Yes, I understand the VET/FEE-HELP system is in place. The cadet still ends up paying the total bill in after tax dollars. Failure to qualify still falls on the shoulders of the cadet backstopped by the Federal government as the loan is eventually recouped through via the tax system.
Doing it this way removes most ability for the operator to control the pilot. Just starting to hear experienced FO's are taking China contracts too, I presume for their upgrade potential.
Learning to fly is still financially highly risky. Operators may eventually need to assume some of that risk to keep the equipment flying.