You are correct about lending being the problem. Education is not a free market where capital is allocated in proportion to value that is created, because all of the loans are subsidized. And the government can’t put itself into a position where it subsidized some loans but not others based on the curriculum, because there would be public outrage.

A long time ago I attempted to enroll in a nearby college to take some literature courses and simply pay cash and they were dumbfounded. I had to have career conversations, take a test, take required courses, and other nonsense. It is a deeply flawed system IMHO, designed to stamp out obedient employees and not actually encourage the proliferation of knowledge.