I think at least part of the solution is to involve your children in your finances. I think if they are able to understand your families monthly/yearly budget, they will be much less likely to take on a ton of debt, as they will more likely understand the consequences of their decisions.

The financial literacy in this country(USA) is absolutely terrible and I think this is one of the most important things a parent can teach there children, because they will not learn this in school. Part of the problem is that most parents themselves are not financially literate and do not have savings or budgets. Life is so much easier if you have a good understanding of money. People like to say "Money doesn't matter", security matters and freedom matters, good luck getting either of those things without money.

At this point it is very obvious the government or universities are not looking out for us in this regard, so this will be one thing my children understand.