Surely the government would keep giving them, with some proff that somebody actually wants to complete a useful degree.

I think in the future, those student debt punishments will be looked on in a similar way to indentured servitude. At best, forced to work (though for an indefinite, likely forever time period) for whoever gave the loan, and at worst, much worse.

Debts are risky, and should occasionally be discharged with bankruptcy. Zero risk loans make zero interest