Or just look at how other countries do it - in UK your payments for the student loan are taken automatically from your salary each month(10% of anything above 20k/year - so if you make less than 20k/year you don't pay anything), but if there is any outstanding balance after 20 years it's automatically forgiven. No need to declare bankrupcy since if you can't pay it back there is simply nothing to pay. If you have a job it's paid back automatically without the employee having to do anything. If it's paid off in 20 years = great. If not = no big deal, you just get a letter saying that your outstanding balance is now zero.

I guess that system is possible because all loans are provided by the Student Loans Company which is ran by the government - and tuition is capped at 10k/year, so it doesn't matter what or where you study - the cost is exactly the same.