Maybe I don’t understand bankruptcy policies, but how can the federal government spend billions of dollars bailing our corporations that fail, but can’t wipeout student debt for millions of students that can’t pay back student loans because they can’t find a job? Why can’t student loans be forgiven in bankruptcy like any other debt?

There are a number of issues here. First is the extreme expense of education. Almost everyone needs some amount of financial help in order to afford college. Second is the likelihood that the borrowers would be able to pay back the debt. As you’ve pointed out, right now that likelihood is pretty low. For a bank to make a loan they need to see a payment history and income, two things that most kids going to college don’t have. No banks would make a loan to a student, so the government stepped in and created government backed student loans that could not be discharged in a bankruptcy to ensure that banks would give out loans because they were ensured to be repaid.

There is actually a way to have student loans discharged in bankruptcy however. You must prove several things including that the debt repayment amount is significant enough to affect the minimal standard of living and this will continue to be the case for the foreseeable future.