For-profit higher education centers got their start, grew exponentially, and make high profits because of student loans. When the expansion of federal loans came about, these entities saw dollar signs. Money is easy to get and they couldn’t care less if student can/can’t afford to pay the huge loans back.
And how dies this differs from Harvard or Columbia or any State U.? Do they really care if your degree in the History of Ideas is ever going to pay enough to let you pay off your loans?
This is just a further attempt to get control of all education. It's using the 'bash the capitalist' theme.
The Obama-ite alternative will be like union apprenticeships. If you want to sign up for classes to become a carpenter, you'll have to have a slip from the Carpenter's Union to get matriculated, and to get a loan.