This is a multi-faceted problem. First of all, we have to accept that education is an industry, and student loans are a form of subsidy. It's analogous to the legendary ripoffs in the defense industry, when they were selling the US government $1200 toilet seats.
- The student loan program is a cash cow for the education industry, both public and private. Some 'schools' get upwards 90% of their revenue from this stream.
- The specifications for this 'product' have become bloated.
- The education industry pushes a lot of 'products' that aren't worth anything in the real world, ie degrees in 16th Century Left-Handed Basket Weaving.
- The education industry has convinced people that you need some form of their product, no matter how arcane, or you're not employable.
- Employers have also been convinced that they should only hire people who have bought the product.
- People get a degree because they're taught that any degree is better than no degree
- clueless kids out of high school go to college with no FN clue, and just want to party
- a lot of the private 'schools' are selling 'degrees' that are are utter schidt. I've seen the course catalogs of some of these, and it's a ripoff.
I'm not saying all college education is worthless; we need doctors, engineers, and (grits teeth) lawyers. My feeling is that if your degree doesn't prepare you for a profession or trade, why are you spending the money?
For the record, I don't have a college education. I couldn't afford it, and the prospect of being thousands and thousands of dollars in the hole right off the get-go terrified me, but that's a story for a different day.