When you borrow money you have a legal and moral obligation to repay it. Money lent by the government should not be any less important that money spent for rent or your car. Of course you have the ability to declare bankruptcy and live with your decision for years with your less than spectacular credit rating. Should you be arrested for not paying your student loans? Probably not a good idea.
As far as financial hardship is concerned a lot of people have it for various reasons but does not give anyone an excuse to not pay your debts. It takes time, effort and responsibility to restructure you debts with creditors or yes...even go bankrupt. It does not however give you the right to just flush your debts. When folks don't live up to their obligations there should be a bit of discomfort and hardship involved with it.
A side note....both my wife and I have bachelor's degrees and have never owed a dime. We got ours through 26 years of service in the military...studying a little at a time over time. The thing about it is if you don't pass a class you have to pay the VA back for that class. What a revolutionary idea. I'm not saying the military is for everyone but none the less.....there is a way to get a degree without going totally in debt.