Surplus of Qualified Pilots?
I disagree somewhat with Strafer's assertion that morals and business don't go together. No business can stay in business very long if they are violating the expected ethical standards held by their customers or the laws of the land. I just don't see this as a moral issue, particularly for the flight training schools.
Concerning flight schools doing all they can to "encourage as many people to train with them as possible" I must ask what planet are you from. This is what businesses do and you should be glad some are willing to enter the market. Market forces will keep the supply and demand fairly balanced, meaning some schools will liquidate when demand shrinks. The best thing you can do is choose one that has enough students they are not in danger of liquidating while they have your advance payment!
The FTOs don't demand anyone borrow money to pay for the training, though some help with the loan process itself. The banks don't hold a gun to anyone's head saying "sign the papers." The decision both to train and to borrow are the individual's decision. The bank's don't take it lightly either as loan officers are accountable for bad debt. Frankly, British banks are quite risk averse and not loose with the pruse strings, so these loans are not all that easy to get.
I've never heard of an FTO giving job guarantees. Even sponsorship schemes give conditional job offers, meaning the job might not be there at the end.
The general attitude in the industry is that it costs upwards of £60,000 to train for an ATPL on an Integrated course and upwards of £40,000 to train on a Modular course. I don't think there is an attitude that says you have to borrow the money to pay for it. Again, the debt decision is yours, not the industry's.
Finally, regulation of industry has been a colossal failure almost every time it has been attempted. Your proposal to regulate a non-existent problem is not only naive, but completely unworkable. It is a bit naive to think there is a surplus of qualified pilots. There may be a surplus of people with licenses, but if the airlines thought they were qualified, they would hire them. Again, market forces are at play. Essentially what you are saying is you'd like to force the airlines to hire license holders they have determined are less desirable, simply because you feel sorry those license holders have debt.