It's a question because we shove a lot of people into college that don't belong there, and then they can't cut it, and end up with the worst of both worlds: no college degree (employers can legally discriminate against them based on that) and a bunch of debt.

10 years @15% if you've graduated is biased towards people with shit degrees is all I'm saying

Agreed -- but keep in mind that institutions aren't going to be accepting loan-financed students who are unlikely to be able to pay the loans back, because that results in the institution repaying the government loan instead of the student.

It's also biased against institutions offering shit degrees at high expense. If institutions have to start eating the costs of a Byzantine pottery degree, they'll either stop offering it or start finding ways to do it more cheaply.