You can't get blood from a stone either and that appears to be the only alternative the lenders are seeking. The many of these loans are bad, they were for more money than the education provided in income. If they don't become dischargeable or just get written off the system is going to collapse
If the student defaults, the lender still gets paid. The government steps in and pays them. The debt is then essentially owed to the government rather than the lender.
