Yes, nothing lost, but completely ludicrous.
There are no end of people able to fund the cost of a commercial pilots licence. There is nearly always an oversupply of pilots, and even if there weren't, it would be a matter for the industry to address rather than the taxpayer. If supposedly ambitious and talented people are being obstructed in pursuit of this occupation, it might suggest they are not ambitious or talented enough. There is currently and forseeably, a near total collapse in the demand for inexperienced or ab-initio level pilots. Yet as evidenced on even these forums, there are whole swathes of people oblivious to the reality and still prepared to fund their own training in pusuit of an enormous gamble.
Even taking a more much optimistic view of the near and medium term future, the enthusiasm to join the supply chain would negate any imperitive for the taxpayer to need to support or increase this level of supply.