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You're absolutely right; only unwinding the bankruptcy stuff is problematic. It's a temporary measure to stop the spiraling upward costs and make lenders stop lending so much. And yeah, that has an almost immediate impact on people who need lending to go to school. Fixing bankruptcy needs to be married to some solution that makes schooling free for anyone that wants it. There's plenty of examples out there to model a solution after, it's not a novel idea.
In a world where a student can attend a public university for free, or hopefully pass a credit check to get into to Harvard, I'm okay with that. In fact, in such a world, I would love to see that college degrees come with an accreditation from both the institution ("Harvard") and the lender, demonstrating loan repayment is complete and/or in good standing, to specifically address the case people were so fearful of in the 70s -- someone takes out a loan, graduates, and immediately declares bankruptcy, "cheating" their way to a college degree for free.
In this fantasy world I've constructed, by the way, I also want a flying horse, and my dick is like 12 inches long, and I'm shredded but never have to go to the gym and can eat corn dogs all day long.