The loans and the "Everyone must go to college" philosophy are the driving force of the Education Industrial Complex.
There are more potential students than there can ever be slots in college.
All those who attend have to earn a degree in something.
The college actuaries figure out how much money is there, from student, Daddy, grants, loans, jobs, and price the tuition accordingly to get most of it (Hey, those football teams aren't cheap, and we have to remember that's what college is REALLY about).
The students get ummarketable degrees, because not everyone gets to be a rocket scientist, doctor, engineer or lawyer. (Let's take Women's Studies--the few potential jobs mostly would be helping some capitalist enterprise market toward women, which is anathema to the kind of mentality that gets that degree, and the job is better done by a real sociologist.)
They complain about how tough it is to get the loans and grants.
The government raises the loan amounts, and GUARANTEES THEM.
The schools raise their tuition to account for the increase in potential income in the market.
Repeat.
This is first year, hell, first week, hell, junior high economics of the "supply and demand" type. Anyone who gets to, much less through college and can't grasp this should have their degree fed through a shredder.