Lol, yeah no.
Working stiffs or people who paid their way through college shouldn't have to subsidize some losers useless degree.
A loan was taken out. Pay it back.
There absolutely is a cogent and righteous argument to be made on students being charged a juice rate that would make a loanshark blush, but outright cancellation is the most hamfisted solution possible (not to mention doesn't address the further issue of college tuition being out of control because colleges run their schools like drunken sailors).