The student loan industry is a dirty one, specifically because it hurts those it's allegedly trying to help. Both Washington and Wall Street are guilty of this: they have benefited from organizing the system and profiting from it respectively. Privatizing the industry this way has not helped those with debt, because they are beholden to the rules that the government and the banks have outlined.
Any student that was forced to take out a loan for schooling was harmed in a major way. Student loans are one of the top debts in the US, and are also one of the top debts that do not get paid back. Many can not find jobs in their field after college, while others simply do not make enough to manage the high interest rates and minimum monthly payments.
Student loans are now at a ridiculous price and to encumber young people with that much debt at such an early age results in people not being able to afford housing, and not living up to their potential. The sheer volume of money that is owed in debt now will never realistically be paid back so they should let it go,
Privatizing student loans means that students who truly need assistance getting through college are easily taken advantage of. There is much less regulation, and private entities will do whatever they can to make maximum profits from these students. A person who truly wants to be successful will do whatever it takes to get through college, even if that means paying outrageous amounts of interest.