It seems like the root problem is that students cannot declare bankruptcy on student loans. If they could do that then lenders would adjust for risk accordingly which would lower the availability of loans, which would in turn drive tuition down. I know there's an argument that students will just declare bankruptcy after graduating, but if that's the case then the solution would be to make bankruptcy less appealing via disincentives (more penalties for declaring bankruptcy).

Making student loans exempt from bankruptcy is distorting the loan markets and, in turn, tuition. If restricting the availability of loans creates a situation in which the higher education is unavailable to students without financial means, then the state should make free or very low cost higher education available to offset this. The solutions are so obvious that it's pretty clear that the financing of student loans is a giant con at this point.