Agreed - "students refuse to do so" as the parent comment mentioned because they recognize the risk, both with the things you suggest and the ding to the prestige they're trying to buy in the first place.

While I agree with the parent's general sentiment I also think it's not addressing the initial intent. The reason for the federally backed loans was to give people access to loans that the banks would otherwise deny. The intent is good, but the knock-on effects and perverse incentives that get created are quite bad.