I think a third real issue is also important, the 'undue hardship' burden necessary to get rid of student loans through bankruptcy needs to be dropped.
The issue is that if lenders looked at creditworthiness for college loans the way they do for mortgages, either the price of college would have to decline precipitously, or they would trust far fewer people with that amount of money.
The trick to fix our college system is simply allow student loans to be discharged through bankruptcy, like any other loan. It is a simple incentive shift that changes the whole dynamic of the higher learning industry. All the problems with it that we talk about nowadays will right themselves and everything falls into place with this one weird trick.
I'm not pro-student debt, but I don't see how this is sustainable for colleges either.
So, perhaps, "student loans" need to go (in the sense of all of the awful regulation (or lack thereof) around them), but not necessarily "loans to students to earn a four-year degree".