It's a confidence game being played on 17 year old kids who don't know any better. I agree it's a grey area and the fraud label may not fit, but it's fairly close to the truth.
The Confidence Game that the US government is playing on 17 olds. It's not the universities that are giving people loans to walk into a casino.
Perhaps we shouldn't seize the assets of random voters who enacted these programs
Underwriting loans which the borrower has no ability to repay is fraud.