I would assume any other kind of loan a 22 year old gets usually has an asset tied to it that can be repossessed. You can't really repossess knowledge
Unsecured loans aren't new.
Maybe asked differently: how much of your personal retirement money would you lend to such an 18 year old for the prospects of a 7% or so yield?
My point is that you won't find credit card companies willing to loan those same people $50,000 and they shouldn't. The ability for young adults to easily strap on large amount of debt has inflated the price of college. Banks only do it because they are guaranteed to be paid back. If banks were more strict with their loan requirements, they wouldn't give so much money away and, in turn, there would be fewer students out capable of paying high tuition.
Colleges would be forced to lower costs, ideally to the days where you could afford to pay tuition by working part time.
For me, it would virtually ensure my kids would have their pick of several top or top-middle private colleges paid from 529 accounts and by co-signing or remortgaging our house; nevertheless, I’m still adamantly opposed.
I’m not convinced you can live for four years on part-time work alone, let alone buy tuition, lab fees, and books on top of just your housing, food, utilities, and minimal entertainment in many college towns.
The top and even top middle school (probably every school outside HYPS) would either lower in cost or dramatically cut class sizes. There is a small number of students who’s parents can actually afford the 50k sticker price - either prices drop or these colleges end their undergrad programs. These institutions will not cost 50k/semester.