This is not a new thing. Plenty of people are out there with huge debts for courses that were never completed.
There are plenty of jobs, who do you think flies all the GA aircraft and airliners out there?
There will always be people that don’t ever make it, it’s how life works unfortunately.
The ATAR does not determine how street-smart you are, that’s a common misconception.
If you decide to become a career pilot at age 40, you need to do your research on job availability and career prospects as changing ANY career at that age is usually an unwise move. Add a partner and kids into the equation and you’re asking for trouble.
Short of a government employee interviewing everyone before they hand out the money, how are you going to stop it?