It hurts those who are qualified, but have to learn at a lower level than they can operate at, cutting short their educational opportunities. It also hurts those who can do well in life, but they don’t quite operate at a level required by a decent college.
So the Blacks who got those loans ended up getting stuck with bad loans on underwater houses, i.e. they were the stuckees at the bottom of the housing pyramid. The liberals thought they were doing the Blacks a favor by forcing banks to give them home loans that they couldn't afford, but ended up putting them in a worse situation with a foreclosure added to whatever other issues they had.
Similarly, forcing/cajoling colleges to give college loans to unprepared Black students only puts them in a worse position when they end up flunking out after wasting a year or three that they could have spent working themselves up the corporate ladder. And now they have school loans they have to pay back!
Liberals are certainly the gift that keeps on giving... like STDs.