University degrees, in practice, aren't about learning or education. Depending on the person and the university, they are about accreditation (you have more doors open with a bachelor's than you would otherwise, depending on the degree) or they are about connections. Either one can be worth a loan.

But I'm not so sure that making them free accomplishes either one. It's possible that doing so would only push the problem to the master's programs as organizations and candidates look for differentiation.