity to make guaranteed money that everyone will jump on it?
Same exact thing happened with the housing crisis. Government subsidized house loans so every bank gave to every joe shmoe who wasn't qualified because those loans were government backed.