What was one of the central issues of the Occupy Wall Street movement, student loans are back in the spot light again now that Obama is putting his campaign in full throttle and is promising "relief" of some sort (yet again) to those who have a useless degree and a mountain of debt or someone who has a useful degree, a mountain a debt, but went to a bad school most companies don't hire from and has bad grades (2.0 average) and doesn't know crap about the material.
Having gone to college and graduated and found a great paying job in my degree field I must say that I'm one of the lucky ones or maybe because I had the right stuff to begin with (ego-talk). Fortunately some of my good friends managed to find jobs as well, and are living the American life: Engaged and saving up to buy a home. Meanwhile, the ones I don't trust have not managed to get one, yet.
I'm learning that not everyone is college level material and having the funds to go to one does not make you college material.
So... should there be a bailout? No!
However, there should be reform. Right now I'm not happy with nelnet, which is the defacto student loan servicer. They have a check-box on their website that says "Do Not Advance Due Date", but it's grayed out. And if you mail the check and specific instructions, those get ignored and the due date is still extended. By telling it to no advance your due date, whatever money is left over, they spread the payment across so that as little as possible goes to the principal. Additionally, their minimum payment is different (smaller) than the minimum 10-year payment plan you get in the amortization schedule. Minimum payment is simply less only to cover interest and fees but keep the principal the same, so you basically pay for the loan forever because the principal never shrinks... I understand private loans are set up this way, but loans underwritten/owned by the government should encourage slightly higher minimum payments to ensure the loan gets paid off.
I also don't like how nel-net is set up. Which is a quasi-government/private corporation and simply has the best of both worlds... very little regulation/oversight.