Sweden has that system. The loans are also very low-interest (for a while the interest on my loan was lower than the interest on my basic savings account) [edit: just checked, the interest for 2018 is 0.13%. my savings account is 0.20%]

Sweden also has free tuition, and small living stipends for all (in my time it basically covered rent and nothing else), so your student debt is only for living expenses. I had classmates who took on no student debt by working all summer and living frugally.