Do that, and lenders will stop paying for degrees that aren’t likely to produce a paycheck.
That, in turn, will cut the cost of college to something closer to a level that can be “pay as you go”.
Precisely. Get the damn federal government out of the business completely. Even then, there will always be lenders available to finance somebody's degree in ethnic studies or whatever useless degree, but they will charge a rate commensurate with the risk.
My former state (North Dakota) had a state owned bank to finance student loans, among other things. They lent very prudently, including amount limits, students being required to put some of their own money on the line and show steady progress toward a degree, etc. Their default rate was very, very low.
Hillsdale College in Michigan goes a step further and won't allow any of their kids to get government loans. They have their own set of approved lenders. Since it is a conservative college with a reputation of turning out useful graduates, the default rate is very, very low.
I'm aware of at least three other conservative institutions (Liberty University, Grove City College, Brigham Young University) which have set up alternative loan pools in similar fashion to Hillsdale. Government loans are not yet prohibited, but they are working in that direction. Again, because all three turn out generally useful graduates, default risk is low.
When I was a pup, there was no shame in taking six or seven years to graduate because it was mostly pay as you go. The work experience which you picked up along the way actually enhanced your employability at graduation.
And they have a powerful reason to do so. The FedGov has tried to get its regulatory fingers into Hillsdale's pants on the pretext that its students are being subsidized through loans and other aid from the FedGov.
So Hillsdale rejects such subsidies to their students.