Higher education came under government control when they accepted government-backed loans to finance education. I’ve heard some conservatives say that the cost of higher education went up with the availability of government financing.
I’ve also heard that bad lenders make bad loans. There are at least two sides to the transaction. I’ve also heard of the liars loans that were made leading up to the collapse of the housing bubble in 2007. There was even a court case that absolved the borrowers of liability because the evidence showed that the lender didn’t care if the borrower could pay it back. They were only going to sell the loan, anyway.
While I agree it’s important to be responsible for the debts we incur, it’s also important for the lenders to decide if the loan can be paid back. And if the borrower can’t pay it back they shouldn’t make the loan. And then there are circumstances (acts of god) that make the loan impossible to repay, like natural disasters, political and economic strife and so on.
I’ve also read that about every few generations or so, the government intervenes to implement a massive wealth transfer back to the people who will spend the money. 50 years is about the right amount of time for such a cycle of renewal.
Yes, there will always be people who game the system. And those people who do game the system, on both sides reap enormous benefits from doing so. When the government hits a reset button, the benefits that the wealthy receive from gaming the system are wiped away. Not sure about the poor. I think they just want to live to see another day.