The universities aren't on the hook for student loan defaults so they don't care about the expected return for the borrower or the lender. If students borrowed from the schools directly, then the admissions process along with university spending patterns would be vastly different. The only thing we have that is remotely close to this is schools giving out scholarships to students who have great potential to be high earners who later donate back to the school.

That will lead to universities only accepting students that would get jobs after graduation, which would probably kill many majors that don’t have high employment rates.