So what's next? Car loans? Home loans? Small business loans? Why are we even considering allowing people to not keep a contractual promise they made. Why school loan? And why not private loans? Why only public loans. This is a horrible precedent to set.
And when you say "Bottom line, no one is paying it back"? What do you mean by this.
What a wonderful way to teach your son how the real world doesn't work. Bravo!