This would save young Americans from going into crippling debt, but it would also make a university degree completely unaffordable for most. However, in the age of the Internet, that doesn’t mean they couldn’t get an education.
Consider the long term impact of this. There are a lot of different ways such a situation could go, for better and for worse.
Chicken and egg. The tuitions have been able to reach the insane heights due to the ready availability of these loans.
It was a lot harder to get loans thirty years ago. Almost on par with the criteria for any other personal loan. A four year CompSci degree that could be had for under $25K, in total, opened the door to a $45K to $60K entry level position for a typical graduate.
Availability of loans broke wide open, under the guise of providing opportunity, and now the same degree costs 5-10x with yet the typical entry level salary remains more or less the same, give or take a few inflation points.