Something is really wrong with a regime that _lends_ an 18 year old $100,000 for an art degree. This is only possible because the lender is guaranteed paybacks no matter what (because the borrower cannot default).

If we let borrowers default on loans under certain criteria (say, their annual income was below a certain threshold), then lenders would have to actually vet the students degrees --- and then we might have a sane system where you're denied a student loan if you're going to major in underwater basket weaving, but approved if you major in engineering.