An article by Robert Applebaum, in (one of our greatest allies on the net) which describes the case for forgiveness of student debt:
He makes the following points:

1) President Obama’s recently announced plan to address this issue, while welcome, is woefully inadequate.
2) Forgiveness of the debt would act as an economic stimulus, putting money in the pockets of people who could then spend it elsewhere (restoring jobs).
3) The debt itself is too big. It has created a class of people Applebaum calls The Educated Poor. “Saddling entire generations of current and former students with massive educational debt comes with huge opportunity costs. As a result, the “educated poor” are not buying homes, not starting businesses or families, not inventing, investing or innovating and otherwise engaging in economically productive activities we need all Americans to be doing right now if we’re ever to dig ourselves out of the hole created by the greed of those at the top.”
4) Forgiving the debt is not unfair, nor is it catering to a class of undeserving people. National policy, driven by the loan industry, has created this problem, not laziness on the part of the current college generation. “The sad but undeniable truth is that, through student loans, we’ve shifted all of the burdens not only of obtaining an education but of maintaining a bloated educational system down the socioeconomic ladder on those who can least afford to shoulder the costs.”
5) “There’s a whole host of things that Congress and the president can and should do right away. I continue to think across-the-board student loan forgiveness will provide a sustained economic stimulus for the next 20-30 years, and reaffirm that an education is something actually worth pursuing.
But short of that there is no good reason why anyone should be able to have his or her gambling debts discharged or restructured in bankruptcy, but not their student loans.
There is no good reason why the collections of student loans shouldn’t be subject to statutes of limitations, just as any other cause of action, civil or criminal (other than murder), is subject to.
And there is no good reason why banks and other financial institutions can avail themselves of low- or no-interest government loans while students must borrow at interest rates of 6.8 percent or more just to obtain an education.”
More information can be found at the following sites:
Speaking for myself now, I received my education in a era when tuition was cheaper, getting student loans was easy, the interest rates were reasonably low, and the payment plans were simple and generous. It’s only been in the last 10 years or so that the situation has changed so dramatically. We don’t have to create an entirely new loan structure, we only have to go back to what it once was. This isnt even a transformational change, just plain common sense.