Student Loan Settlement

I have an idea that would pump money into our economy and help a lot of struggling grads. The IRS allows repayment settlement of back taxes (an "illegal" loan) by having those that are delinquent, pay mere pennies on the dollar. What if those holding student loans were offered a similar sort of settlement, as long as they paid in full by say June or Dec. 2012? The government would get a big infusion of monies and the students, many of whom who cannot find jobs, will not have this hanging over them. I know I would do it! Don't students, who were trying to improve their employment outlook, deserve at least as much as those who have avoided paying taxes for years?