I worked while in school and I still needed a loan.
Here's the trouble: when some students borrow money for school, that increases demand for education services. The institutions see the increased demand and raise prices. This price increase prices non-borrowers out of the market for an education. Those student then must get their own loans so that they can purchase the educations services they lost to other borrowers.
The "winners" of an education, then, are those that borrow the most money.
It's insidious. Of course those in the education industry love it. The students borrow that money and those in the education industry get to spend it.
The education industry doesn’t really like it. Because all these loans come with a huge overhead for them. The financial aid department is often the largest department in a college, and they have to do the most recurring training. They don’t spike the price because of all the loan money coming in, the spike the price because their costs have gone up because they have to add more people with more training to an already huge department.