Don't know if it'll make Colleges more affordable, but it'll definitely deter lenders from giving out loans to applicants that aren't as academically inclined or going into majors that have a low earnings potential.

The idea of banks having a risk free loans never really made sense to me...

Right now a college can offer useless easy degrees and charge anything they want, because 18 year olds have easy access to huge sums of money (government backed loans) and also tend to make poor financial sessions.

> The idea of banks having a risk free loans never really made sense to me...

They do not since 2010:

https://en.wikipedia.org/wiki/Health_Care_and_Education_Reco...

> Ending the process of the federal government giving subsidies to private banks to give out federally insured loans. Instead loans will be administered directly by the Department of Education.[23]

>Allow bankruptcy for college loans.

Making loans higher interest to handle increased risk, making it even harder for someone to pay for college.

vs the current situation?