Because student loans are guaranteed through the government and borrowers are not protected by bankruptcy as with other private debts, Sallie Mae has no incentives to act or lend fairly. They are in a market of their own. Compounding Interest can cause a loan of $50,000 to skyrocket to over $100,000 if the borrower is unable to pay. They can even garnish your social security!
This debt will undoubtedly slow economic growth as people will be unable to participate in other sectors of the economy that require credit as long as this debt is crippling them. We don't need forgiveness, we need reform that makes these loans easier to pay off!
Suze Orman Discusses:
Segment from "60 Minutes" circa 1999 (Things haven't changed):