That's Glenn Reynolds' proposal:
[T]he solution is more value for less money. Student loans, if they are to continue, should be made dischargeable in bankruptcy after five years — but with the school that received the money on the hook for all or part of the unpaid balance. … Make defaults expensive to colleges, and they'll become much more careful about how much they lend and what kinds of programs they offer. China, which has already faced its own higher education bubble, is simply shutting down programs that produce too many unemployable graduates.
Allahpundit is intrigued:
As our Republican frontrunner once famously said, this smacks of right-wing social engineering. And I love it. Or rather, I love the basic idea: Colleges can either pare down their curricula to majors that impart actual marketable skills or continue to push crapola on their own dime.
The Dish 