In the USA, the government also pays for education. That’s part of the problem, in fact. Since the loan to the college is always paid for by the government, the college is effectively handed a blank check. Said check, now filled in with an arbitrarily high amount, is handed to the student as a bill to pay back to the government. The same is done in your system, in fact, except that the entire country suffers that burden, regardless of if that degree actually amounts to any meaningful contribution.