Given how much an educated workforce gives back to our country, I never understood why the government doesn't offer interest-free student loans - especially since the debt cannot be discharged via bankruptcy.
Subsidized student loans produced many quality graduates. They also spun off reams of communication majors.
I'd actually argue part of the problem is lenders are totally immunized from the risk of their loans; if loans were priced to each institution and each major and each individual's academic record, that might pull wage and labor demand information from the labor market to undergraduate campuses.