That's what happens without regulation (limits on the size of the loan) or inflationary controls (rate increases). Lending exists to help amortize the cost of a big-ticket purchase so that they can grow and have security, as a business or a person/family. But when you take away the guardrails you have runaway student loan and mortgage debt. At least with the latter there is an asset that has some value.

You just described the effects of the student loan industry, too.