A simple reinstatement / amendment to current bankruptcy codes would allow underwater student loan debtors to discharge said loans through bankruptcy filings, just as underwater entrepreneurs, market speculators, irresponsible and responsible investors alike and business persons are permitted to do.
It is of dire consequence that we as a society are allowing the message that it's ok for one to try and fail in the business sector, we will give you a second chance. BUT if one tries and fails in the pursuit of betterment, liberty and happiness through higher education then there is NO second chance.
American society should offer the same recourse to students as we do to the business sector.